Southwark Leader's budget principles

On October 20 the Government will decide how much money councils receive over the coming years. The Chancellor has threatened cuts in funding of at least 25 per cent . If this happens, this would have a hugely significant impact on local residents, businesses and visitors.

In January and February next year the council's cabinet and then the council assembly will make a decision on a budget for 2011/12.

With these seven principles, which seek to limit the impact on the most vulnerable, Councillor Peter John, Leader of Southwark Council, hopes to lay the foundations for a budget which will help create a fairer future for all residents of the borough.

The proposed principles will be discussed at the cabinet meeting on 21 September. Read the cabinet report.

The principles

1. At a time of unprecedented cuts proposed by central government, the 2011 Southwark budget should continue to prioritise the commitments made by the cabinet at its first meeting as a new administration in June and its vision to create a fairer future for all by promoting social and economic equality in an economically vibrant borough.
   
2. We recognise that some services currently provided by the council may be lost, and some may change. However, we will do all that we can to protect our front-line services and support our most vulnerable residents.
   
3. We will ensure that the services which the council delivers provide value for money, value for council tax payers and contribute towards delivering our vision of creating a fairer future for all in Southwark.
   
4. We will explore alternative ways of providing a service prior to proposing any cut or reduction. This will include talking to partner organisations, the voluntary sector, the trade unions, the business community and other local authorities.
   
5. We will be transparent with any specific group or groups of users who may be affected by any cut or reduction in service provision as soon as possible and explore with them other ways to provide the service. We will conduct an equalities impact assessment for our budget proposals.
   
6. Before proposing any cut or reduction we will have a clear and comprehensive explanation for why that service should be cut, reduced or no longer provided by the council, and this explanation should be capable of being subject to robust challenge.
   
7. Budget proposals should be based on a three year approach and should have regard to innovative ways of providing services and maintaining employment in the borough.

Speaking ahead of the cabinet meeting, Councillor John said: "There are huge financial challenges ahead, but our aim is a budget that will help create a fairer future for all by promoting social and economic equality in a vibrant borough.

"The principles are the crucial first step in us achieving that aim; they will underpin all the work we do as we prepare for and respond to the government's spending review and set in train the budget process.

"We will not be able to create a fairer future by acting alone or by simply doing things as we have always done them before.

"We will work with residents, businesses and partners to come up with imaginative, innovative ideas to transform public services for the people of Southwark."

In June Southwark Council's cabinet agreed its vision for the borough.

At a cabinet meeting in July, cabinet member for resources Richard Livingstone confirmed that the council faced in-year cuts of £5.1m and was anticipating cuts of 25 per cent to its budget or approximately £76m over the next three years. Read the cabinet report

At the meeting the cabinet agreed:

• That the finance director be instructed to ask strategic directors to identify savings of 25% over the three years 2011/12 - 2013/14 in line with the public sector spending cuts.
  
• That the finance director be instructed to put together plans for approval by the leader and cabinet member for finance and resources, for public consultation in the autumn on the impact of the emergency budget over the next four years on the council to seek the community's views on their priorities for services and savings.