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Labour proposes Council Tax reduction

Broxbourne Labour Leader Alan McCole proposed to reduce the Tories' Council Tax increase, by funding the exceptional John Warner Sports Centre deficit from the Broxbourne Council's balances. These balances are currently 10 times the minimum required by the Audit Commission.

At the budget debate in Broxbourne council chamber, the Conservatives voted against the proposal and instead agreed a 9 per cent rise which will raise just under £250,000. Two thirds of this will be go towards covering the deficit of the troubled sports centre.

The full text of the speech delivered by Cllr McCole (Labour, Waltham Cross) in reply to the Conservative budget proposal is as follows:


"Mr Mayor, tonight I stand here and ask my fellow councillors to put the interests of the many above the interests of the few.

"Sadly, the warnings last year have gone unheeded. There's something rotten in the state of Broxbourne. Things have gone from bad to worse.

"We all know constituents who feel disgust for the way councillors reward themselves. Instead of heeding our concerns about bonuses, this council has given itself a 50 per cent pay rise. Cllr Aitken and I were alone in voting against this. But we hear so many penny-pinching excuses for cutting services instead of investing in them. One thing voters will never forgive is elected representatives who put themselves ahead of their electorate.

"This year, the Government has once again given Broxbourne an above-inflation grant increase. The Conservative Leader asks for our sympathy as a measly 13 per cent isn't enough for her. Unless it has escaped her notice, inflation is less than 3 per cent. Fortunately for her, the Government's new formula means we'll get another healthy increase next year too.

"Now, let's be clear. The Labour Group believe in excellent local services paid for fairly. The Government has put a penny on National Insurance to pay for our health service, and people on the whole are happy to be saving the NHS.

"We know local people want free bus travel for each according to their need, funded from each according to their means. I'll be returning to that, when we consider the Community Services report, but let me make one thing clear.

"Council taxpayers deserve something for the hard-earned money they part with. The people of this borough should not be footing the bill for white elephants. Whether it's the Hoddesdon Node, Cedars Park Gates, replacing the Old Pond fountain or the troubled sports centre. Time and again this council throws money where none was asked for. Yet we all know a thousand and one ways the money could be better spent.

"Our borough suffers from too few people on the buses. We want that put right, following the example of Greater London and the whole of Wales.

"We will put our manifesto to the people on 1 May. Right now, the ruling Group claim to agree with us that disabled people should travel free.

"The Conservative Leader has said she would do this by the time she resigns from her post. Well, the disabled people of Broxbourne shouldn't have to wait any longer.

"If the Leader won't honour her pledge sooner, then let her resign now.

"Yes, actions certainly can speak louder than words.

"But what of the things the ruling Group have achieved?

"The Conservatives shamefully propose to make local taxpayers fill the financial black hole that is the John Warner Sports Centre.

"Not only shameful, but unnecessary. Officers say the sports centre may never pay off its spiralling costs. The ruling Group claim otherwise. Well, I challenge them here and now to put their money where their mouth is.

"If the sports centre deficit really is a one-off up front charge, then let it be paid for out of our General Fund reserves.

"In fact, the council's own reports show a £40,000 deficit even several years from now. To be prudent, we'll take that as the long-term annual revenue cost and budget accordingly.

"Now I wouldn't for a moment suggest spending what we don't have, to pay for what we'll never get.

"But this council has nearly £4 million in reserves earning precious little interest. That's about 10 times the minimum recommended by the Audit Commission. This council has no excuse for making taxpayers cover its troubled project.

"To keep the sports centre afloat the ruling Group propose to sink nearly two-thirds of the Council Tax rise into it.

"We propose instead a one-off contribution of £282,000 from General Fund balances to offset the additional costs of the John Warner Sports Centre and to fully fund the provision of free travel for the disabled.

"This leaves £40,000 to be raised from Council Tax, reflecting the long-term revenue cost of the centre.

"Even repeating this the year after would leave the General Fund Balances well over eight times the Audit Commission's minimum recommended balance.

"Prudence with a purpose, you might say.

"And don't just take my word for it. We've had our budget amendment verified by an eminent member of the Chartered Institute of Public Finance and Accountancy. His name will be well known to the council's Director of Resources.

"Bus passes in future years can easily be met out of the Government's grant rise: we have a further 5 per cent rise to look forward to, plus our regular annual increase and the 13 per cent we have just been given.

"So what's the bottom line?

"Our budget would mean the Council Tax would rise by only 5.5 per cent, as opposed to 9 per cent. The proposed increase in rates would be reduced by more than 3 per cent.

"Our budget would deliver free travel for disabled people.

"Our budget would ensure council finances are spent wisely and spent well.

"Mr Mayor, I have no doubt that members of all parties should have no hesitation in supporting our proposal.

"I move the amendment: That the budget be amended by transferring £282,000 from the General Fund to cover the John Warner Sports Centre deficit and free bus travel for disabled people, and that the Council Tax accordingly be reduced by 3.5 per cent."


Cllr McCole's amendment was seconded by Cllr Malcolm Aitken (Labour, Waltham Cross) but voted out by the ruling Conservatives.


Report filed 27/03/2003

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