The upcoming Budget announcement by the Chancellor of the Exchequer is a precise balancing act. The Chancellor must determine how to allocate funds for voter-friendly policies, decide where to cut spending, and consider the political message the budget announcement will send. One area which is under scrutiny is council budgets which are facing significant pressure, with some councils announcing significant cuts to balance their books.
According to Conservative Way Forward, an organization that sent Freedom of Information requests to English councils and other public bodies, the Chancellor will recommend that councils reduce spending on diversity programs in the upcoming budget announcement. Diversity schemes often look at discrimination or focus on protected characteristics such as race or disability. However, the Local Government Association, which represents councils in England, has warned that the focus on diversity is a distraction from the debate over funding.
Calculating the exact amount of money that would be saved by reducing spending on diversity programs is challenging because councils count things differently and do not include all the information in their annual accounts. Conservative Way Forward identified that approximately £30 million is being spent across 397 local councils on these programs. When a Section 114 notice is issued, it confirms bankruptcy of the council. Conservative Way Forward analyzed seven councils that have issued such notices, and their response to the FOI requests varied significantly. Thurrock has not employed anyone on equality, diversity, and inclusion. In contrast, Birmingham, one of the largest councils, has 11 people in various roles, and Nottingham has 4.5 full-time equivalent positions. Birmingham could save £450,374 by axing these roles, while Nottingham could save £154,165.
While these savings sound substantial, it is worth highlighting that these amounts are not significant in terms of overall council spending. As an example, Birmingham Council’s budget was just over £2 billion at the start of the 2022-2023 financial year. This means spending £450,000 on diversity staffing schemes accounted for approximately 0.02% of total spending on services.
It is worthwhile noting that these figures are from 2022, and up-to-date spending figures have not been released. Moreover, there may be other factors to consider, such as spending on diversity training programs that were not identified in the FOIs. Although the numbers appear to be substantial, they may not be enough to alleviate the financial pressures faced by councils
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