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A battle is developing between Whitehall departments and local authorities as spending cuts are negotiated. Concern is mounting that local government will end up shouldering far more of the savings burden, while high-spending Whitehall departments with sensitive remits escape hardship. Fears are mounting of a return of old problems, such as cost-shunting, where cash-strapped NHS trusts pushed social care costs on to councils. Council leaders are also challenging changes which could make parts of the public sector unworkable, if reforms go through in their current form. Local government hit back at education secretary, Michael Gove, this week, after he pledged to give schools freedom from local authority control as part of his academies plan. A stark warning came from the LGA that a two-tier education system would develop, unless the right safeguards were in place. The association also warned the only other option to make the plans work would be to create another Whitehall education quango. Dame Margaret Eaton, chairman of the LGA, said the real loser would be the Department of Education. She said: ‘Schools already have considerable independence from local authorities and what academy status offers is more freedom from central government rules, on the curriculum, discipline procedures and staff pay. ‘A share of education money is currently invested in providing services for pupils with special educational needs, and those who are excluded from mainstream education. Councils will be seeking urgent reassurances that disadvantaged children will not lose out.' Mr Gove later rowed back, asking chief executives and council leaders to offer up their ideas on how to tackle the deep-rooted problems in the education system. But real anger has been raised by the initial £6.25bn budget savings announced by chancellor, George Osborne, and treasury chief secretary, David Laws which spared the Department for Work and Pensions (DWP) and the NHS. One senior local government source told The MJ: ‘A lot of the workload is delivered by local authorities – education and social care are a prime example, together with the jobs programmes that eased communities through the worse of the recession. ‘The idea that the NHS and the DWP can continue with inefficient working and protected headcounts is a non-starter, if we're serious about this.'

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WHITEHALL

Local government fears it will bear brunt of savings burden

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