The law requires councils to deliver a balanced budget – something the Conservatives did in Swindon every year for 20 years.
If it doesn’t look like a balanced budget is within reach, councils can ask the Government for exceptional financial support. The Labour Administration have had to do this as they can’t fill the near-£15m budget gap, and we await Government-appointed inspectors who will start arriving in April to scrutinise the council’s finances.
The Labour Administration has overspent by £7.6m, with next year’s budget showing an estimated £18.9m budget gap. Last year they borrowed £102 million and now the council’s debt is about to be increased to the tune of £152 million (albeit paid for by income from tenants, it is still a huge liability) to carry out maintenance and improvements on the borough’s council homes. In 2012, the Conservative Government’s HRA self-financing settlement allowed local housing authorities like us to keep all our rental income to provide services to tenants. [Anchor]
It goes without saying that people deserve decent homes, but they also deserve efficient, resilient and reliable services from their councils that meet their needs.
The Conservative Administration accrued debts of just under £400 million in 20 years, a quarter of that through the council’s housing estates, but we also purchased income-producing assets in Swindon such as industrial estates, we built schools and invested in growth. For example, the council purchased the new Zurich headquarters for £38 million and leased it back to the company. This deal meant the council owns the highest-quality office building in the town, which generates £300,000 in annual rent that can be spent on vital front line services.
Local government finances are stretched but the budget gap in 2026 is frightening and I can understand why the ‘Peer Review’ of Swindon said that the budget threat could be existential. After two years of Labour running Swindon, will the council still be able to exist independently in 2026?
I await the ‘Devolution’ revolution and sincerely hope it delivers on the Government’s promise of ‘putting power closer to the people’ and is not just a huge distraction and cost to us – I have a suspicion that it will be another layer of Government – and that comes at a cost!
On a final note, did you know Council Tax payers can opt to pay by 12 monthly instalments instead of 10? Applications to pay by 12 instalments for the year ahead need to be made by 15 April.
For more information please complete the form at www.swindon.gov.uk/revsbenscontact or telephone the council tax office on 0345 302 2316.
Your Comments
Be the first to comment on this article
Login or Register to post a comment on this article