DAVID RENARD: Budget challenges

Swindon Borough Council leader David Renard with his weekly Link column...

LAST Wednesday, Cabinet approved the final draft Budget that all Councillors will consider in a few weeks’ time.  This was a significant challenge and I congratulate my Cabinet Member for Finance, Russell Holland, and his officers, on producing a balanced budget that still allows the Council to achieve its strategic goals.

For the fifth year running, the administration is proposing a Council Tax freeze.  Some have argued that we should increase it every year so that our base budget continues to grow.

Had we increased it by the rate of inflation over the past four years we would have an additional net benefit of about £4m now, allowing for the government grant we would lose.  As you will see in the budget papers, that would still leave a gap of £16m for the next financial year instead of £20m, and £28m instead of £36m for the following two years.

The Administration has thought long and hard about the Council Tax levels.  We know that demographic pressures drive most of the additional budget pressures – a rise in the number of young children and at the same time we are seeing an increase in the number of elderly residents needing support.  We also know that every household needs to be fiscally responsible.

The Council could have taken a number of approaches.  We could have looked only to the short-term and used all our reserves.  However, this is a highly risky approach, a gamble with all our futures.  We would end up with nothing left in the kitty, which is why the administration has rejected this.

We could have just raised Council Tax, but as those of us who were here over a decade ago, a 42% increase in local taxation then did not bring an improvement in the Council’s performance.

Instead, the Administration has used the situation to undertake radical transformation of the Council, moving away from delivering services to a system where we work in partnerships to get the right results.

We have not allowed ideology to get in the way of what is best for Swindon.  We have taken some contracted services back in house such as Swindon Commercial Services; we have transferred others to not for profit organisations; and we are working with the private sector on others such as Wichelstowe.

Altogether, these changes mean that the Council is in a better place that many other local authorities.  Yes, the decisions have been difficult, but I believe that the Administration has made the right choices that will allow Swindon to prosper.