Stop misleading on finance!
February 7th, 2010 by alandeanComment?
For the third year running Uttlesford District Council will shortly end a financial year with much more money in its coffers than it forecast at the start of the year. At this time last year the Conservatives forecast a surplus on the original budget of only £2,000 when all income and expenditure had been added up. The truth was almost £1.5 million more than budgeted. This year the budget is already in surplus by over £1,000,000 and likely to be still higher when the books have been audited. This cash is equivalent to over one-fifth of the amount taken from the public in council tax each year. Put another way, if this year’s council tax had been CUT by 20%, the council’s budget would still be on track.
When the current year’s budget was set in February 2009, the Liberal Democrats predicted big surpluses but were attacked by Conservatives and Independents for wanting to give back money to taxpayers. Only two weeks ago at a finance meeting the Lib Dems again said that the council’s then proposed tax rise for 2010/11 of over 4% was unnecessary. We proposed it should be no more than 2%. Again we were attacked by Tories and Independents as “irresponsible” for wanting to slash the tax rise.
Yet only two days later the Tories announced their intention to put up Uttlesford’s council tax by just below 3%; closer to the Lib Dem proposal than their own previous plan for a 4.4% increase. Are they now charged with their own “irresponsible” jibe or have they at last exposed the extent of their own party political rhetoric and financial exaggerations over the past three years?
Three years ago they claimed the council would be bankrupt. In fact there was a small surplus. In 2008 the Tories alarmingly forecast a £1.8 million deficit. The truth was a surplus of over £1.3 million that cannot be accounted for by their cost cutting. They paid out £300,000 on recently exposed “gagging orders” when “unnecessary staff” were made redundant. Yet they replaced the most expensive staff with people on higher salaries. Some service costs have been shifted onto Saffron Walden Town Council taxpayers. Uttlesford Tories continue to collect more tax but they deliver fewer services.
The Tories relish telling the public they will get far less income from the government than is the case; they make up the difference from residents’ council tax and then put the spare money in the council’s bank account. One such example this year would have paid for a 9% council tax cut. Council leader Jim Ketteridge only tells one side of the story when he talks about government grants being held down. That amounts to misleading the public.
All councils are facing challenging times because of the recession and national financial crisis. But so are the people who have to pay for them. It’s time for Uttlesford Tories to stop “crying wolf” and playing party politics with the council’s finances. It’s time to treat the hard-pressed people of Uttlesford with respect and financial honesty.
