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Conservatives challenge Labour Budget plans
Date: 02/03/2009
First Conservative Challenge
The Scrutiny process is a first class tool designed to protect taxpayers from improper decision making by a Council.
It is the backstop to make the 53 elected councillors in Darlington,
the Governors of this Council think twice about their policies and
budgets. Remember scrutiny is the only member led process to challenge
in detail Cabinet decisions. Over recent weeks Resources Scrutiny under
the Chairmanship, of the Mayor
convened on many occasions perhaps above and beyond the call of duty.
We have reviewed documents, interviewed officers and arrived at
conclusions all without rancour or political confrontation and I
congratulate members of that committee for acting in such an exemplary
manner.
Our conclusions expressed concern over the Cabinets budget proposals
and we prepared thirteen recommendations to Cabinet to assist in
monitoring the cost and deliverance of the Cabinet Budget.
Lastly the Labour Cabinet proposed budget , a good Conservative budget.
A budget which reduces taxes from 4.9% to 3.5% and cuts expenditure an
excellent direction of travel. If Conservatives had been in control we
would have followed this direction although probably sooner and more
robustly and without of course increasing the Town.s debt. This Labour
budget will cut services and reduce jobs and you state you have no
option in these matters. Of course more prudent budgeting over previous
years would have given you many more options this year.
Can it be delivered, well it is an odd budget as one of its fundamental
building blocks is a plan to save £4.9 million pounds during the budget
,not something this Labour council has a reputation for achieving.
Labour end of year accounts generally show overspending.
It is for this very reason the checks and balances proposed by
Resources Scrutiny were recommended to Cabinet for adoption in total
and not in part , it was Cabinet endorsement that was required not
approval.
It was to send out a clear message to the residents of Darlington we
are concerned and we are taking responsible decisions in our finances.
Conservatives moved an amendment to ensure that financial
responsibility can be monitored transparently , that we take corrective
action as soon as required and we are seen to be proactive in our
financial governance.
The following amendment was moved:
Amendment to Item No. 3(a) ‘Medium Term Corporate Plan (incorporating
the Medium Term Financial Plan 2009/10 to 2012/13) and Revenue Budget
2009/10’ (To be moved by Councillor Johnson and seconded by Councillor
Coultas)
My amendment is:-
‘That the recommendations as previously moved be prefixed with (2) and the following be inserted as recommendation (1):-
(1) That Council endorses the following recommendations of the Resources Scrutiny Committee :-
(a) that the revenue budget monitoring information which is submitted
monthly to the Council’s Corporate Management Team be also submitted to
Members of the Resources Scrutiny Committee on a monthly basis;
(b) that a Review Group, to be known as the Budget Monitoring and
Efficiency Review Group, be established to monitor the 2009/10 budget
and to assist in developing efficiency projects to try to identify
further savings 2009/10 and future years;
(c) that the above Review Group meet every 2 months in between the
ordinary meetings of the Resources Scrutiny Committee and that all
Directors be requested to continue to review and challenge their
individual budgets and attend meetings of this Review Group, as and
when, requested;
(d) that the Resources Scrutiny Committee continue with its current
monitoring role in relation to the Medium Term Financial Plan;
(e) that a report on the National Agreements/Contracts of Employment of
Directors and Assistant Directors be presented to the Budget Monitoring
and Efficiency Review Group;
(f) that, in relation to the Communications Unit, the Chief Executive
be requested to submit a report to the Budget Monitoring and Efficiency
Review Group on the scope of the work undertaken by that Unit;
(g) that, in relation to Talking Together, the Budget Monitoring and
Efficiency Task and Finish Review Group monitor the proposed savings of
£45,000 in the 2009/10 budget;
(h) that, in relation to vacant posts within the Authority, the Chief
Executive be given responsibility to approve, in writing, the filling
of all vacant posts and that the pay structure within the Senior
Management of the Authority be taken into account when filling vacant
posts;
(i) that all Directors be requested to look at commissioning services
within their individual areas with the voluntary and private sector; and
(j) that this Budget Task and Finish Review Group is concerned about
the proposed reduction from the original proposals in the Leading Edge
Efficiencies in 2009/10 and that further monitoring be undertaken in
relation to that by the Budget Monitoring and Efficiency Review Group.’
Cllr Charles Johnson JP
Conservative Resources Spokesman
Second Conservative challenge
I formally second Councillor Johnson’s amendment to have Council
endorse all thirteen recommendations from Resources Scrutiny. In doing
so I would also like to acknowledge the work of Resources Scrutiny
which has been thorough, probing and productive and produced a
consensus report. It has set out a direction of travel which I want to
pursue.
From our side, in the difficult economic circumstances that we all
recognise, our Group are concerned that this budget and MTFP does not
go far enough to preserve the financial well being of the Authority. In
the planning term of the MTFP, Government of whatever colour will have
no option but to cut back severely on public expenditure to reduce the
mammoth public deficit and this is likely to hit local authorities hard.
In times like this, we have to stay positive and ambitious for our town
and maintain the springs of hope, but, we have to be entirely realistic
about our immediate aspirations. For many people and businesses, their
only aspiration is that of survival as they lose their jobs, go on to
short time working or take reductions in salary. How do they pay their
mortgages and keep a roof over their heads? For pensioners and those
living on fixed incomes, how do they meet high fuel bills and rising
council taxes? The last thing they want is to be hit with higher taxes.
Lets deal with council tax. Those who were present at the Talking
Together event in the Dolphin Centre heard an 80 year old gentleman
make a heartfelt plea, in this year of all years, to have council tax
frozen. His council tax bill has nearly doubled under New Labour and he
wondered how he could make his payments in future. It is an insult to
the people of this town to boast about the relative level of council
tax. The only figure that matters is the substantive figure which is
set for many people at a penal level.
Turning now to the budget, what is being proposed is to raid reserves
again taking them to a nearly minimum level, to borrow more and to
spend more all at a time of great uncertainty. Efficiency savings of
£4.9 million are targeted but are not clearly matched by resource
savings.
What industry knows very clearly is that in tough times, if costs are
not cut hard enough and early enough then when circumstances get even
tougher very drastic cuts have to be made. This lesson needs to be
learnt in local government and In this sense this feels like "a wait
and see budget”.
Despite all the warning signs this is a sector, in jarring contrast to
the private sector, still awarding itself salary increases. Our Group
called in scrutiny for the salaries of the Directorate to be frozen but
were told that this could not be done because of national agreements.
Exceptional circumstances require exceptional measures.
People are losing their jobs and I call tonight for the Directorate of
this Authority, which is paying a number of six figure salaries, to
forgo salary increases this year along with all Councillors. This would
send out an important message of solidarity and show that we are also
prepared to make sacrifices.
Eighty per cent of local authorities have applied a freeze on
recruitment. In scrutiny, the Conservative Group called for an
aggressive approach to vacancy management and recruitment to reduce
costs always giving the highest priority to essential services such as
adult social care and children's services. We would apply this approach
in an authority turning over 400 plus posts a year. We would also drive
the commissioning of services much harder and faster.
In these ways, and, by stopping such things as the profligate spending
on glossy coloured literature at every opportunity, would we curb
expenditure, preserve the reserve strength of the Authority and deliver
lower council tax.
The impact of this recession is real and it is everywhere and the day
of reckoning has arrived. New Labour knows how to spend in the good
times, mortgaging the future for generations to come with frightening
levels of borrowing. Whether it knows how to manage in the really tough
times is another matter. The jury is well and truly out and this budget
plan and MTFP are going to need the most vigilant of scrutiny and
monitoring.
Alan Coultas
26 th February 2009
File: Darlington BC, Budget 2009/10
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