RESIDENTS' ASSOCIATION BUDGET AMENDMENTS 24.2.10

Speech by Cllr Clarence Barrett, Leader of the Opposition, in seconding the proposals.

Mr Mayor, in seconding this motion I would just like to put forward some context about funding, highlight our proposals and look at this Administration's approach to Council Tax.

Context

As we all know, the state of public finances is such that some serious funding cuts are inevitable at some point. The worrying thing which has been demonstrated by all the mainstream parties is the ‘knee-jerk' reaction that public funding will have to face massive cuts almost straight away following the election.

We have been through a recession and only just emerging from it, the state of the recovery is still fragile and the sort of budget cuts being peddled in the pursuit of public favour by the mainstream parties will not only lead to service cuts but also to job losses and redundancies. Inevitably that will lead to lost tax revenues, higher benefit payments and higher unemployment. It would be much more sensible to reduce funding over the medium to longer term thus allowing the economy to recover to an extent where jobs are being created and markets stabilised.

These factors need to be taken into account before knee-jerk reactions to a crisis caused by the banking sector means that the public sector, and ultimately our people and communities, suffer the consequences of policies borne out of expedience rather than prudence.

Perhaps this is something our MPs, whoever they may be after the General Election, can raise with the new government.

We have often said in this Chamber that the current central grant allocation system gives Havering a raw deal. Every year we complain about it and every year nothing happens. But in order to give credibility to the case it needs to be consistent and not given to mixed messages.

Imagine the message this sends to the Government, how can we complain that funding levels are inadequate on the one hand then discover all these efficiencies on the other hand and, hey-ho, we don't need all the money after all because we can afford to cut our council tax!

While the funding formula desperately needs a fundamental shake up, the argument put forward by this Administration needs to be consistent, defensible and be able to stand up to scrutiny. By saying one thing and doing another simply undermines the whole argument.

Of course, it is no co-incidence that a 0.4% reduction on council tax has been proposed a mere two months before the Local Elections – but I shall return to that matter shortly.

RA Proposals

Given the proposals put forward by the Administration, this process focuses more on priorities than scale.

I am grateful to the Chief Finance Officer for his comments on our amendments and that the proposals are acceptable for consideration.

I note that the options put forward have risk assessments, which is quite right, and something I welcome. What I find odd though is that the proposals put forward by the Administration have no such risk assessment. Why is this? I do not believe that those proposals are entirely without a degree of risk? So why one rule for one and not the other?

However, our proposals remain fundamentally consistent and reflect not only our priorities and aspirations, but those of the people who live in this borough. Boosting local trade and economies, improving the environment, maintaining our historic buildings – these are all among our strategic objectives and we commit to delivering on these aspirations while providing value for money to the council tax payers of Havering.

Among our savings are a reduction in the level of Special Responsibility Allowances, a reduction and rationalisation in excessive publicity, information and communications - including the Living Newspaper, a rationalisation of equipment and furniture and a reduction in external consultancy costs.

Among our budget priorities are the restoration of free car parking to our out-of-town centres, an improved tree maintenance regime, increased investment in our heritage and a significant increase of £200,000 in dealing with the many pot holes and pavement defects in the borough.

Our priorities come about from listening to our residents all year round. Through our newsletters, websites, ward meetings, phone calls – not just once a year, not just at election time, but all year round, we do not appear just before an election and then disappear, but are a constant, consistent presence to the people of Havering.

This is a budget which listens to residents all of the time rather than some of time. This is a budget designed to stimulate local trade and businesses, improve the condition of our roads and enhance the environment while reducing unnecessary expenditure elsewhere.

Administration Approach

While sorting through my junk mail the other day, I picked up this leaflet announcing, among other proclamations, a 0.5% reduction in council tax. On the face of it a typical last ditch attempt to convince residents that they are getting a good deal. But if we look at the facts the truth is that they are not..................

So, let's look at those facts shall we?

Fact number one - We have heard the mantra from the Leader of this Council that this is the Administration of low council tax rises. But when you look into it, as highlighted by my colleagues, the opposite is true – this Council is the Administration of above average council tax increases! In each of the three years that this Administration has set a council tax it has been in excess of the London Average. Not only that, but this Council charges the third highest council tax across the whole of Greater London.

Fact number two – In the Romford Recorder last week, the Deputy Leader is quoted as saying: ‘We provide stupendous value for money' . But this sweeping claim could not be further from the truth! Perhaps we should ask the people of Havering what they think – and that's exactly what happened in the 2008 MORI survey – The result was resounding ‘no' as 80% did not agree that this council provides value for money – and where did that place Havering compared with all London boroughs – at the very bottom of the table!

There are many adjectives one could use to describe how this Council provides Value for Money but stupendous is not one that comes to mind very easily!

Fact number three – in the February edition of Living the Leader says that ‘…. our disciplined approach to managing tax payers money means that we're better placed than many councils to deliver high-quality services”.

So - does this disciplined approach reflect the fact that council tax debt has increased by £1.3m to £12.5m since 2006? Or that £5m had to be found to plug an overspend in Adult Social Services just six months after setting the budget?

As for high quality services, again let the people of Havering be the judge of that. In the 2008 MORI survey residents were asked in overall terms how satisfied or dissatisfied they were with the way the council runs things? The response was really quite alarming, just 36% agreed that they were satisfied. How did this compare with all the other London councils – well, again a consistent position - at the very bottom of the table.

In putting all these pieces together, we are left with a number of questions, among them:

Will there be a similar reduction next year? No.

Is it right that this Administration should crow about low council rises when it consistently exceeds the London average? No.

Does this council provide stupendous value for money? No.

Are the people of Havering satisfied with the way this Council runs things? No .

At a time when public faith in elected representatives is at an all time low, is it really the right time to hatch this cynical ploy to garner favour with the residents of Havering by putting forward a council tax which would never have happened if there were not an election around the corner.

In conclusion, our approach is to focus on priorities and to respond to the needs of the community. This is done by placing the interests of the people first and foremost and to provide a public service that is based on need and prudence rather than smoke and mirrors.

Mr Mayor, I urge members to vote in favour of our amendments.