This week’s Advertiser has rightly highlighted the appalling state of Council finances. The Council is now borrowing tens of millions of pounds each month – over £33m in August compared to the (already horrendous) £16.7m in July – just to make ends meet. Both Council leader John Merry and Cabinet Finance lead member Bill Hinds should be thoroughly ashamed of these figures.
The Conservative opposition has been calling for years for an end to excessive spending and waste and these warnings have not been heeded by our profligate Labour Council, who have continued to waste taxpayers’ money year after year. Most Councils have been able to call on adequate reserves in the worsening economic conditions, but here in Salford our Labour leadership have run the precious reserves down to the bare minimum. Our finance spokesman Councillor Ian MacDonald made it clear at the time that this was unacceptable:
Finally comes the question of the Council’s reserve funds. The 4.3 Million Pounds the Labour Councillors are taking from reserves would leave the Council at an extremely hazardous level, and all Council members should have considered very carefully whether they could support such a risk. The Labour majority chose to ignore common sense. We all face a very uncertain future with the British economy precariously positioned. The Council faces staff salary demands next year of increases of 6%. The Government funding for 2009/10 looks even worse than the one we have just been given. Is this a sensible time to reduce our precious reserves by 45% by taking £4.3 Million and leaving just £5.3 Million and a most uncertain future? If the Labour administration can really find no further efficiencies, and we are quite sure that they could, then they should have had the courage to increase the Council Tax to the maximum 5% and not take anything like so much from the reserves. The Labour majority on the Council have decided to make a grossly irresponsible raid on the precious reserves of this City that cannot prudently be supported. It is a risk that we shall all have to share if their policies do not work out. The Conservatives believe a major mistake has been made with your money.
Councillor MacDonald has been proved absolutely right, but of course Cllrs Merry and Hinds did not heed the warning and have continued to spend and waste taxpayers’ money irresponsibly. It is a complete and utter disgrace.
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