Title

The credit crunch has forced under-pressure councils to assume yet more responsibility for residents threatened with job cuts and soaring costs. Bradford City Council moved to allay fears of local job cuts at Bradford & Bingley, after the bank was part nationalised. The council is working with Yorkshire Forward, the regional development agency, to retrain any staff laid off. The council and RDA are also working with neighbouring Calderdale and Leeds to prop up the vital financial services sector in the region. Other major banks are based locally, including HBOS, which was the subject of a recent buy-out. Officials from Yorkshire Forward were due to attend a meeting between Yorkshire MP, Rosie Winterton, and chancellor, Alistair Darling, on 1 October, at which they would seek government assurances that local jobs would be safeguarded. A Bradford spokeswoman said: ‘What we undertake subsequently to help our residents through the credit crunch will depend on the outcome of that meeting.' Meanwhile, Liverpool City Council is poised to provide bridging loans to first-time buyers struggling to get on the property ladder. The scheme will allow new owners to top up loans from mortgage lenders, which have been offering reduced loans throughout the downturn. The council is in discussions with the Housing Corporation and North West Development Agency over funding. Meanwhile, Kent CC could be forced to delay major capital projects, because asset sales are likely to raise £40m less than expected this year. Ellie Greenwood, LGA senior policy consultant, said: ‘Councils are undoubtedly being hit hard. Rising fuel and energy costs are putting significant pressure on budgets, capital receipts are slowing down, and income from charges such as development control and property searches is falling.'

Title

FINANCE

Councils step in to help credit crunch job victims

SUBSCRIBE TO CONTINUE READING