The Director of Finance commented that the Chancellor of the Exchequer had presented his Spending Review on 20 October 2010 and he provided a summary of the main measures that would affect local authorities over the four years of the review. However, the full financial impact would not be known until the Provisional Formula Grant Settlement was announced in December 2010.

He reported that, in real terms, there would be a reduction of 28% in local authority budgets over the next four years, with core funding from the Department for Communities and Local Government (DCLG) falling from £28.5bn in 2010/2011 to £26.1bn in 2011/2012, £24.4bn in 2012/2013, £24.2bn in 2013/2014 and £22.9bn in 2014/2015. The Director presented a review of the likely impact of the Spending Review upon services provided by the Council. However, he would not able to provide a detailed analysis until more information had been received from the Government.

It was moved by Councillor P Davies and seconded by Councillor B Kenny –

“(1) That this Committee is extremely concerned at the coalition government’s huge cuts to local funding which, according to independent experts such as the Institute of Fiscal Studies, will have the greatest impact on the poorest in society.

(2) That, in the interests of the people of Wirral, this Committee urges the leadership of the Council to lobby the government to rethink the scale of the cuts which it intends to impose on local authorities.

(3) That the case continues to be made with the Government to try to ensure the best possible outcome for Wirral in the Formula Grant Settlement.”

It was moved as an amendment by Councillor P Gilchrist and seconded by Councillor J Keeley –

“(1) That this Committee recognises that any Government elected in 2010 would have had to face the same economic and financial situation and taken steps and additional measures to look at public expenditure in relation to the resources available.

(2) That Committee further recognises that any incoming Government would have faced the same stark choices and might have taken longer to make those choices, but the structural deficit would have had to be addressed.

(3) That the case continues to be made with the Government to try to ensure the best possible outcome for Wirral in the Formula Grant Settlement.”

The amendment was put and carried (6:4)

Resolved (6:4) (Councillors P Davies, B Kenny, A McArdle and J Stapleton voting against (1) and (2) below) –

(1)  That this Committee recognises that any Government elected in 2010 would have had to face the same economic and financial situation and taken steps and additional measures to look at public expenditure in relation to the resources available.

(2)  That Committee further recognises that any incoming Government would have faced the same stark choices and might have taken longer to make those choices, but the structural deficit would have had to be addressed.

(3)  That the case continues to be made with the Government to try to ensure the best possible outcome for Wirral in the Formula Grant Settlement.