It figures? A look at the real spending on English public libraries 2007/12
There has been some debate about Ed Vaizey’s claim of £820m “investment” by local authorities into public libraries over the last year and the figure of £1 billion or more I mentioned yesterday as the high water mark a few years ago. Tim Coates has very kindly provided me with the Cipfa figures for the last five or six years that sheds some light on the matter. First off, it’s important to say that these figures are for England only:
Year |
Capital £m |
Revenue £m |
Total £m |
Inflation adjusted £m |
% of 2007/8 |
2007/8 |
71 |
870 |
941 |
1063 |
100 |
2008/9 |
100 |
890 |
992 |
1126 |
105.9% |
2009/10 |
146 |
897 |
1043 |
1132 |
106.5% |
2010/11 |
121 |
871 |
992 |
1023 |
96% |
2011/12 |
140 |
820 |
960 |
960 |
90.5% |
So that’s a 16% reduction in real terms over the first two years of the coalition government. An observer could be drawn to conclude that there’s no wonder there’s pressure on the service with a figure like that. However, the inflation figure is contentious in that a large part of library budget is wages and, due to the pay freeze – and indeed to the reduction in pay experienced by many staff due to the loss of extra pay for weekend and evening working – councils will not be experiencing inflation at the same rate as you or me. Mr Coates argues that, along with cuts to book costs etc, the net effect is effectively nil. On the other hand, councils are experiencing inflation in other ways and so it does serve at least as a guide. I have used the Bank of England inflation calculator for these figures if you want to check them. If anyone knows of any research done on the “real” inflation rate that library services are experiencing, do please let me know.
Another point of debate is capital. This is the cost of new buildings, refurbishments etc, amongst other things. 2011/12 stood up remarkably well in this regard. How this came about is not clear to me, although conversion to self-service machines (which are put in to save on staffing costs) may be a factor, although there were new builds and refurbs as well. If you strip this out, it is obvious that revenue is the one that took the dive, recording a whopping decrease from high to current low if inflation is fully adjusted, with all the caveats about this noted above.
A big point amongst campaigners – notably once more Tim, who supplied these figures and is one of the few outside of library authorities that keeps track of them – is that the percentage of the revenue budget that goes to repay corporate costs in each council seems to go up and down for no easily apparent reason. Have a look at these percentages for example:
|
Brent |
Lewisham |
Bolton |
Newcastle |
Swindon |
Oxfordshire |
Isle of Wight |
2007/8 |
6.6 |
13.7 |
2.4 |
15.5 |
25.2 |
25.3 |
0.4 |
2008/9 |
9.7 |
11 |
14 |
15.5 |
8.7 |
25.3 |
0 |
2009/10 |
3.3 |
11 |
14 |
10.5 |
0.4 |
23 |
6.3 |
2010/11 |
3.9 |
23.9 |
15.9 |
12.2 |
0 |
22.2 |
4 |
2011/12 |
6.1 |
27.7 |
19 |
3.1 |
12.7 |
20.4 |
18.5 |
Something is certainly going on here but it is not immediately clear what it is. One should also note that the seven quoted above are not random but rather councils which have had notable cuts, or are planning them, in their libraries. Some would say that it is this and other decisions by councils which is a main factor in the cuts to front-line library services. Others would blame the coalition in its entirety. The truth probably lies somewhere inbetween.
The least therefore we can say about these figures is that there has been a significant reverse in the spending trend and the most is that three more years of the same trend would mean the effective end of the local public library network. Where you are on this continuum is up to you. It is also, of course, due to the localised and variable nature of the cuts, up to where you live.
“The real issue is whether the DCMS and their strategic agencies, responsible under the 1964 Act for “superintending” library authorities, are analysing the data and asking questions or is it left to campaigners to analyse the data over several years to track trends and identify problems. Are there piles of CIPFA reports sitting unread and gathering dust in the cellars of the DCMS and ACE/MLA? Does the LGA or the SCL maintain any data base to allow comparative analysis over five or ten years? Is the Minister provided with a comprehensive analysis and not just one year’s summary data?” Desmond Clarke
“Previous analysis of CIPFA data has shown that corporate service charges imposed on library authorities have escalated by 70% as a proportion of revenue in the past decade. This is an issue often raised privately by heads of service and was highlighted at the Hampshire conference attended by several council leaders and library portfolio holders.” Frances Hendrix on Lis-Pub-Libs
Completely unconnected to this but something which needed drawing attention to is the debate about who first compared the state of affairs in libraries to the cuts brought about by Dr Beeching to the railways. The earliest known reference so far is by a Conservative shadows library minister (Mark Field MP) in October 2006. His words may now seem to some oddly prophetic:
“The Conservative Party is preparing valuable steps in making that action a possibility in councils up and down the country. If not then I fear that in ten years time we may see a very different library service than we have been used to and one that most people in the country will regret. The Government has not yet given the task to a Dr Beeching so I hope that we still have a chance to protect the service for our children and grandchildren.”
News
- Ann Cleeves interview for Shetland – Telegraph. “Cleeves does, however, have a core of steel and this is exposed, just briefly, when talk turns to library closures. We meet at Newcastle’s Lit and Phil Library where Cleeves likes to write, with bookshelves towering over us. She says, quietly but with conviction, “It is absolutely appalling – we are becoming philistines.”
- Cuts? What cuts? – Good Library Blog. “if libraries are being closed and book funds being cut, it does seem more sensible to ask whether councils are giving proper priority to front line services in their normal management of public libraries. One wonders whether they are managing their overhead costs properly That is where , it seems to me, the figures suggest the problem lies. At the town hall door”
- Epistemological? What are you talking about? – Question Everything. An analysis of Ed Vaizey’s speech: “All the waffle, nonsense and Boris lite bluster doesn’t disguise the fact that actually library numbers are being savagely cut.” … “A fifth of libraries, cut. Crisis, I do think so.” … “The councils rather than band together to pool the management resources are in nearly all cases cutting the low paid library managers and assistants rather than tackle the duplication that exists across the authorities borders and the shocking high service support costs of running library services.”
- Lost libraries – Public Domain Review. “In the latter half of the 17th century the English polymath Thomas Browne wrote Musaeum Clausum, an imagined inventory of ‘remarkable books, antiquities, pictures and rarities of several kinds, scarce or never seen by any man now living’. Claire Preston explores Browne’s extraordinary catalogue amid the wider context of a Renaissance preoccupation with lost intellectual treasures.”
Local news
- Luton – Do people in Luton love libraries? – Luton Today. “Luton Borough Council is currently consulting on cuts to the library service in Luton, asking for views on two proposals, both of which would see the Sundon Park library close. The library currently has 1,200 ‘active users’, making 32,000 visits a year.” … “Mr Serpell-Morris said the proposed library cutbacks would “decimate the library service throughout the town”, despite “a greater need than ever to encourage children to develop the habit of reading”.”
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about 11 years ago
While I’m not sure how to construct indicators for library inflation, I do recall back in the days when LISU still published a comprehensive breakdown of library costs, that one factor creating pressure on library budgets was continually increasing property costs – and in spite of the recession and its twin. austerity, rents and property costs are still rising. While some library costs may not be rising at the same rate as the CPI, it is quite possible that other costs are rising at a faster rate.
about 11 years ago
This is helpful analysis from the ever-independent Mr Coates. In particular the corporate recharges issue always warrants some detailed unpicking with councils often failing to accept that if the libraries and staff are on the verge of closure, they won’t be able to allocate those charges to libraries anyway! However …. please beware…. maybe not all is as it seems …
…. Some cautionary queries re CIPFA library stats …..
1. Are the spend figures shown therein ever/always accurate?
2. Do they ever/always match the libraries budget figures given to Members, local people and/or in tender documents?
3. Are they ever/always compiled/submitted by an independent financial auditor or accountant?
4. Has there ever/always been something of a conflict of interests in officers charged with the responsibility of voluntarily compiling or submitting these figures not wanting their services to be seen to be comparatively more costly than others?
5. Has there been a fall-off in councils voluntarily submitting their spend data since 2009/10?
if the answer to all, any one, or part of these questions is NO…. then please treat these figures with real caution.
about 11 years ago
This always perplexes me, during a time of undoubtedly large cuts to library budgets I never understand how these charges can be so big. In fact in Oxfordshire the other expenditure estimate has gone up from £3,100,144.00 in 2010/2011 to £4,410,636.00 in 2012/2013, a increase of £1,310,492.00 in one year. This is in the context of my local council cutting the staffing budget in 21 of the smaller libraries by 313k cutting the low paid library assistants and managers and the libraries in the hard to reach rural areas, that despite what you read about the cotswolds and the chipping norton set does have a lot of poor, vunerable and elderly residents. I post I wrote a while ago which upset lots of councillors because I calculated the back office would end up bigger than the front line and this prompted the one of the senior managers to send me a break down of these back office costs:
https://docs.google.com/file/d/1vQcbFhmNGe45WQ1z8xX2GmRkDBBx2KM2ZcBdcKlqURLIa3ipXHjgGG71bTSc/edit
He never questioned my figures I think, its just we disagree on back office. I never said certain roles weren’t required I just say that if you’re not a customer facing employee by definition you are in the back office. Anyway, I don’t know if other councils assign their costs in the same way, the CIPFA instructions seem quite clear.
I have FOI’ed to ask for a similar breakdown to the above for to try and explain why the costs have jump in this last year for OCC.
about 11 years ago
The reason why this happens is because the cuts are made to particular services, but not to central administration. Consequently a larger amount has to be taken out of the remaining budgets in order to fund central administration.
A highly simplified example:
If you have five service budgets of £100 (a total of £500) and deduct £100 in central admin costs, each individual budget has £20 deducted (20%)
if you then cut one service so that you have only four service budgets of £100 each, in order to pay the central admin cost each service has £25 deducted (25%).
This basic principle underlies what is happening, although it is concealed by all the other factors eg inflation, uneven application of cuts, growth in central admin etc. to deal with redundancy, uneven distribution of budgets across departments.
about 11 years ago
Thanks Martyn,
It think it would be fair to say then that the pain isn’t being shared equally if the percentage of the central recharge costs are increasing at such a rate.
If you deliver less front line services the back office admin workload should be decreasing as they have less to do, or at least that’s how it should be working.
about 11 years ago
That’s spot on, Martyn and Trevor!
….. Whereas a sensible piece of logic would suggest that if the frontline services are cut, there is far less of an organisation to administer from the back office – ergo, savings should automatically be accruable there too. THAT is how common-sense would operate and how a private sector business would think and behave – in ANY sector.
Now in the case of library services, as opposed to cutting hours, branches, professionals and other staff, one could just as easily reduce a wide range of back office support functions and invariably save much more money to enable the council to keep the branches open and keep contributing to all the corporate objectives it sets itself eg educational attainment, employability and cultural development etc but that would mean spreading the coprorate costs more thickly across much bigger and higher-spending departments – which in itself would make a lot of sense. But one of the risks of doing that is that it would upset senior management and senior Cabinet colleagues in “more powerful” depts such as Social Services, Housing and Education – and THAT, in many cases is where the problem lies….CXs and Leaders don’t want to upset their strongest internal allies and so pick on the quieter, meeker, low-hanging fruit type services where spending is actually quite peripheral to the big picture.
It’s almost an analogy, in microcosm, for the national debate about whether the Defence budget can grow at the expense of the welfare budget – i.e. ludicrous!
Hvaing said that, and having worked extensively with Oxfordshire CC to explore potential savings within its library service (I know exactly where their over-spending issues lie!), we must be careful NOT to generalise – some councils are indeed offering up proportionate cuts in their back office budgets along with the existing library service budgets to ease the transition to alternative governance methods – eg partnering with specialist commercial providers or Trusts or mutuals. As well as criticising those councils that won’t do that, we must also praise those few that have, and will do it in the future. And remember the reason they’ll do it – simply because it makes good business sense!
about 11 years ago
The speech avoided all mention of anything and then claimed that, therefore, nothing was happening. The first part of the speech took this line about it and then the second – more relevant to the purposes of this homepage – took the same line about libraries