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Public Service Funding Crisis: Impact and Solutions

A 28% decrease in council budgets, £7bn unringfenced grants, 16 community budget areas affected, Prudential borrowing costlier, overall capital funding cut by 45%. What does this mean for public services? Find out about the funding gap, frontloading cuts, and the need for radical reform to ensure cost-effectiveness and efficiency in services promoting choice and diversity, including the Big Society initiative.

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Public Service Funding Crisis: Impact and Solutions

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  1. CSR headlines • 28% fall in council (non-school) budgets • £7bn grants unringfenced • 16 community budget areas + rollout • Prudential borrowing retained, but more expensive • Overall capital funding cut by 45% • £700m for a 2011-12 council tax freeze

  2. What does this mean? • An overall funding shortfall that is two to three times as great as that in CSR07 • Frontloading of cuts means that councils expected to find savings in Year 1 that exceed total savings in past 4 years • Conventional transactional savings cannot come close to meeting this gap

  3. The challenge Public services will have to: • cost less • be more effective • promote choice and diversity - and the Big Society? • cost less. Real savings are only available if we radically reform the way public services are run.

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