City Of Edinburgh Council Orders £16m Cutbacks

EDUCATION and social care chiefs in the city are to be tasked with making £16 million worth of cuts over the next two years. Under questioning from Labour councillors, it emerged today that the savings are “still to be identified”, raising the possibility of a return to last year’s proposals to close care homes and community centres.

The cutbacks in the children and families and health and social care departments will be made in the years 2009/10 and 2010/11.

If necessary, the council will also be able to dip into its reserve funds, which are currently being replenished after falling to just above zero.

City finance leader Gordon Mackenzie said: “Each year, every department has a requirement to make a two per cent efficiency saving which is then reinvested into council services.

“Children and families and health and social care have yet to fully identify these savings for the coming years but will do so during the budget setting exercise which take place each year.

“Working on the assumption that the departments can make these savings there will still be additional unallocated resources available to meet pressures and service developments.”

Separately, it emerged today that the children and families department, which went millions of pounds into the red last year, may have overspent by another £3.6m in 2007/08.

Although the final accounts have yet to be published, it is thought that officials struggled with the cost of services for vulnerable children and rising energy prices.