Hidden Risks in the Tory Budget
Liberal Democrats welcome the single figure increase in Council Tax and the Tories allocating £1m to key worker housing and £100,000 to improve the energy efficiency of the Council's buildings in response to Liberal Democrat initiatives. However, we oppose the way this figure has been achieved because this Conservative budget is not only a missed opportunity to improve services for Surrey's residents by cutting wasted spending by the Council, but it carries hidden risks that could lead to cuts to Council services later in the year.
Not enough is being done to improve the condition of the roads and footways, which require, according to an answer given by the Executive member for Transport in July last year, an investment of £100m to bring them up to a reasonable standard. Surrey's residents have many times requested more activities for young people.
The Council also needs to provide extra funding to support carers as only a small proportion, about 5% currently receive support. These necessary service improvements could be achieved by reducing three budgets:
- Spending on consultants which was £16m last financial year and nearly £14m in the first five months of the current financial year.
- The communications budget, which increased by nearly 36% from the last financial year to the current year.
- The policy initiatives budget which is not necessary to front line services.
The "savings" included in the administration's budget report were published at the last minute, only one week before the Council meeting to approve the budget. Consequently, the figures have not been properly scrutinised. In fact, the Executive admitted last week that the savings included in the budget "require further validation". This begs the question whether they are realistic and achievable. The Executive also stated that it "will consider future savings in more detail once the 2005/06 budget has been agreed". This probably means cuts to front line services being announced mid way through the year, as happened with bus cuts last year.
The largest reduction is in the Adults and Community Care service, where a £4.7m reduction is proposed. This is, supposedly, going to be achieved through market management savings and market shift. If these savings are not realised it will mean reductions in services for the most vulnerable members of our community.
The figures also reveal that the administration has yet again failed to tackle the real problems the Council faces and to bring spending under control. For example, the Council is having to spend an extra £700,000 on home to school transport and agency placements of nearly £1.6m because the administration has not done enough to provide in-County special needs places. The Council is continuing to spend high costs on sending children outside the County.
Potential problems with the Council's waste contract mean there is still a risk that PFI credits of up to £17m will have to be repaid to the Government. Not surprising the waste contract is identified as a significant risk to the Council. I think that this administration's budget is disappointing and unimaginative. It is about time they started to take responsibility for their own actions and stop blaming everything on the Government. It is about time the administration started to tackle the real problems of wasted spending on consultants and communications and put that money where it is really needed - front line services.