Faced with cuts, Newcastle is fighting for fairness

The leader of Newcastle City Council calls for more honesty and openness in local government funding.

This piece is a response to Andrew Hankinson's blog post, "Nick Forbes: Newcastle’s king of cuts"

Last 20 November was the day when the government’s austerity programme turned from a theoretical national debate into a stark reality for the people of Newcastle. £90m of council cuts over three years, affecting every aspect of public life across the city. I described it as one of the darkest days for public services in Newcastle.

Residents have been shocked. Protesters fighting the closure of 10 of our libraries have accused me of being a Tory poodle, doing the work of David Cameron in a concerted attack on local services. The fact that some of the cuts affected our local cultural institutions pushed us into the national press. I received letters signed by a who’s who of the geordie cultural diaspora: Sting, Bryan Ferry and Robson Green to name a few. Writer Lee Hall is turning a legitimate and welcome campaign against cuts to arts and culture into an increasingly personal campaign against me. The local Liberal Democrats join with Eric Pickles in accusing me of deliberately exaggerating the cuts in order to pass the blame onto government and of megaphone diplomacy. I have been likened to militant firebrand Derek Hatton, who famously defied the Thatcher government by setting an illegal budget. Earlier this month, in a blog post for the New Statesman, Andrew Hankinson leapt on that particular bandwagon, accusing me and the council’s director of finance of making deliberate arithmetic errors to overstate the scale of the cuts for political reasons.

All this talk of politically motivated over-statement of cuts is a ruse to hide the real scandal. The figures are right. They are the inevitable consequence of decisions made in Whitehall and Westminster, not in Newcastle Civic Centre. Newcastle has been honest about the scale of the cuts facing not just our city but communities across the country. And the cuts have been deliberately and systematically loaded  against those communities least able to withstand them.

Unlike most councils, we set our budget for three years instead of the usual one or two. We did this for good reasons. The old method of annually 'salami slicing' budgets was no longer adequate. We needed to take a good hard look at what the council does, and plan over the longer-term. A three year budget gives us more scope to make radical changes. And more time to work with communities and partner organisations to find alternative solutions to avoid closure of the most valued facilities and services, and more time to minimise job losses by helping staff to retrain or redeploy.

But creating a three year budget has been a fearsome task, because it’s exposed the enormity of the challenge facing the whole of local government. We were among the first councils to look in detail at the consequences through to 2016. Since we published our budget, other cities have issued very similar proposals. Liverpool has to save £173m by next year; Leeds, £51m next year; Manchester, £80m by 2015 and Birmingham, £600m by 2017. Councils have cut £5bn and shed 230,000 jobs over two years with some of the deepest cuts yet to come. We are not the only council that is considering closing libraries and cutting funds to the arts. The Conservative-controlled Local Government Association has gone even further in spelling out the consequences of cuts to 2020, by which time local government will have no money left to fund any services beyond its core statutory functions.

And what of the argument that I was exaggerating the cuts back in November? Just before Christmas the government announced a further round of cuts, and our £90m cuts requirement became £100m. So it turns out we were actually under - rather than over - stating the scale of the challenge.

And the greatest scandal of all lies in the judgments made in central government about where these cuts should fall hardest, and how they are hidden in a fog of complex and opaque adjustments and misinformation. The government is making systematic decisions to move the deepest cuts to areas with the highest levels of social and economic need. The five councils with the highest levels of multiple deprivation, on the government’s own figures, are the same five councils facing the highest levels of cuts. During the four years of the Spending Review, £1bn will have been transferred from the North to the South and East, with some inner London boroughs also amongst the worst affected. Millions more have been transferred to shore up the inefficient system of local government in two-tier shire counties.

We need a new approach to restore trust to this broken system. I have led the call for an independent approach to determining the allocation of local government budgets, accountable jointly to local and national government.

In the meantime, I will get on with the job of supporting and improving our city. I will resist the calls for my colleagues to set an illegal budget, to defy the government in the way that Liverpool did in the 1980s. I will maintain constructive relations with ministers, for example with Greg Clark on the delivery of our Newcastle City Deal, and Patrick McLoughlin about the need for investment in transport infrastructure. But what I cannot do is join in a conspiracy to hide the consequences of unfair and unsustainable cuts. I will be honest about the implications for our great city, open to alternative proposals, work day-in, day-out to preserve the services that people have a right to rely on, and continue to fight for a fairer future. I hope the government, too, can bring a bit of honesty into its own decisions.

Nick Forbes is the leader of Newcastle City Council

Nick Forbes is the leader of Newcastle City Council

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French voters face a choice: Thatcherism or fascism

Today's Morning Call. 

Francois Fillon has been handed the task of saving France from a Marine Le Pen presidency and, by extension, the European Union from collapse, after a landslide win over Alain Juppé in the second round of the centre-right Republican party primary, taking 67 per cent of the vote to Juppé's 33 per cent. 

What are his chances? With the left exhausted, divided and unpopular, it's highly likely that it will be Fillon who makes it into the second round of the contest (under the French system, unless one candidate secures more than half in the first round, the top two go to a run off). 

Le Pen is regarded as close-to-certain of winning the first round and is seen as highly likely to be defeated in the second. That the centre-right candidate looks - at least based on the polls - to be the most likely to make it into the top two alongside her puts Fillon in poll position if the polls are right.

As I explained in my profile of him, his path to victory relies on the French Left being willing to hold its nose and vote for Thatcherism - or, at least, as close as France gets to Thatcherism - in order to defeat fascism. It may be that the distinctly Anglo-Saxon whiff of his politics - "Thatcherite Victor vows sharp shock for France" is the Times splash - exerts too strong a smell for the left to ignore.

The triumph of Brexit in the United Kingdom and Donald Trump in the United States have the left and the centre nervous. The far right is sharing best practice and campaign technique across borders, boosting its chances. 

Of all forms of mistake, prophecy is the most avoidable, so I won't make one. However, there are a few factors that may lie in the way of Le Pen going the way of Trump and Brexit. Hostility towards the European project and white  racial reaction are both deeply woven into the culture and politics of the United Kingdom and the United States respectively. The similarities between Vote Leave and Trump are overstated, but both were fighting on home turf with the wind very much at their backs. 

While there's a wider discussion to be had about the French state's aggressive policy of secularism and diversity blindness and its culpability for the rise of Le Pen, as far as the coming contest is concerned, the unity of the centre against the extremes is just as much a part of French political culture as Euroscepticism is here in Britain. So it would be a far bigger scale of upheaval if Le Pen were to win, though it is still possible.

There is one other factor that Fillon may be able to rely on. He, like Le Pen, is very much a supporter of granting Vladimir Putin more breathing space and attempting to reset Russia's relationship with the West. He may face considerably less disruption from that quarter than the Democrats did in the United States. Still, his campaign would be wise to ensure they have two-step verification enabled.

A WING AND A PRAYER

Eleanor Mills bagged the first interview with the new PM in the Sunday Times, and it's widely reported in today's papers. Among the headlines: the challenge of navigating  Brexit keeps Theresa May "awake at night", but her Anglican faith helps her through. She also lifted the lid on Philip May's value round the home. Apparently he's great at accessorising. 

THE NEVERENDING STORY

John Kerr, Britain's most experienced European diplomat and crossbench peer, has said there is a "less than 50 per cent" chance that Britain will negotiate a new relationship with the EU in two years and that a transitional deal will have to be struck first, resulting in a "decade of uncertainty". The Guardian's Patrick Wintour has the story

TROUBLED WATERS OVER OIL

A cross-party coalition of MPs, including Caroline Lucas and David Lammy, are at war with their own pension fund: which is refusing to disclose if its investments include fossil fuels. Madison Marriage has the story in the FT

TRUMPED UP CHARGES?

The Ethics Council to George W Bush and Barack Obama say the Electoral College should refuse to make Donald Trump President, unless he sells his foreign businesses and puts his American ones in a genuine blind trust. Trump has said he plans for his children to run his businesses while he is in the Oval Office and has been involved in a series of stories of him discussing his overseas businesses with foreign politicians. The New York Times has detailed the extentof Trump's overseas interests. 

TODAY'S MORNING CALL...

...is brought to you by the City of London. Their policy and resources chairman Mark Boleat writes on Brexit and the City here.

CASTROFF

Fidel Castro died this weekend. If you're looking for a book on the region and its politics, I enjoyed Alex von Tunzelmann's Red Heat, which you can buy on Amazon or Hive.

BALLS OUT

Ed Balls was eliminated from Strictly Come Dancing last night, after finishing in the bottom two and being eliminated by the judges' vote.  Judge Rinder, the daytime TV star, progressed to the next round at his expense. 

AND NOW FOR SOMETHING COMPLETELY DIFFERENT

Helen reviews Glenda Jackson's King Lear.

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Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to British politics.