Amidst the endless cut and thrust of Darlington politics, a clear theme has been running since 2010 - the challenge of meeting the horrendous cuts to the Local Authority budgets imposed by the Coalition, and the impact on services in the Borough.
The unfairness of how these cuts have been apportioned - with the North East and metropolitan areas suffering most - has been widely commented. For a small unitary authority like Darlington, however, the cuts are particularly tough. The Council has had to go back to the drawing board, and look at every single service it provides. With the so-called Statutory services (the ones the Council has to provide by law, such as Adult and Children's care) accounting for such a significant prpoprtion of DBC's budget, other provision, such as Street Scene, leisure and the arts inevitably have come under massive pressure.
So amidst the accusations and anguish as the Council has taken really tough decisions about the Arts Centre, or Street Scene, or indeed the Market toilets, it's easy to forget the global figures that are driving these decisions in the first place. So to set the context, here are some of the key statistics that explain not only whey the Council has cut so hard, but the enormity of the decisions to come...
(1) Since 2010 when the Coalition came into being the Council will have had its government funding reduced by £21.1m by 2015/16. This is a cash reduction which is equal to a real term reduction of £31.6m when inflation is taken into account, or 39%.
(2) By 2019/20 the reduction in grant is projected to be £29.2m in cash terms and £48.1m in real terms, a real term reduction of 54%.
(3) The real term loss of £31.6m by 2015/16 in significant in the context of DBC's anticipated net revenue budget for 2015/16 of £80.1m
(4) Due to the loss of government funding the Council has reduced annual spending by £25.6m between 2010 and 2014/15 and has plans to deliver a further £10.6m in savings by the end of 2016/17. Between 2016/17 and 2019/20 a further £10.341m of reductions will be necessary.
(5) Budget reductions have meant the loss of 564 posts, comprising of 198 compulsory redundancies, 224 voluntary redundancies and 142 deleted posts.
(6) Over 60% of the net budget is spent on social care.
Senior Management Costs
(a) In 2010 the Council had 24 Directors and Assistant Directors
(b) In 2014/15 DBC has 14 Directors and Assistant Directors, and has taken responsibility for Public Health during that period, representing a net reduction of 11, or 46%.
(c) Assistant Directors have had a pay freeze for 5 years, in 2014/15 they will receive a 1% rise.
(d) Directors and the Chief Executive have had a 6 year pay freeze up to 2014/15.
(e) Some Assistant Directors and Directors have had incremental progression within their grades during this period which is exactly the same as for all staff.
(f) Restructures of Senior Management have led to new amalgamated jobs being created so during the period some Assistant Directors as individuals may be paid more than 5 years ago because they have a new larger job.
(g) Over the 5 years since 2010 an estimated £2.7m has been taken out from the cost of management
Key DBC HR Facts
(a) Total Pay bill 2013/14- £48.5m
(b) Average salary 2013/14 - £23,885
(c) Number of employees (excluding schools) at March 2014 – 2,158
(d) Number of full-time staff (excluding schools) at March 2014 – 1,557
(e) Percentage reduction of full-time staff since 2010 – 33%
(f) Percentage of staff living in Darlington - 62%
(g) Senior management costs as a % of gross budget - 0.77%
I fully appreciate that it's difficult to understand why services are being remorselessly cut when Council Tax is going up, or why some big salaries at the top of the management tree get attention at a time of austerity. I hope these figures give a more complete picture.