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09/02/09 : Labour "getting the budget balance right in difficult and uncertain times" :
Reading's Labour Cabinet has published its budget proposals for 2009-10, and Leader Jo Lovelock says "As with most councils, this year's budget is more challenging than usual, but Labour's proposals both protect vital services and keep the council tax increase as low as we are able to in the current climate. The increase proposed is 4.24%, which is 99 pence per week on Band D properties."
She adds: "The budget also puts extra money into vital areas of front-line services:
- £2.3 million extra into community care for older people and those with disabilities
- £400,000 for additional social workers in child protection.
- £120,000 Action to drive up standards in private rented housing. (N.B. Further press release to come soon on detail of this).
- £185,000 to maintain the higher level of concessionary fares for the elderly."
"There are a number of factors, which make this year's budget the most difficult for many years. The budget will finally be decided at a meeting of the full council on 24th February. The Labour Cabinet will recommend it to full council, where, as a minority administration, we will wait to see if the other groups are prepared to support the budget strategy, which has been worked on for many months.
As I have previously outlined the financial factors which have put unprecedented pressure on RBC's budget are:
- The economic recession, particularly the huge fall in interest rates: the Council has always been able to manage its cashflow by investing at high rates of interest, particularly for its contingency funds. Obviously, with the huge drop in interest rates, that will not be possible at the moment. We are advised as a result of these uncertainties to maintain a higher than usual balance of at least £4million to cover any unforeseen expenditure during the coming year.
- The Council can usually rely on Capital receipts and Planning Section 106 agreements to help fund the Capital programme. This has largely dried up at the moment. While there will still be substantial investment in schools, transport and housing, with £88million recommended for approval on the back of government grants and allocations, those schemes, such as Park Lane School, which are dependent on land sales, may well be delayed.
- Council Income is also likely to fall, particularly for Leisure pursuits as families tighten their belts and make less visits to the theatre, the leisure centres etc.
- Demographic factors are still adding to the pressures, with the ongoing rise in the number of people needing help from Community care which has to be funded - especially as the Labour group is committed to maintaining the eligibility criteria, which many other councils have cut.
- We may also see a rise in homelessness if mortgage repossessions increase."
"Unlike many other councils we have managed to avoid redundancies as part of the budget, although there have been some vacant posts deleted as part of efficiency savings by managers during the year."
And she concludes: "We believe this proposed budget gets the balance right in difficult and uncertain times."
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