Opposition councillors have warned BCP Council’s finances are “out of control” after this year’s forecast overspend has surged by £5million in two months to reach nearly £32million. The projected overspend stood at £27million in July, but the amount has climbed to nearly £32million an increase of almost 20 per cent in just eight weeks. The announcement has come before the council’s quarter two budget report is released, which is expected in November.
Cllr Patrick Canavan, BCP Labour Group Leader said: “The indication from Cllr Cox that the overspend is continuing to grow should come as no great surprise. The council’s financial position is likely to get worse before it gets better as some of the measures being taken will take time to work through. “The Red Spending controls are too little too late and make little difference to the overall budget. “It seems inevitable that BCP will have to seek exceptional financial support and another big increase in council tax can’t be ruled out. “Interestingly Cllr Cox did rule out cuts in services but exactly what remains to be seen. The administration is going to have to take those decisions soon and residents deserve answers as what steps are planned to get us out of this mess.”
Councillor John Beesley, BCP Conservative Group Leader, said: ‘It is deeply worrying that the projected overspend by BCP Council has increased even further from the £27 million reported. The Council approved the budget in February when we were told by the Lib Dem administration that the budget was balanced, prudent and sustainable. Clearly it was not. Worse still the planned savings for this year have not been achieved in full. “The Conservatives are demanding that the administration make public their properly quantified recovery plan with clear and regular reporting on whether and how it is working. We haven’t yet been given any details of the further £5 million overspend, but unless the Council really has a credible plan to get the finances back on track residents will be forced to accept fewer services and increased taxes very soon. “The budget for next year is going to be the most difficult ever for the Council. it seems likely that the administration will be applying again to the government for a further inflation busting increase. This on top of the new town council precept which most residents rejected. There seems to be no clear plan about what to do and what we are being told appears to be too little too late, especially in parking and seafront services which despite the best summer weather ever have traded below budget. “It is clear that the Council’s finances are out of control.”
Councillor Duane Farr, BCP Reform UK Group Leader said: “BCP Council’s financial position continues to deteriorate, residents deserve to know how the council has allowed matters to reach this point. “At a time when residents are being asked to pay more in council tax, services are under pressure and the council is struggling to balance its books, the public quite rightly deserves an explanation. “Reform UK has repeatedly raised concerns about the administration’s spending priorities, including costly schemes and additional layers of local government, while residents continue to face rising bills. “Simply announcing further spending restrictions and recovery plans is not enough. Residents need transparency, accountability and a credible plan to bring the council’s finances under control. “BCP Council cannot keep expecting taxpayers to pick up the bill for financial mismanagement. Our residents deserve a council that lives within its means and puts essential services and taxpayers’ money first.”
Green Party Councillor Rachel Pattinson-West said “It is concerning that the gap has grown exponentially since the last budget. The administration needs to act rapidly to show how they can make changes to avoid a section 114.” Cllr Pattinson-West added that “There is suggestion that the government will wait until 2030 to make changes to support social care. This is, at best, kicking the can down the road, and at worst completely negligent.”
