Tory budget doesn't balance (Swindon Liberal Democrats)

Swindon Liberal Democrats <info@swindonlibdems.org>

Tory budget doesn't balance

February 28, 2005 9:01 PM

Tory budget does not add up

Liberal Democrats have raised concern over the Swindon Conservatives 3.5% budget, which was steamrollered through Council. The budget has a £248,000 deficit that could render it illegal.

Cllr Wendy Johnson, chair of the Scrutiny Review Board said:

"The Council has an obligation to set a budget for the new financial year, which was agreed by Conservatives on 21 February. But during the debate it became apparent that the Tories had got their sums wrong. The budget did not balance."

Cabinet papers to a meeting next Wednesday 2nd March indicate that the budget deficit this year will be £1.382 million.

Cllr Johnson continued:

"The Tories have failed spectacularly to balance the Council's budget at the end of the year, but I have never known of the Council starting a financial year with a budget deficit."

"I have written to the Council's auditors to seek confirmation that they are content for the Council to start the financial year with a budget deficit. If this is not acceptable, then councillors will need to meet again and the Tories will have to outline which further cuts to front-line services they will introduce."

Swindon was criticised for financial incompetence in the 2004 Corporate Performance Assessment (CPA) published in 2004. The report said: 'Financial reporting is not linked to performance reporting. Weaknesses in the format of financial reports mean that councillors and directors cannot track the service outcomes of budget decisions and do not have a clear picture of the results in in-year policy or budget adjustments.'

Another criticism in the CPA report says: 'The council does not have a clear approach to achieving value for money. Significant efficiency savings are being sought in the current budget round, but there are no clear plans for how these will be achieved.'

In the letter to the Council's external auditor, Richard Tremeer of RSM Rhobson Rhodes, Cllr Johnson says:

I wish to seek your advice on Swindon Borough Council's budget approved by a majority vote at Full Council on Monday 21st February.

The Revenue Budget of £196,974,000 does not balance as there is a shortfall of £248,000 from the items listed below.

~ The administration agreed to increase charges for crematoria by 2% instead of 7% This results in £24,000 lost revenue

~ The administration cancelled a plan to charge employees to park in Council car parks = £174,000 lost revenue

~ The administration have not concluded plans to delete two full time Trade Union posts = £50,000 lost revenue

Council budgets often go into deficit throughout the municipal year, and Council reserves can be used to ensure this is corrected.

You will be aware that Swindon Borough Council's general fund incurred a £0.66 million deficit as audited by you in 2003/04.

Is it advisable or legal in your opinion for the Council to begin it's new financial year with an identified £0.25 million deficit? Or should a further cut to a service or an extra efficiency saving be identified.