Arun District Council looks to slash budget by £3m

The cabinet members agreed on Monday to spend the next four months looking to slash the district council's budget by 3m.

The 15 per cent reduction in net expenditure will take place over the next two financial years '“ 2010/11 and 2011/12 '“ to enable the council to begin to balance its books.

Recommendations for making the savings will be reported back to the cabinet in November.

The decision was agreed unanimously by all seven cabinet members. But Paul Dendle, who is in charge of the council's finance and central services, warned the process would be tough.

"We have to be more efficient as a council and deliver more for less," he said. "As a result of this, there will have to be some sort of

reduction in overall staff totals.

"I agree that cabinet members should be involved in the nitty-gritty budget talks to look at how we can make the council more efficient and come back with the reduction, though some services will have to be diminished, reduced or even deleted."

Council planning boss Ricky Bower said the council owed it to the district's residents to keep down the burden of council tax on their household spending.

"This is the right thing for us to be doing. We have to bear in mind that a lot of people in the district are on fixed incomes.

"Anything we can to do ensure their personal expenditure on council tax is kept to the minimum necessary would be welcomed," he commented.

Roger Elkins, Arun's deputy leader, said: "We should want to explore every opportunity for making savings. That's the key to this process."

Gillian Brown, the leader of the council, stated Arun was starting the cost-cutting from a strong financial position.

She said: "Councils up and down the country are going through the same process. This is a measured approach and we are working on it with the council's officers."

Council chief executive Ian Sumnall said making the cuts over two years from current annual council spending of about 21m was a sensible way to ensure it entered the next decade in good financial shape.

"It is not a knee-jerk reaction," he said. "Nor is it a draconian

measure. This is not going to be easy for you as cabinet members or for the heads of services but it's a way forward which gives some time to consider the options which are available."

Alan Peach, the council's head of finances, warned the cabinet the recession had badly hit Arun's income. Revenues from the sales of council houses and planning functions had slumped, along with interest from its investments.

The support from central government was also likely to be cut in future. Without action, Arun would be forced to take so much money from its reserves to pay for its day-to-day operations it would hit its 2m recommended minimum reserve in five years.

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