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Showing posts with label Cllr Alan Walters Statement re: Cllr Richardson's Comments about Rutland County Councils Financial Plan. Show all posts
Showing posts with label Cllr Alan Walters Statement re: Cllr Richardson's Comments about Rutland County Councils Financial Plan. Show all posts

Monday, June 02, 2014

Cllr Alan Walters Statement re: Cllr Richardson's Comments about Rutland County Councils Financial Plan

Response to Rutland UKIP statements

I have been asked by several residents in my ward to comment on a recent blog entry by the Rutland Branch of UKIP via their online site “4Rutland”
In particular residents have asked whether the comments made by Cllr Richardson are factually correct, and whether they stand up to close scrutiny.
Because, unlike party  members, I was elected as an independent and continue to represent residents as an independent, I am reluctant to enter in to any form of Political debate.  I am however content to offer the following response to the statements made by Cllr Richardson.  Needless to say these are my own opinions, not necessarily those of the Council or other members.
Cllr Richardson suggests that there has been no consideration to date of the future levels of council tax, and no consideration of future budgets in particular for the year 2015/2016.
This is factually incorrect.
The Council has a Medium Term Financial Plan. This is updated regularly in response to changes to legislation, funding, new demands, and historic performance against budget. Cllr Richardson had the opportunity to read all of this with surrounding documentation, evidence and advice when considering report 29/2014 which was considered by Cabinet on 4th February 2014 and by a Special Council meeting to which he was invited  on 17th February 2014.  The level of future Council Tax including options for maintaining the same level or possible rises was considered on the same dates. The Treasury Management Strategy going forward was also considered and is referenced in report 26/2014
Unfortunately the minutes for the Special Council Meeting of 17th February indicate that NONE of the UKIP members attended the meeting.
In my opinion it is perfectly acceptable for Cllr Richardson to disagree with the budget or the future directions of budgets (and I have some sympathy with that view)  -  however to say that there has been no consideration of the financial future of the Council is factually incorrect.

Cllr Richardson's Comment:

May 29 2014 10:42 PM
What a joke Rutland Council is becoming, with yet further farce. We now have the headlines in the local press that “Rutland Council needs to save £925,300 in 2014/15”. I say joke because haven’t Rutland Council just set the budget for 2014/15? How can it then be possible two months later to be suggesting huge cuts in vital frontline services?
In fact we hear on a regular basis from the Deputy Leader of the Council, Councillor King, that; “Rutland Council has never had it so good”, how can that be if we are now taking a sword to these vital frontline services? He may be right given he proposed spending £935,000 on replacing a bus stop with a bus stop, one that now has no benches outside, a rain cover that does not protect you from the rain and only one toilet and by the way what happened to the green and red tarmac! Then of course Councillor King thinks it is better to spend millions on buying an empty prison and create a Business Park when Rutland has private businesses struggling to let their own units! Add to that spending £1M refurbishing a Sports Hall in the wrong location, when we have a leaking, clapped out swimming pool everyone wants renewing! This is all pure genius coming from this Conservative Council!
We also have accounts that indicate there is currently £8.9M of Revenue Reserves; I will repeat the figure, £8.9M!!! That is money that you, the taxpayer, has paid in surplus of the expenditure for Revenue and is being held in the Bank, in other words money that should and could be spent on the very services now proposed being cut, no wonder Councillor King says “we have never had it so good”, what a tremendous slush fund.
The problem is that Councillor King believes in having one BIG “Single Pot”, as he likes to call it. This, in our opinion, is nothing more than mixing the spaghetti of funding streams all into one mix that no one can follow, or has a clue what any of them are for. Once this happens it becomes extremely difficult to know what on earth is going on with your money, for example; we have no idea what monies have been collected for Section.106 agreements or what they are specifically for, they are supposed to only be spent on the specific identified need, yet Councillor King spends this money on practically anything he chooses at the time, whether it is the £300,000 for the prison or £630,000 on a football pitch; etc., in fact Councillor King allocates this Section.106 money before the Council has even received it, in other words he is borrowing on your behalf and spending money you don’t have, of course there will be interest to pay on this, hence less money for frontline services. It becomes very easy to then paint a crisis and suggest cutting vital services to the public who are as much in the dark as we are as Councillors.
“Single Pot” accounting for a Council is a nonsense, it is designed to hide rather than make it open and transparent, which is why we have constantly advocated individual item, line by line accounting. Currently we do not even receive a decent set of accounts for the budget, at the last budget setting meeting Councillor Joanna Figgis stated it was in a format she could neither follow nor understand, so what is the point of the public attending any meeting to discuss budgets that are all but non-existent.
If those looking at this Blog look back at my Blog of 09th November 2013 they will see that I suggested a “Task & Finish Group for Finance”, I also referred to the fact that:
“I have written for now over 2 years, to the Chair of the Scrutiny Commission reference this matter. First to Councillor Roper, starting in July 2011, who did nothing about it, and now to the new incumbent, Councillor Lammie, who I have written to several times, the last being 08th September 2013, to which he promised to get back in the next week, as per below, needless to say nothing has been heard since.”
The Blog went on to state the correct format for budget setting as suggested by CIPFA as Follows:
The CIPFA Guide states that “A local authority must have a sound financial planning system” and that “ Each Local Authority’s plans must be monitored  and reviewed regularly if they are to be of real value”.  “Financial planning is a part of the corporate planning process and is not just a matter for the Chief Finance Officer”.
It gives quite clear guidance about “Setting and Managing Budgets”, which ultimately sets the Council Tax.  It states that:
April-June - There should be discussion on level of Council Tax. (Has this been discussed by Cabinet and Members?)
Preparation of financial constraints. (Do we have a report on financial constraints?)
Review of strategic intentions by elected members and the management team.
Setting strategic priorities, aims and objectives. (Have strategic priorities been set and have scrutiny looked at them?)
Indicative budgets set for future years. (Do we have an indicative budget for next year?)
Review of previous years performance and identification of changes needed in following year. (Has this been done?)
Review of priorities in light of review of strategy (Have members seen a review of priorities?)
We are already in September and have not carried out any of these actions, let alone start any form of budget setting process for next year.  The Budget setting process is not the remit for either the Audit & Risk Committee or Resources Scrutiny, which is why there is a desperate need for a Finance Committee.  You will also note it states; “MUST”, this is not something that is optional, it is something which MUST be done, in our opinion currently it is not.
We have advocated for years that Rutland Council follows this format of financial planning. Had this been done in just the last year Rutland Council would not now be starting panic meetings and panic cuts to frontline services. This is all just ludicrous; all these matters should have been thrashed out starting in April – June of last year, not June of this year!

In fact if you look at the guideline above Rutland Council should already have determined the level of Council Tax for next year 2015/16.  Has this even been discussed or on any Agenda to date? NO!

“Rutland Council needs to save £925,300 in 2014/15”

–is this a joke?