Efficiency matters because Council Tax hits those on fixed incomess very hard. We have to be fair to the tax payer so we will keep Council tax in line with inflation. That means that no rise in East Hants Council tax should be more than a few pence per week for a Band D property.
When we were in power, four years ago, we cut Council spending by £1.2 million over three years, leaving the Council in a healthy financial position. General reserves were almost £3 million and earmarked reserves (provisions) were a further £2.3 million. In addition, we left capital investments of over £60 million which generated valuable income and allowed the Council to pay off borrowings (go debt free) as soon as interest rates made it worth while.
But we had to put taxes up to save services because of real cuts in government support grant which provides most of the Council’s income. The Tory government had a deliberate policy of transferring taxes to local authorities. It was part of the Tory government stealth tax. They deliberately funded councils at less than inflation so that all councils had to cut services or put taxes up. We did both.
Since the Tories took over at East Hants, the climate has been completely different. Until this year, the Labour Government has funded Councils properly and interest rates made it sensible to go debt free and claim the privileges the government allows.
We took all the difficult decisions before the Tories took over. Nevertheless, they have put up charges such as car parking and burials, and the reserves are lower now than when we left office.
A detailed comparison of government support and tax rises will be put on our web site: The truth about Council Tax and reserves.
The new Chief Executive suggested setting up the Community Initiatives Fund (CIF) and we welcomed the proposal, but it now needs more secure funding. At the moment it is a balancing fund, which means we put whatever is left over into it.
In a good year, that is excellent. Lots of money is available for use in the community and the voluntary sector.
But in this year’s budget, the Conservatives plan to put £69,000 into the CIF while they take £200,000 out. That is bound to disappoint our communities just as expectations are rising.
It sends an awful signal to our partners: “we give you our change after we have spent the big money on Council core business. But if we have to make savings, then we will hit your CIF for all the savings.”
The Liberal Democrats would guarantee a minimum contribution to the CIF of £200,000 per year. In good years, the amount would exceed £200,000. But in lean years, we would look for savings in the whole of the Council’s services, not just in our contribution to the voluntary sector through the CIF.
In other words, we need to see where savings are best made, rather than taking all our savings from the CIF.