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Unemployment set to leap - again

Unemployment could leap by another 1,800 by the end of the year in Ashford.

And Ashford council is being hit with a double whammy of falling revenues and rises in demand such as in housing benefit as the recession continues.

Officers recommend measures such as more recruitment restrictions, redeploying staff where most needed and using reserves to save £100,000.

An officers’ report to Ashford Borough Council’s executive committee, to be presented tonight says: “If these adjustments are not made then added financial pressure on the council budget will arise.

“With an already challenging budget strategy there is no scope to absorb further impacts.

“The management team expects the measures to reduce the pressure on the 2009/2010 budget by £100,000.’’

The report said a recent Ashford (Local Strategic) Partnership seminar received a forecast of unemployment in the borough rising by another 1,800 by December 2009,. This would be 3.5 per cent compared to 2.2 per cent last February.

The officers tell of huge leaps in the numbers seeking jobseeker’s allowance, rocketing by 62 per cent since last November and 130 per cent since last July.

The report concludes that managers should bring forward planned budget cuts for 2010/11 to soften financial blows.

It adds: “Short term funding may be need to be allocated from reserves.”

Officers also want managers to be given more flexibility in redirecting resources where needed.

The report tells of “significant reductions in service income levels.” for example with predicted falls in workloads of 28 per cent and 45 per cent in development control.

Car park usage fell by 4 per cent between January 2008 and January 2009 although there has been a recent sign of rising usage.

Meanwhile housing benefit caseloads increased by 9 per cent during 2008/09 with a further 1.5 per cent rise in March and April and yet another increase of 10 to 15 per cent expected during the year.

Two more full-timer staff are recommended to deal with demand here.

The report says managers will undertake a further review across services during May and will give their conclusions in the summer.

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