Credit crunch crisis may hit Worthing Council services
WORTHING Council may have to cut services if the credit crunch fall-out puts more pressure on its finances.
Paul Yallop, cabinet member for resources, told the Herald this: "We have already identified a major deficit of 930,000.
"We are looking at a package of efficiency savings, and there may be more need to look at low priority services.
"We are trying to keep the impact on front-line services to a minimum."
Cash deposits
Asked if the crash in share values had affected the borough's finances, Mr Yallop replied: "Most of our deposits are cash deposits.
"We have treasury management consultants, and we are obviously reviewing these deposits."
Mr Yallop also said he was not aware the current crisis threatened any of the council's projects to develop the town's attractions and business base.
West Sussex County Council says the shares crash will not affect next year's council tax demand.
Market turmoil
Louise Goldsmith, the county council's cabinet member for finance and resources, told the Herald: "The county council is not immune from the turmoil in markets and the downturn in the economy.
"Increased inflation, particularly in energy prices, is an extra burden and any general increase in prices and feed-through to wage increases would have a serious impact on the county's services.
The current stagnation in house building is hitting projected council tax revenues and a tax base that is not increasing as quickly as anticipated means that any level of council tax raises less revenue to fund services."
Asked about the effect on the local authority pension fund, Ms Goldsmith said: "The current falls in the stock market affect the value of the pension fund today, but will have no impact on council tax in the coming year.
Pension contributions
"Pensions are a long-term business and markets will recover from the current volatility.
"The next valuation of the pension fund affecting employer contributions (and therefore council tax) will not take place until March, 2010, and come into effect in April, 2011, by which time markets could have recovered significantly from current levels.
"One symptom of the credit crunch has been higher interest earnings on the county council's cash deposits with banks, which goes some way to off-setting cost increases.
"In terms of council tax for next year, the county council is committed to minimising any increase, well aware that the difficult financial outlook is affecting all our residents.
"Like everyone else, the county council will have to cut its cloth to fit the current circumstances."
-------------------------------------
Click here to go back to Worthing news.
Where are you? Add your pin to the Herald's international readers' map by clicking here.
Email the Herald: letters@worthingherald.co.uk
Click here for the Herald staff directory.
Want to read this page in French, German, Spanish, Portuguese, Urdu or 48 other languages? click here for Google translate.
Email to a friend
Print this page- Severe weather warning for ice in East Sussex issued by Met Office
- Snow, ice and sub zero temperatures as Met Office issues severe weather warnings for East Sussex
- KPMG appointed as Peacocks administrator
- East Sussex on high alert for severe cold weather this week
- ‘Be prepared’ for snow in East Sussex warning
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Lewes
Saturday 04 February 2012
Today
Sunny spells
Temperature: -1 C to 2 C
Wind Speed: 16 mph
Wind direction: South east
Tomorrow
Cloudy
Temperature: 0 C to 4 C
Wind Speed: 8 mph
Wind direction: South
