Budget: Cut consultants and diversity schemes to save cash, Hunt to tell councils

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Budget: Cut consultants and diversity schemes to save cash, Hunt to tell councils

UK councils will be advised to reduce their spending on consultants and diversity schemes in the upcoming Budget, according to Chancellor Jeremy Hunt. Local councils have been warning that they are struggling to balance the books as financial pressures continue to mount, leading to cuts to services in cities such as Nottingham and Birmingham. However, the Local Government Association has argued that diversity schemes account for a relatively small proportion of expenditure. Mr Hunt is also expected to confirm a freeze on fuel duty for the year ahead.

Chair of the Local Government Association, Shaun Davies, noted that cuts to council budgets were the result of increasing demand for services, rising costs and cuts from central government. He stated that 19 councils had requested exceptional financial assistance from the government this year. He added that discussions regarding diversity schemes were a “distraction” from the real problems and called for funding to be allocated according to need, rather than relying on “competitive bidding”.

Recent surveys have indicated that two-thirds of councils in England are planning to cut services. However, the majority of these are also preparing to raise council tax by the maximum 5% next month. Birmingham City Council, which struggled with large cuts last year and had to make a £1bn payout to settle underpaid equal pay claims, is planning a wave of cuts to local services, in addition to a 21% hike in council tax rates.

The UK government has pledged to provide an additional £600m to help alleviate budget deficits in local authorities. The Levelling Up Secretary, Michael Gove, also indicated that local authorities should produce productivity plans in order to “improve service performance and reduce wasteful expenditure”. Gove added that councils should evaluate whether expenditure is “meeting this objective”, suggesting that spending on “discredited equality, diversity and inclusion programmes” may be targeted

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