Councils consider challenge to settlement on grounds of equality

Authorities could band together to challenge the local government finance settlement for breaching equality legislation, according to the president of the Society of Unitary Treasurers (SUT).
Speaking at a Local Government Association finance conference earlier this week, delegates discussed whether councils faced a “crunch year” in being able to continue funding services next year, following central government cuts.
SUT president Dave Kempson, head of finance at Luton Borough Council, said those councils hardest hit by the cuts could consider the possibility of challenging the settlement.
He said: “I do expect some councils in 2015/16 to have difficulties in providing all of their statutory services.
“When you look at the reductions, there is a correlation of those reducing most and their ethnicity and other equality profiles.
“Is an authority or group of authorities going to consider challenging them on the grounds of equality issues either this year or next year?” He asked.
Also speaking during the debate, Peter Stuart, vice president of the Society of District Council Treasurers and head of finance, ICT and HR at Mid Sussex Council, said that 2015 would not necessarily be a crunch year for all councils.
He said: “However, it does depend where you sit. Constraints on tax and growth vary in every council. Those in the South East have a relatively larger New Homes Bonus and tax base and it is growing.
“Councils in the North are very dependent on revenue support and very few homes are being built.
“There is an in-built inequality in the system which will have to be addressed.”
Duncan Whitfield, president of the Society of London Treasurers and strategic director of finance and corporate services at the London Borough of Southwark said that many inner city London councils were facing impacts as acute as in the north of England.
He said: “When we hear about some of the horrifying, shocking cuts in Newcastle, where there is an impact more acute than anywhere else in the UK, there are parts of London which are suffering the same levels.”
And he said that although his borough was “doing well” out of New Homes Bonus, the receipts are now funding revenue services, so that any change to the regime could hit services.
Chris West, director of finance and legal services at Coventry City Council added: “Most metropolitan councils will face a cliff edge in their finances in 2015/16 or the year after, depending on where they started.”

NB: Article updated at 2014/01/10 16:20 further to Dave Kempson’s comment below.