COUNCIL SLIDES FURTHER INTO DEBT (Cheltenham Liberal Democrats)

Cheltenham Liberal Democrats <info@cheltlibdems.org.uk>

COUNCIL SLIDES FURTHER INTO DEBT

September 25, 2008 4:45 PM

At Yesterday's cabinet meeting the conservative councillor in charge of the county's finances admitted that Gloucestershire County Council would "resort to more borrowing".

The shocking figures presented by the cabinet revealed how poorly the council has managed the budget and local taxpayers' money in the last financial year.

The cabinet admitted their plan to raise £11m by selling council assets to pay for services in the county had failed completely. The new forecast is to try to raise £5million, leaving a massive £6million hole in the council's budget.

Poor budgeting was revealed in services to elderly and vulnerable people in the county. £1.2million extra costs have been discovered and the cabinet has put in place new managers which will lead to cuts in social services to fit into the original budget plans.

At the same time the cabinet has wasted £100,000 of taxpayers money on a "communications review". There was no plan to spend this money in the budget published by the council earlier this year.

Cllr Jeremy Hilton, leader Liberal Democrats said: "I am appalled at the revelations made by the conservative cabinet members. Council debt has grown to £1,444 per family. They propose further borrowing sliding Gloucestershire deeper into debt. The shocking financial mismanagement will leave county residents facing cuts in key services. Elderly and vulnerable people face a tough time over the winter months. Liberal Democrat councillors will work hard at Shire Hall to prevent the Tory council cutting back on social services. The Tories are spending a fortune on propaganda and marketing. This is a waste of money and it must stop. Frontline services are more important than council propaganda."

Other figures revealed in public by the cabinet yesterday include: the administration running Shire Hall has failed to spend a government grant of £2.6million on Supporting People. The council has failed to spend the £700,000 raised by council tax on second homes in the county. Extra costs for replacing council computers has cost taxpayers £198,000.

Cllr Simon Wheeler, Liberal Democrat Hesters Way & Up Hatherley added: "No doubt the administration will try to blame the credit crunch or current national economic conditions for their failure to manage the council's budget. But the cabinet papers reveal council debt here in Gloucestershire is increasing and it's the spending decisions of cabinet members that are to blame."