Wednesday 10 March 2021

Southend Council's Budget - "..something is rotten in the state of Denmark"!

 

It is unfortunate that at such a challenging time for our Town, businesses and residents the Council has been controlled by a rag tail coalition of Labour, Liberal Democrats and Independents who regrettably have failed to rise adequately to the challenge.

Their recent annual budget was depressingly predictable in its lack of imagination and realism. Fortunately following uproar from local businesses and residents supported by the Conservative opposition the ridiculous proposal to raise seafront parking charges to £24 per day was scaled back - however the increase still remains unacceptably high as does the increase in council tax. These measures can only hit the Town Centre, our businesses and residents when many are already reeling from the financial effects of the pandemic and resulting lockdowns.

However of greater concern is the underlying refusal to face economic reality, abandon political vanity projects and lay a solid base for the future.

As is often the case the most interesting information is available in the papers prepared in support of the Administration’s budget.

I was particularly intrigued by the comments on the Medium Term Financial Strategy. The MTFS currently shows a projected budget gap for the Council of £20.7 million for the following four financial years. This is a massive hole and is in the context of a budget for next year which in addition to making the money grab on parking charges and council tax referred to above also requires £2.5 million from Reserves in 2021/22 to balance the budget. The MTFS is also based on assumptions as to levels of central government funding and future interest rates which if wrong would signpost additional major problems.

Most interestingly the budget paper comments:

The Council may need to increase focus on the delivery of its services in a more targeted way, concentrating on delivering services to those residents who most need the Council’s support. The Council may also need to review and change its approach to tailoring the delivery of its many statutory services. To underpin these new arrangements the Council will continue to reposition its role as one to work alongside the community, its residents and businesses, to try to improve the many contributing factors that affect people’s lives.

This “possibility” is in my view a statement of the obvious. It was the underlying policy followed by the Conservative administrations between 2007 and 2014 who grasped the need to change the approach to make the Council more focussed and financially efficient – an view that has clearly slipped in recent years. We believed that reserves were to be protected as an important safety net, fees and council tax needed to be kept competitive to support businesses and residents, and  spending needed to concentrate on core services for those in need coupled with creative investment which would deliver for the Town economically in future years.

The question is why have the Administration not followed this approach in the current budget rather than shying away from difficult decisions and rolling the problem on to future years. In the meantime increasing borrowing on projects such as the acquisition of the Victorias is only destined to make the situation worse.

I can’t help but bring to mind the words of the Bard… “Something is not right, seriously amiss...If the authorities knew about the problems and chose not to prevent them, then clearly something is rotten in the state of Denmark.

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