Massive cuts and elected mayors for West Midlands
West Midland authorities are facing massive cuts in their funding packages from central government for 2011/12 to help plug a national shortfall of £6.5bn over the next year. It comes as the government also revealed plans for elected mayors in its Localism Bill for Birmingham and Coventry.
The hardest hit authorities by changes to government grant in the West Midlands include Birmingham Council, which will experience an 8.3 per cent reduction in funding for 2011/12. A 6.99 per cent cut is set for Wolverhampton, a 6.7 per cent reduction is set for Sandwell, a 6.6 per cent fall is set for Walsall and a 5.7 per cent reduction is set for Coventry.
The government unveiled a £85m transitional grant to help councils deal with changes to their funding,. A £650m fund was also announced as an incentive for authorities which freeze their council tax bills.
Local government secretary Eric Pickles said: "By adopting an intelligent and fair approach to the way funding is allocated, we have been able to ensure those parts of the country that are most reliant on central funding continue to get the lion's share of the taxpayers' money that is available. Funding fairness underpins this settlement."
The GMB union fears almost 74,000 jobs will now be lost at authorities in the country. Its national officer Brian Strutton said: "Today's announcement of the grant settlement for local authorities means that the job loss predictions will now become a reality with many more to come. The scale of cuts will be a devastating blow to council workers as local services are to be slashed."
Meanwhile, the government revealed that 12 English cities are set to receive an elected mayor - Birmingham and Coventry are included in the list. Before any elections, the current council leaders of these cities are to become shadow mayors and be given the powers available to existing council mayors.
Mayoral referendums will follow in May 2012 before a possible election day in May 2013 using the London mayoral election voting system. Mayors will be elected for four-year terms and "have the status and power to make their city a success", the government said.
