Councils could use 'secret billions' to avert national pay strike » Local Government » 24dash.com

Local authorities are sitting on billions of pounds of reserves which could be used to avert a strike by more than 600,000 council workers over pay, it was claimed today.

Unison said councils in England and Wales could afford to increase a rejected 2.45% offer without having to go to the Government for more money or raise council taxes.

The union said the "secret" billions had built up largely because of efficiency savings achieved over the last few years.

Councils in England have £11 billion in the bank of which more than £3 billion is not earmarked for anything while authorities in Wales have more than £373 million in the bank of which £143 million is unallocated, said the union.

General Secretary Dave Prentis said: "These billions of pounds in the bank, put there by the hard work of hundreds of thousands of low paid Unison members, should be used by the employers to settle this potentially damaging dispute.

"The employers don't have to go to the Government with a begging bowl, or put up council tax or cut jobs or services or any other dire consequences they are threatening.

"They should face up to the fact that the solution is staring them in the face."

School assistants, caretakers, dinner ladies, refuse collectors, social workers, librarians, architects and other council staff in England, Wales and Northern Ireland will strike for two days on Wednesday and Thursday bringing huge disruptions to services.

Mr Prentis said the union could not stand by and see the workers facing a pay cut while food, fuel and energy bills were "going through the roof".

spokesman for the local government employers said: "The whole point of contingency funds is to make sure that in lean times council services still get provided to the most vulnerable in society.

"With rising costs for food, oil, gas, electricity and petrol councils are already having to dip into these emergency funds in order to protect front line services.

"As people would rightly expect, councils have put money aside for a rainy day. Now that the credit crunch has hit alongside the huge rise in fuel and energy prices their prudence will now pay dividends by protecting services.

"It would be irresponsible of councils to dip into their emergency reserves just when the economic downturn is starting to bite hardest.