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The current British government is seeking to cut spending by local authorities on their public services relative to 2009/10. What arguments might local authorities make against such cuts - Essay Example

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The issue of global recession has also affected practices and policies of the British government, which is one of the most stable and sound administrative bodies of the world. Stats show that the inflation rate in UK has been consistent over the last decade and that has changed…
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The current British government is seeking to cut spending by local authorities on their public services relative to 2009/10. What arguments might local authorities make against such cuts
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Extract of sample "The current British government is seeking to cut spending by local authorities on their public services relative to 2009/10. What arguments might local authorities make against such cuts"

Download file to see previous pages These reductions include health planning budgets, building new schools and pension budget of local authorities. The questions of whether these reduction policies will bring economic growth or will push thousands of people below the line of poverty and in public service degradation are highly debatable. This paper will aim to focus on the impact of these reductions on local authorities and issues which might be raised in against these spending cuts policies.
The incentive of the British government to boost national economy by cutting spending on local authorities does not seem to be an effective measure. The UK’s GDP analysis of the past four years shows that the recession in the state has remained consistent over the past years. Many economists believe that public and local authority’s funds cutting can be beneficial if the state is economically stabilized. However, in the era of recession when private sectors are not willing to take over the government sectors, than this could result in raise of unemployment and inflation in the state countries (Pettinger, 2010). The key argument that can arise in local authorities is the decrease in their monthly wages and worse job loss, by cutting the spending of local authorities. In the developed countries of England, Scotland and the Northern Ireland the rate of unemployment has already reached above 10% and this is anticipated to grow in the coming years (Ryan, 2012). The criticism of local authorities on the spending framework of the government can be justified by these disappointing facts (Ryan, 2012).
The British government has divided their public spending budget into departmental expenditure limits (DEL) and annually managed expenditure (AME). This division method is adopted to better manage and control departmental spending of the state. Spending of local authorities, public health and education and Municipal Corporation spending are all included in the ...Download file to see next pagesRead More
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