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As we are all aware, a lot of public sector activity is focused on helping the country and local areas beat the impact of the credit crunch. Expectation from central government is high that activities such as regeneration will help provide the ‘seeds of recovery'. So, how is central government responding to provide the right environment to invest in? Well, on the face of it, the recent announcement to confirm the Comprehensive Spending Review 2007 – while expected – has done little to help the cause, particularly for districts. However, the inference of further efficiencies being created shows a real gap in the Government's knowledge. Many councils are facing a potential funding crisis, which may inhibit the ability to carry out basic services. More ‘efficiencies' will probably mean more cuts. Many colleagues tell me, they are facing the most significant budget deficits on record, at a time when demands on services are rapidly increasing. Issues include loss of investment income due to recent and proposed reductions in interest rates, and greatly-reduced income from land charges, planning applications and car parking. Barely a day goes by without another announcement of local job losses. Is this a time for panic or knee-jerk reactions? Obviously not. While it is evident most of us are facing a reduced staffing base in the short term, these changes give an opportunity for creativity, and to prepare financial plans which do not rely on income gained in the current year. What an opportunity to share knowledge, experience and learning, collaborating with like-minded councils to meet common challenges. Was there ever a greater need to improve our communications with staff, the public and partners? We must get our message across, and listen well to understand what others' situations are. It is uncertain if Whitehall mandarins understand the current local government environment. We have to reinforce again and again that government initiatives are not always priorities, they are ‘nice to dos' in the main, when resources are available. Unfortunately, it may take the widespread announcement of thousands of local authority job losses to create that understanding, coupled with targets not being met. Very difficult decisions are facing us all, but we must lead the way by providing the Government with cogent options on how it can help us to help it. Then, and only then, will we be able to get out from between those rocks and hard places, we currently find ourselves in. Paul Lankester is chief executive of Stratford-upon Avon DC

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WHITEHALL

District View

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