Toughest cuts in living memory
Some councils will see a reduction in the money they receive from Government of up to 17 per cent next year, council leaders said as Communities Secretary Eric Pickles revealed his finance settlement. Local authority chiefs described it as “the toughest in living memory” as Mr Pickles announced an average spending power cut of 4.4 per cent across England. The Local Government Association said this amounted to a funding shortfall of £6.5 billion next year, and could result in 140,000 job losses. Chairman Baroness Margaret Eaton is quoted: “We have to face the fact that this level of grant reduction will inevitably lead to cuts to services. Councils now face incredibly tough choices about the services they continue to provide and those they will have to cut.”
All papers. LGA councillors appeared on BBC2’s Daily Politics, BBC 5 Live, ITN Lunchtime and evening news, PM Programme, BBC Lincolnshire and BBC Somerset.

Power to the people…to set up banks and run buses
Town halls will be allowed to set up banks and insurance companies to help pay for other council-run services, under proposals outlined yesterday. A new “general power of competence” will be given to councils in the Localism Bill. LGA Chairman Baroness Margaret Eaton is quoted: “Councillors and residents know their areas best and giving them control of planning and housing will help ensure our towns, cities and villages can flourish.”
Telegraph p19, Mail p8

Potholes joined by budget holes
Motorists were warned to expect a pothole blight yesterday as the Government announced details of a 15 per cent cut in the budget for maintenance of local roads. The LGA said drivers had suffered for years due to a lack of government funding for road repairs, with an estimated £9.5 billion of work still to be carried out. Cllr Peter Box, Chairman of the LGA’s economy and transport board, is quoted: “Unfortunately the outlook for motorists is not about to get any better. Local authorities faced with the perfect storm of crumbling roads and a black hole in their budgets are going to have some incredibly difficult decisions to make when it comes to prioritising repairs in a way which best serves their areas.”
Guardian p15, Times p10

LGA Conservative leader criticised for fruit comment
Unemployed northerners should take up the work being done by Eastern European immigrants and pick cherries on fruit farms, a senior Tory councillor has said. David Shakespeare, leader of Buckinghamshire County Council and head of the Conservative group in the LGA, made his comments during an LGA meeting about business rates. He is quoted: “The remarks I made were nothing more than an attempt at a humorous response to another comment. It was not to be taken seriously but I apologise for any unintentional offence it may have caused.”
Times p10, Express p27, Telegraph p5, Mail p28, Sun p2, Independent p16, Star p2 (comment p6), Mirror p23

Gove says schools will get less cash
Some schools are to suffer real terms budget cuts despite a pledge by the Coalition to safeguard their funding. Education Secretary Michael Gove has frozen per-pupil funding and with inflation running at higher than the expected rate many schools will be left out of pocket.
Mail p2

It’s a white Christmas
Britain will have a white Christmas, with Arctic blizzards bringing up to eight inches of snow. Snow will blanket London, the South-east, Scotland, the North and eastern England as bitterly cold winds roar in, weatherman warned yesterday. The LGA said councils had increased their orders of salt supplies to “keep disruption to a minimum”.
Express p1

Spy MP in earnings row
Spy row MP Mike Hancock has broken earnings rules by failing to declare more than £10,000 from a second job. Mr Hancock, whose Russian aide faces deportation over suspicions of being a Kremlin agent, is making £17,000 a year as a cabinet member on his local Portsmouth City Council. He said: “I’ve no excuse. If it’s an oversight it’s my responsibility.”
Mirror p14

Comment: Pickles’ bill is a farrago
David Walker, former communications director at the Audit Commission, writes that if the Government was truly committed to localism it would give councils complete financial autonomy. He also criticises the Localism Bill’s planning reforms for enfranchising nimbys.
Guardian p30Guardian
Times
Daily Mail
The Sun
Telegraph
Financial Times
Daily Express
Independent
Evening Standard
Mirror

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