
Milton Keynes Council agrees 4.99% tax rise and warns of cuts
A council leader has warned of "greater challenges ahead" after his authority agreed a council tax rise of 4.99% from April.Labour's Pete Marland confirmed Milton Keynes City Council needed to impose the maximum increase possible without a referendum "just to get anywhere close to balancing the budget".He said the authority would also have to make savings of £20m to balance its books and further cuts of "at least £32m" in the next three years.Councillors also voted through plans to cut about 100 jobs, although some staff will be redeployed into new roles in adult social care or children's services.
The council has made savings of more than £200m in the last 15 years with more than two-thirds of its budget now spent on care and support for vulnerable children.The authority said it would need an extra £8m to pay for more residential placements for children with complex needs, and £6m to support vulnerable adults. The number of children being taken into care or needing support has also added over £13m to its financial pressures.The council, which has a budget of £286m, said it would continue weekly black bin collections but would introduce a charge for residents who want a second green bin.Marland said a balanced budget was "only possible because of difficult decisions taken... due to a £10m overspend in children's services and the 6% uplift in government funding from the Labour government".He said: "The cost of adult social care and children's care and temporary accommodation are rising and putting this council in a perilous financial position."He added: "We will have to rethink how many of the services are delivered by this council and the authority will not look the same in five years time, regardless of who is in charge."Liberal Democrat opposition leader Jane Carr said: "I have said many times we are in a crisis and we saw it coming. "We could have predicted it but, nevertheless, the shock when it came has derailed even our new government, leaving many councils across the country with hopes for change dashed."She added: "It is what comes next that really bothers me, for I fear it is already too late to save some of our services, particularly non-statutory."The Conservatives, lead by group leader Shazna Muzammil, voted against the budget.She claimed it "falls short of supporting our young, supporting our elderly and supporting our most vulnerable"."The financial mismanagement on display is unacceptable and comes at a significant cost to our taxpayers," she said.
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Times
28 minutes ago
- Times
Labour must get a grip or its entire economic plan could unravel
Twelve months on from Labour's general election landslide, it is a good time to ditch the slogans and soundbites — and I am afraid there will be plenty of those this week — and assess what the latest economic data says about Labour's stewardship of the economy. From my standpoint its record is neither disastrous, nor dazzling. There is a credible argument that things could have been considerably worse given the structural challenges inherited from the Conservatives. Yet a series of policy missteps have needlessly sapped momentum. In essence, Labour's first year has been defined less by a transformative economic mission and more by steady progress, punctuated by damaging miscalculation. To give credit where it is due, this government appears to be learning on the job. But it is also true that there has been a lot to learn from — unforced errors on welfare reform, labour market policy and the management of the public finances have blunted early optimism among the UK business community. A persistently tricky international backdrop has not helped either. Let us begin our assessment with GDP — that most central, yet blunt, measurement tool. Growth in GDP since Labour entered office in July last year has not collapsed, nor has it accelerated meaningfully. On an international comparative basis, the UK has largely tracked the G7 average, growing by a compound 0.8 per cent in US dollar terms across the last three quarters. GDP per capita, a more revealing metric of national wellbeing, has risen by a modest 0.3 per cent. This is an improvement after two years of declines, but hardly a stirring renaissance. Inflation remains central to household perceptions of the government's economic competency, and its record here is mixed. Headline inflation peaked at more than 11 per cent well before Labour took power and has markedly softened since. However, the core problem, quite literally, lies in 'core inflation' which remains stubbornly high at an annualised 3.5 per cent. Above-inflation increases to the national living wage and public sector pay have added volatility to service prices just as the Bank of England was seeking calm. April's spike in consumer price inflation, though partially driven by regulated costs like air fares and energy levies, has muddied the water for monetary policy. This dissonance — between a government talking up interest rate cuts and simultaneously fuelling wage pressures — has not gone unnoticed at the Bank. We should be wary of attributing lower interest rates as the fruit of government policy. They are being delivered despite it. Turning to fiscal policy and the record is equally chequered. While the cost for the UK government to borrow for ten years — the ten-year gilt yield — has held steady in nominal terms, the interest rate spread that the UK pays compared with its G7 peers has widened to a worrying 1.25 percentage points. This reflects heightened debt issuance pressure after the October budget, and market suspicion about the UK's long-term fiscal sustainability. If rebellious Labour backbenchers think this arithmetic magically improves with a change of chancellor I have some bad news for them. The financial markets see Rachel Reeves as considerably more credible than the vast majority of alternatives within the Labour parliamentary party. Against this backdrop the autumn budget now looms large. Having left herself just £9.9 billion of headroom against her primary fiscal rule back in March, the chancellor now faces slippage on multiple fronts. Public sector borrowing has risen faster than forecast. The headwinds from U-turns on welfare reform and winter fuel payments threaten to eat into nearly half of the existing cushion. Visa reforms that suppress labour force growth and murmurings about the two-child benefit cap could further erode fiscal wriggle room. And the private sector is signalling unease with what is to come on tax. Since the general election, both deposits and the household savings rate have risen. This looks like a quiet vote of no confidence in the economic outlook and shows that speculative fiscal noise has a real cost: muted consumer spending, and deferred investment. But Labour's biggest headache is that it has sowed itself problems in the jobs market. Payroll employment, once a bright spot, has stalled since July 2024. Critics rightly argue that employer national insurance increases, combined with expanded employment rights and minimum wage hikes, have depressed hiring appetite. Two caveats are worth considering. First, payroll data may understate real employment if more workers are now classifying as self-employed to avoid higher employer contributions. Indeed Labour Force Survey data — though statistically compromised — shows overall employment still rising. Nonetheless, qualitative data from the Bank of England's decision maker panel confirms a palpable pullback in hiring intentions. This is consistent with the broader trend: firmer labour market regulation may be well-intentioned, but it is weighing on labour demand. The second caveat is that green shoots are now emerging in labour market participation which has inched upwards — possibly aided by NHS capacity improvements. Yet the metric that matters most for fiscal arithmetic — productivity — remains worryingly flat. If the Office for Budget Responsibility downgrades its productivity assumptions in the coming weeks, the government's already tight headroom could vanish entirely ahead of the budget. So what happens this autumn? The chancellor faces a vexing equation. Maintain fiscal rules, avoid tax rises on working people (her words, not mine!), protect spending pledges, and hold her parliamentary party together. At least one of these constraints looks certain to give. Options are narrowing. Loosening rules risks a bond market backlash. New taxes or spending cuts risk backbench revolt and sap economic momentum. Supply-side tweaks — such as speeding up infrastructure approvals or revisiting the North Sea tax and licencing regime — offer some room, but their fiscal payoff is modest and long term. The chancellor may also be tempted to revisit the policy of interest paid on central bank reserves. This is a potentially lucrative move but one fraught with risks to monetary policy effectiveness as her governor, Andrew Bailey, has recently noted in response to similar proposals from Reform UK. None of these options are easy. Some are not credible. But the current fiscal impasse is even less sustainable. Yet mere policy competence will not be enough. The fiscal debate is increasingly constrained not by in-year numbers, but by a refusal to confront long term trade-offs on healthcare spending and pensions. If the government truly wishes to spark the 'renewal' it promised, it must move from a mindset of management to one of reform. The alternative is a parliament of drift — marked by tactical retreats, fiscal fudge and faster growth that never quite arrives. In the months ahead, the OBR's pen may prove more consequential than the chancellor's speeches. Should productivity assumptions fall, the government's entire economic strategy could yet unravel. The risk, as ever, is not that the centre cannot hold — but that no one dares to grip the centre at all.


STV News
29 minutes ago
- STV News
Growing mental health crisis among Scottish police officers, Labour warns
Labour has warned of a 'growing mental health crisis' among Scottish police officers, as figures show the number of officers taking time off because of psychological issues rose by more than 50% over the last three years. The figures, obtained by the party via a Freedom of Information request, show the number of officers off work because of anxiety, depression, stress or post-traumatic stress rose from 814 in 2021 to 1,236 in 2024, an increase of 52%. The figures also show the number of officers taking time off grew each year over the period, with 1,024 in 2022 and 1,102 in 2023. The party said the figures showed officers are at 'breaking point' and called on the government to address the 'mounting pressures' facing officers. Scottish Labour Justice spokesperson Pauline McNeill said: 'It's clear police in Scotland are at breaking point after years of SNP mismanagement and neglect. 'We owe it to police officers to ensure they have the support they need while they work to keep our communities safe, but it's clear that is not the case under the SNP. 'The SNP has let police officer numbers collapse over the last five years, piling pressure on remaining officers and threatening to undermine public safety. 'The SNP must wake up to this growing mental health crisis and work with Police Scotland to support officers struggling with stress, trauma or poor mental health. 'Dealing with this crisis is vital to keeping police officers in work and on duty at a time when we need visible officers in communities. 'Police officers cannot keep bearing the brunt of SNP failure – more must be done to support police and the vital work they do.' Earlier this year it was reported that the number of days taken off by police officers and staff suffering from mental ill health rose from 63,797 in 2019/20 to 96,509 in 2023/24, a 51.3% rise Deputy Chief Constable Alan Speirs said: 'The health and welfare of our officers and staff remains one of Police Scotland's highest priorities with enhanced provisions from both our Employee Assistance and Your Wellbeing Matters programmes. 'This will be further enhanced through the implementation of our new HR structure with increased resource within our Health and Wellbeing team. 'We also have a range of mechanisms in place to support our employees who are absent from work for any reason. 'We continue to work with our occupational health provider to support police officers and staff in their journey back to health and, subsequently, to work.' A Scottish Government spokesperson said: 'Police officers and staff do a challenging job and we have welcomed the Chief Constable's commitment to workforce wellbeing. 'Staff and officers can access a range of services to support their physical and mental wellbeing. 'This includes access to a 24/7 employee assistance programme, and direct access to occupational health services. 'We are investing a record £1.64bn for policing in 2025-26, an increase of £90m on 2024-25, and Police Scotland took on more recruits in 2024-25 than at any time since 2013, with more intakes planned this year.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country


Scotsman
an hour ago
- Scotsman
Remembering a true working class hero
Former councillor Frank Russell pictured with his Westie, Bonny Frank Russell was the best of Edinburgh. A Labour city councillor for more than 20 years and a season ticket holder at Tynecastle, with a favourite spot in the famous Diggers pub (The Athletic Arms). Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to Edinburgh News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... He was a Broomhouse legend, where he lived for most of his life until a recent move to Musselburgh. A fervent music fan, he supported Edinburgh's Jazz & Blues festival for decades. A bookbinder by trade, he loved books, particularly crime fiction which he devoured, especially Ian Rankin's work. But above all, he loved Janice, his wife of more than 55 years, and their small, tight-knit family of two children and four grandkids, not forgetting Bonny, their Westie. Frank was a quiet man. His main job on the council was heading up the city's personnel committee during Labour's heyday in the 1990s and early noughties. Unlike some of his contemporaries, he didn't seek the headlines. Most of his work was in the backroom. A lifelong trade unionist, he was also a fair boss. He was rigorous in ensuring that the city's workforce had the best conditions, but at the same time delivered for Edinburgh's citizens. Advertisement Hide Ad Advertisement Hide Ad And for many years, he was chair of the council's Labour group, a tough task given that he had to manage some rather large egos and more than a few eccentric personalities. It is not an exaggeration to say that Frank's often low-key, but always wise, approach to Labour's internal politics probably averted a few disasters for the administration. And he was a mentor to many young politicians, myself included. He didn't see new kids on the block as a threat, as many ambitious politicians do. Instead, he and Janice – a brilliant local campaigner – took them under their wing, always quick to offer the best advice. As the Scottish Secretary of State, Ian Murray, said in the wake of Frank's death last Monday, it was Frank who encouraged him to go into formal politics. 'It was always traditional, after [Labour party] AGMs, to go and have a few pints,' he wrote on Facebook. 'I went to the Sighthill Hotel…and after six pints of cider, Frank Russell said to me 'do you fancy standing for election?' And I stupidly said yes. I won the council seat. The rest is history, really.' Ian also echoed many others when he said that Frank had the best political instincts. And that is because he embodied Labour's true values of community, public service, fairness and aspiration. Labour leaders came and went, in the city council as well as in the country, but Frank held true to his principles. He entered politics, not because he adhered to a rigid dogma, but because he wanted to help build a better community, city and country for everyone, regardless of their background. Advertisement Hide Ad Advertisement Hide Ad Frank was a huge Beatles fan – he was in the audience when they played at Edinburgh's ABC cinema in 1964. He preferred the melodic genius of Paul McCartney to the more eccentric grit of John Lennon, but there is only one song going through my head when I think of Frank. A working class hero is something to be, wrote Lennon in 1970. Frank Russell was that working class hero.