Government minister Paul Scully

FEARS of a new wave of austerity cuts to public services have been stoked by a key Tory figure claiming that there is still “fat” to be trimmed from local authority budgets.

After an appearance at a conference fringe event here in Birmingham, Paul Scully, the government minister for “levelling up”, said: “Every department has received a letter from the chancellor telling them to make efficiency savings. To be fair, the spending review provided a generous settlement. So there is fat to be trimmed.”

He was speaking after being challenged by the Local Government Chronicle, who asked where savings – or cuts – could be made at a time when several council leaders have warned they are under unprecedented pressure to cover the cost of vital services.

“I know that is a moral dilemma, but I think there is fat to be trimmed in all areas. It’s a case of moving things around a bit,” said Mr Scully. “There are a number of councils who have a Covid overspend. We’ve given councils an extra £2.7bn through the spending review and national insurance as well. It’s not easy, but there are things we’re doing.”

His comments matched a theme of the conference where Conservative big hitters refused to commit to not only raising benefits at the rate of inflation, which has raced to around 10 per cent, but also spending on public services and the funding sent to local authorities.

At fringe meetings attended by the New Journal, several speakers said they were fed up with councils going “cap in hand” to the government and they should consider more partnerships with private operators to run things like youth clubs.

The overall choice to not keep up with inflation, however, has led to warnings that billions of pounds in local government spending will be missing over the next two years.

And last night (Wednesday), Camden Council leader Georgia Gould warned that people were already struggling with the cost of living crisis – and could not have services that supported them taken away.

She said: “Councils are already down to the raw bone. The idea of there being fat to be trimmed is insulting to frontline staff who are working everyday to care for the elderly, support young people and clean our streets.

“London’s councils already have two-thirds of our budgets cut under the Conservatives. We need to be focused on supporting our communities, not cutting the services they rely on.”