THE SPENDING REVIEW - its impact on Yorkshire
2:28pm 20th October 2010
(Updated 5:08pm 20th October 2010)
The Chancellor received cheers from Tory and Lib Dems MPs when he began his speech and set out his focus.
Lets get straight into the details that effect you, our listeners.
Starting with the police.
Police spending will be reduced by 16% over the next four years.
The North Yorkshire force says although we can take this as a broad indicator, we anticipate that this will be more in the region of 20% when a number of funding factors are taken into account. We know that Central Government police funding will reduce by 20% in real terms by 2014-15.
However, we will not reach a definitive position regarding the funding for North Yorkshire Police until mid-December 2010.
There are three key “unknown factors” at this time:
1) The Home Office has several components and they may decide to apply different levels of spending cuts to each of the agencies they are responsible for.
2) We do not know whether the levels of cuts will be uniformly applied to each police force. The funding allocations for individual forces will not be announced until early December.
3) The timing of reductions and whether this is applied evenly across the years has yet to be confirmed.
As outlined earlier this week on Minster FM, the force has already begun to restructure the force. Police staff have been offered voluntary redundancy.
Regional hubbing also seems an option. North Yorkshire Police also says its actively working with the other three forces in Yorkshire and the Humber. They have begun to deliver some services regionally, and will continue to explore and actively pursue further opportunities.
North Yorkshire Police Authority Chairman, Jane Kenyon, said:
“Thankfully, for the last decade, North Yorkshire Police Authority has worked hard to build financial stability for North Yorkshire Police. Our focus on this has yielded dividends. Our reserves position is healthy and our asset base is strong, due to a consistent and managed programme of re-investment. In addition, we have been preparing the organisation for expenditure constraints for some time, by developing our approach to joint working with other police forces and internal restructuring.
“So, the way we have run the business over the last 10 years means that we are better placed than most, we think, to tackle the storm. I am not saying that it will be easy – far from it – and certainly towards the latter end of the four year term, the cuts will start to bite hard. However, the Chief Constable and the Authority are committed to steering North Yorkshire Police through this with the least possible impact on overall operational effectiveness.”
Chief Constable Grahame Maxwell said:
“The scale of cuts announced by the Chancellor means that we will need to deliver policing services differently in the future. It is important to remember that there are a range of wider factors which have the potential to impact on how we approach this. These include a reduced ability to raise local funding and the way other partners respond to the impact of the Comprehensive Spending Review on their respective service areas.
“One thing that remains clear at this time is that we will have to operate with a smaller workforce. However, North Yorkshire Police are committed to protecting frontline service delivery as far as we possibly can.
“We launched a voluntary redundancy scheme on Monday 18 October 2010. This gives police staff the opportunity to reflect on their position and to consider if now is the right time to apply to leave the organisation.
“The next few years will be extremely challenging for North Yorkshire Police, but I am confident that the work we have already undertaken and the plans we have in place will ensure North Yorkshire continues to be one of the safest counties in England, and that we deliver the best policing service possible.”
Firefighters in North Yorkshire say they are concerned at plans for up to £4 million to be saved over the next four years.
That could amount to 140 staff losing their jobs.
In Humberside, Kevin Wilson, Director of Finance at Humberside Fire & Rescue Service said:
"A cut to our budget was inevitable as the government is looking to make savings across the public sector. From the statements made by the Fire Minister in the summer, when the emergency budget was announced, we have been working on the assumption that we will see cuts in our budget of up to 25 per cent, which equates to £7m. The announcement today confirms that we were probably right with our assumption and that the savings will need to be achieved by 31 March 2015. This will be confirmed in December when we are notified of our funding."
The Humberside Service will not know until December the percentage reduction in each year and whether 25 per cent is a flat rate reduction across all Fire and Rescue Services.
For those of you with kids.
Suprisingly Child Tax Credit will go up by £30 next year and £50 the year after.
There will be no further changes to child benefit other than that already mentioned about it being withdrawn for higher rate tax payers.
Now transport and interesting news for us in Yorkshire...
So the M62 is going to get widened.
On to the NHS.
They'll be £20 billion in savings year on year in the health service.
But as the Chancellor took with one hand he gave with the other.
A new cancer drug fund will be established that'll fund projects that the watchdog NICE deems to expensive.
George Osbourne also said £220 million will go into medical research.
Informtaion for small businesses.
If you rely on internet connections it's about to get better in North Yorkshire.
They'll be an increase in money for schools the budget will go up by 4 billion to 39 billion.
£15.8 billion will also be spent on refurbishing schools.
For pensioners, the Winter fuel payments will stay
But the state pension age will rise to 66 in 2018.
Will Mowat's a financial Advisor in York, he's spoke to Minster FM about the impact this will have.
You'll be happy to hear in York that free entry to museums and galleries will remain in place.
OTHER DETAILS - in brief
George Osbourne said "We have the largest structual deficit in Europe. To back down now, would be taking the road to economic ruin"
Next year they'll be £651bn (2011/12) in Goverment spending. The following year that'll rise to £665bn because of of inflation, previous comittments and debt.
General reductions on capital spending willl decrease year on year to £47bn by 2014/2015.
Debt interest payments down to £63bn by 2014/2015.
Public Spending back to the level as back in 2008.
Office Costs, Quangos, Adminsitration and overall Whitehall savings of £6bn.
490,000 jobs to go in the public sector over the next 4 years.
Cabinet Office Budget cut by £55m.
Royal household spending down 14%.
They'll be a massive devolution of financial control. Overall savings in council funding 7.1% for 4 years.
Overall Treasury budget reduced by 33%.
Total of £2bn extra for social care.
Extra £4.4bn of capital for social housing.
Foriegn office debt down by 24%.
Police Spending down 4% a year.
Ministry of justice budget cut by 7bn by 2014/2015.
MOD budget cut to £33.5bn in 2014/2015.
Permanent levy on banks and must implament a code of practice - legislation published tomorrow.
Home Office budget will have average savings of 6% a year.
HMRC savings of 15%.
State pesion age to rise to 66 in 2018
Public sector pension contributions to rise.
Final salary pensions for MPs to end.
Single universal credit to be created -Extra £2bn to help implement it!
Welfare budget will make savings of £7bn a year.
Child tax credit up by £30 next year, £50 by the year after.
No further changes to child benefit, other than the withdrawal for higher rate tax payers already annouced.
Winter fuel payments to stay.
Health spending to be £114bn by 2014.
NHS Savings of £20bn a year.
New cancer drug fund established.
Free TV licences for Over 75s to remain, along with Free eye tests and free bus passes.
£1.5bn to Equitable life policy holders.
Dept for Business Budget cut by £400m, cut by 7.1%.
Train to gain programme abolished.
Maintain the post office.
Science Budget Protected.
£220 million to go to medical research.
£200 million to go to Green Energy.
Green investment bank to be set-up - £1bn set aside.
Financial investments into adult apprenticeships.
Defra to make savings of 8% a year.
Free entry to museums and galleries.
BBC to pay for world service and make 16% savings - Licence fee to be frozen for 6 years - Reduce online spend and support local radio and papers.
£30bn investment to transport - M62 to be widened and extended
£500m to refurbish Tyne Metro, plus train tracks across North Yorkshire will get an overhall.
M25 to be widened.
Crossrail to go ahead.
Increase in money for schools - Budgets up £4bn to £39bn
Sure Start Scheme Protected.
Education savings of 1% a year.
£15.8 billion, refurbish schools.
Total Government cuts to be 19% over 4 years.
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