Lib Dems warn of 'Tory Tax Timebomb' as funding Gap grows at EHDC

2.59.00pm GMT Wed 4th Mar 2009

There were angry at Penns Place last week as councillors did battle of the EHDC Budget Debate. The controversy began as ruling Conservatives refused to reveal their "earth shattering" revenue raising plans until Budget meeting and then failed to provide any costings as to how they would make enough money to fund their ever increasing funding gap.

The Conservative leader flanked either side colour co-ordinated portfolio holders Cllrs Moon and Millard (in pink and blue shirt and ties) delivered the budget.

What was lacking was any detail as to how the ever increasing budget deficit would be plugged. This stands at 1/2 million for next year 09 /10 but will will be at a whopping 1.2 million in 3 years time.

The Leader (Cllr Ferris Copwer) confidently predicted this funding gap was nothing to worry about as there would be no recession in 2-3 years time. Lib Dem Adam Carew said " We do not share that confidence , nor it seems do many city analysts or even the former Tory chancellor who's view as to length and seriousness of the economic recession is at total variance with EHDC Tories blind optimism. Since the debate we have had melt down Monday this week and are probably not even at the height of the recession yet."

Former Conservative chancellor Ken Clarke states

"Total uncertainty about the length and depth of this recession is one of the most worrying and frightening features of the present situation. Anyone who tells you that he is certain that he knows how long the recession will last is, by definition, an idiot." (see below - Feb 9th 2009)

When pressed the Tories revealed they would be releasing new information in the debate as to how they would plug this gap, ideas that had been rigorously tested and had been worked on behind closed doors for over year . Cllr Cowper said these exciting revenue raising ideas would "shake the whole of Hampshire"

But whilst the rest of the Conservative cabinet and back benchers sat still and said nothing*

East Hants Lib Dems were less than impressed ...

East Hants District Councillor and Prospective Lib Dem MP Adam Carew said: "We were told the they would present us with ground breaking revenue raising ideas that would shake the whole of Hampshire. What we were presented with was a few ideas that might as well have been written down on the back of a fag packet.

"There was no indication of about these projects before the budget meeting and no indication given as to how much money each project will cost or be likely to raise. The Tories are all very keen to pat themselves on their backs. None of this inspires any economic confidence what-so-ever. If a entrepreneur or businessman went to their bank manager like this they would be laughed out onto the streets.

"We can all support projects like green burial sites. These are worth while but there is a moral dimension here - are these really the sort of things our council should be trying to turn into major money spinners to plug an ever increasing funding gap?

"Some of these projects will take time to set up - to put a green burial site in the green gap for example would be a deviation to the local plan and would require planing permission not to mention extensive public consultation and investment before it could even get going.

"The Tories vague idea of providing student accommodation for the University of Portsmouth students in East Hants may be worth considering but not if it is at the expense of local residents who are desperately trying to get on the housing list. Again we have no idea on how this will be achieved or what sort of money it will bring in.

"As to this top secret project X - we can only guess what that is - but it better be good because with the best will in the world the projects that we have been presented with here tonight will probably not be sufficient to plug the funding gap of 1/2 million next year let alone 1.2 million in 3 years time. One thing's for sure chair aerobics and selling a few DVDs will not fund the ever increasing funding gap at EHDC.

"The truth is they failed to raise revenue by selling off public open space and have lost the confidence of the public over Sunday and increased car parking charges in Alton and Petersfield. They have put this council in an economic straight jacket and we are now in recession - their options are running out fast and they have no where to turn. In two to three years time we will be in a serious financial situation and unless they come up with ideas to plug that gap it will cuts in vital services like (the officers report mentioned travel tokens or meals on wheels), job losses or a sudden prolonged hike in council tax."

Finance Shadow and former Lib Dem leader Tony Ludlow said: "This is not a complete budget because it had two huge gaps. There was no detail under the heading Income generation. Under the heading Cost-base reduction, they had another number for next year: £483,000

The Tories thought they had something brand new to say about income generation with ideas like green burials. That is not budgeting. It is staking everything on a wish list. We honestly hope they succeed or it will mean cutting vital services. But the longer they leave it, the harder the problems get. Even if they meet these figures this year, they have to do the same again the following year and, in 2011/2012, they have to raise a million under each category.

Lib Dems believe that people of East Hampshire need to be told the truth about the options. Then they can decide what should be done: savage cuts in services and staff, or a measured way through the problems while there is still time."

Speaking at the end of the debate Lib Dem Leader Jerry Janes said Well we are at the end of this "debate" and I am still waiting for this list of amazing announcements that were supposed to shake us to the core - where is the new sports centre for Whitehill-Bordon, where are the facilities for Horndean and neglected communities South of Butser , and where is the announcement that the Tories will stop penalising the people and businesses of Alton and Petersfield by making them pay to subsidise he whole district through increased and Sunday car parking charges."

The Lib Dems introduced an amendment to restore free parking on Sundays. In doing so Cllr Sam Payne suggested possible ways to fund it - including a pay freeze on Cllrs allowances and no payment for lead councillors (the latter as recommended by the independent review panel and supported by the Lib Dems)

The amendment was defeated overwhelming (again) by the Conservatives. Notably, Cllr Andrew Joy 'Conservative Portfolio Holder for Alton' did not vote for their repeal.