Sunday, September 14, 2008
Councils income down by over £300,000 in first quarter of the year!
At last nights meeting of the Council’s Resources Scrutiny Committee Mike Heenan, the Cabinet Member for Resources reported that income for the first quarter of the year was well below budget.
It appeared that the Council’s the income from car-parks, bereavement services, and leisure activities was actually over £300,000 down on what was predicted in the budget. While on its own this figure is worrying it has to be remembered that when this is projected forward the Council’s budget look as if it will be over £1 Million below target at the end of the year.
During the debate Mike Heenan was reminded that when the budget for this year was originally put forward opposition Councillors had warned that the figures would only balance if the predicted income levels were met, and even then the Conservatives were warned that this would be difficult to achieve. They were told that raising prices did not necessarily mean that income would rise as in many cases higher prices just mean fewer people use the service. However this arguement was just pushed aside with plenty of ridicule being heaped on those who dared suggest it!
What does concern me now is how the Conservatives will try to balance this years budget and what they will do next year to prevent the same problem arising. It doesn’t take an economic genius to work out that to balance the books either savings in expenditure has to be made or income has to rise. As the Tories have promised they will not increase Council Tax above the rate of inflation they have little room for maneuver. This year they have already made swingeing cuts in services including scrapping the Summer Play Scheme for local children, and have put-up charges right across the board. Next year will no doubt be much of the same, although there cannot be many real saving left to be made without front-line services being affected.
What ever is decided one thing is for sure, it will be the residents of Stafford Borough that will suffer!
It appeared that the Council’s the income from car-parks, bereavement services, and leisure activities was actually over £300,000 down on what was predicted in the budget. While on its own this figure is worrying it has to be remembered that when this is projected forward the Council’s budget look as if it will be over £1 Million below target at the end of the year.
During the debate Mike Heenan was reminded that when the budget for this year was originally put forward opposition Councillors had warned that the figures would only balance if the predicted income levels were met, and even then the Conservatives were warned that this would be difficult to achieve. They were told that raising prices did not necessarily mean that income would rise as in many cases higher prices just mean fewer people use the service. However this arguement was just pushed aside with plenty of ridicule being heaped on those who dared suggest it!
What does concern me now is how the Conservatives will try to balance this years budget and what they will do next year to prevent the same problem arising. It doesn’t take an economic genius to work out that to balance the books either savings in expenditure has to be made or income has to rise. As the Tories have promised they will not increase Council Tax above the rate of inflation they have little room for maneuver. This year they have already made swingeing cuts in services including scrapping the Summer Play Scheme for local children, and have put-up charges right across the board. Next year will no doubt be much of the same, although there cannot be many real saving left to be made without front-line services being affected.
What ever is decided one thing is for sure, it will be the residents of Stafford Borough that will suffer!
# posted by Barry Stamp @ 5:12 PM 
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