Cuts to local governments could push outsourcing firms into administration

first_img Read This NextThe Truth About Bottled Water – Get the Facts on Drinking Bottled WaterGayotRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe WrapNewsmax Rejected Matt Gaetz When Congressman ‘Reached Out’ for a JobThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap LOCAL government will bear the brunt of some of the harshest cuts in the entire spending review, prompting one expert to predict the collapse of a number of companies that rely on outsourcing work. The department of communities and local government will see its day-to-day spending cut by 33 per cent in real terms over the next four years, and capital spending slashed by 74 per cent to from £6.8bn to £2bn. Meanwhile, the overall cash handed down from central to local government will fall by 26 per cent in real terms, from £29.7bn to £24.2bn. KPMG’s head of local and regional government, Iain Hasdell, said: “As local government gets smaller and poorer in cash terms, those organisations in its supply chain will experience many difficulties finding alternative contracts. Several financial collapses of companies and organisations within this supply chain will result over the near term.”Outsourcing group Connaught, which had contracts for services from social housing maintenance to grass cutting, has already folded. Chancellor George Osborne said yesterday that fire, police and schools services would be ring-fenced from local government cuts.“Town halls will now face extremely tough choices about which services they can keep on running,” said Baroness Margaret Eaton, chairman of the Local Government Association. Share whatsapp Tags: NULL Show Comments ▼ Wednesday 20 October 2010 8:23 pmcenter_img by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryTotal PastThe Ingenious Reason There Are No Mosquitoes At Disney WorldTotal PastMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailNoteabley25 Funny Notes Written By StrangersNoteableySerendipity TimesInside Coco Chanel’s Eerily Abandoned Mansion Frozen In TimeSerendipity TimesBrake For ItThe Most Worthless Cars Ever MadeBrake For ItBetterBe20 Stunning Female AthletesBetterBemoneycougar.comThis Proves The Osmonds Weren’t So Innocentmoneycougar.comMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan Times whatsapp Cuts to local governments could push outsourcing firms into administration KCS-content last_img

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