Interesting view stevebradley. Thanks.
Could you share what the alternatives are to the cuts in services please.
CUT INTO TWO PARTS - PART ONE
I'm not saying that there can be no cuts, as that is clearly not true. As the smirking note left in the Treasury by Liam Byrne MP when he left in May 2010 put it - " sorry old chap, but there's no money left". The country has a major financial problem that needs to be addressed. The government has passed local government what is, in my view, a disproportionate share of those cuts, and has also front-loaded them in an inequitable manner. So sadly cuts are needed, even if I don't agree with the way they've been handed out by the government.
That said, Lambeth has a CHOICE on what it chooses to cut and what it doesn't within the financial settlement given to it by the government. Labour have repeatedly pushed the myth that they have no choice, which has enabled them to blame others for their own choices and their own dirty work. Here is a non-exhaustive list of alternative steps they could have taken which would have led to less cuts taking place this year, and which would in turn have saved key services like libraries, Park Rangers, One O'Clock clubs etc.
1) COUNCIL RESERVES
- All councils require reserves for a rainy day. But Lambeth has total reserves of £120m - the 3rd highest in London. That's YOUR money collected by the council in council tax and stuck in a corner earning sod all interest with no clear plan of when they'll ever get round to using it, or what they'll use it for.
- Of those reserves, the vast majority are 'ear-marked' and rightly can't be and shouldn't be touched. In otherwords, they're allocated towards an actual or notional activity that is important for the good running of the council.
- The problem is that there are other such reserves earmarked for purposes that, on balance, aren't that important any more, or are important but don't need the particular size of sum allocated to them.
- Labour have just accepted Finance Officers' advice that all Lambeth reserves are sacred, and haven't done their homework in looking at every single sum individually and asking themselves ' Is this sum really required for that purpose any longer, and is it more prudent left here or used to save a particular service' ? Finance Officers love having little pots of money squirelled away that they can whip out if they ever need to. Even if they never need to, they just like them being there. But they're not the ones facing the political flack for shutting libraries etc etc.
- Don't take my word for it : just look at a couple of examples of Earmarked Reserves within Lambeth's budget :
£4m squirrelled away for the last 6yrs under the 'invest to save' programme.
- This is up-front funding to spend on things that should save the council even more money in return. A sensible idea.
- Yet after SIX YEARS neither officers nor the administration cllrs have come up with any ideas for what to spend it on ! Which begs the question - when is the brainwave going to hit them ?
- They've had 6yrs, they've done nothing with the money, they have no plans for what to do with it in the future, and it has sat there earning almost no interest. So let's use it to save some services rather than watch it continue to gather dust.
Civil Emergency Fund
- The council has set aside a rolling £1m in case we get hit with swine flu or a nuclear attack or some other huge, unforseen catastrophe.
- Again, this is usually prudent stuff and money that you don't realistically expect or hope to use.
- But why is £1m the magic number here ? Would it be any less prudent to have £750k or £500k set aside for the next year or two, use the rest to save some services, and then go back to the magic £1m allocation figure again in 2-3yrs time ?
- £500m taken out of there would save all the Parks Rangers and most lollipop ladies, for example. Or save more than two libraries or multiple youth services.
- Some may even argue that all of that £1m should get used to save services in the short term, before being restored again in 2-3yrs.
- But there is no evidence that this sort of analysis has been done and these sort of options even considered.
Litigation Fund
- Every year Lambeth puts aside over half a million quid in case it gets sued outside of its normal legal budgets etc. And every year the money goes largely unspent. Add to that the fact that having a pot of money there in case you get sued is likely to see some officers take a more belligerent attitude when faced with legal challenges.
- Again - why is £500K the magic number ? If that sort of sum is being used every year, then it should be reflected in the operational busget and not in reserves. And if that sort of sum is going unused year in year out, then it would question whether it is genuinely needed at all.
-Taking £100k out of that pot for each of the next two years would still leave money for emergencies but would also enable 10 lollipop ladies to be saved to make walking and cycling to school safer, for example, or keep a few yough facilities open. Instead, we're stuck with money gathering dust which may only encourage belligerence amongst officers when faced with legal challenges.
- Then there's the over £20m of reserves that are completely unallocated. That's cash collected from you going unused, and with no plan for what rainy day it's supposed to be there to tackle. Why not take a small amount of those unallocated reserves to keep services going for the next 2-3yrs, and then return to the current or even higher level of reserves once the funding situation improves afrre then ? If now isn't the time for Lambeth to spend some of its abnormally high reserves, when is ?
- In response to this suggestion, Labour just trot out their usual lie that the Lib Dems left Lambeth with no reserves. Not only do they know that's a plain lie (there was £26m in 'Adjustment A' money reserves in 2006, which Labour well know), but it does nothing to answer the question of why haven't they scrutinised the ear-marked reserves to see which ones are REALLY needed, and why they insist on squirrelling away unallocated council tax money every year to never use, even in the current financial crisis.
- And if Lambeth has the THIRD HIGHEST reserves in London, that suggests that we're being far too prudent at such a critical time. It would in no way be imprudent or risky for us to aim to hold the average level of reserves for a London borough over the next 3yrs, use the money that releases to save key services, and then seek to build the reserves back up again after 3yrs.
2) COUNCIL TAX
- Lambeth has the lowest council tax collection rate in London, and the 5th lowest in the UK.
- By just doing properly something they should be doing anyway - collecting what they're owed - they'd have a few million extra every year to spend on services.
3) EMPTY HOMES
- Lambeth has more empty council-owned homes than any other borough in London - 1,500. More than double the figure of 4yrs ago. 20% of all empty council homes in the whole of London are now found in Lambeth.
- By leaving these homes empty - many for 3-4yrs - the council not only loses rent, but has to pay itself council tax out of the tenants' rent pot at the rate of £1.5m per year. Think about that - tenants in Lambeth are being charged an extra £1.5m EVERY YEAR just to give another department in Lambeth the council tax on the homes that Lambeth Living can't be bothered to sort out. Madness.
- If these empty properties were brought back into use it would enable the council to reduce rent charges by £7 PER WEEK for every tenant.
4) EMPTY OFFICES
- Lambeth already has an excess of office space. Once it makes their proposed job cuts, it will have even more empty spaces.
- Lambeth is also holding on to office blocks that it can no longer use as they are unfit for purpose under employment regs (H&SW, DDA) e.g. Porden Rd.
- To address that they should sell some of the office blocks - in particular Phoenix House in Vauxhall, which was bought to meet a short-term problem in accommodation in 2005 (i.e. to enable the unfit offices to be decanted and then either rennovated or disposed).
- Far from selling in a slump (EricJarvis), it is estimated the council would pocket (from memory) approx £45m in one go and realise a £5-10m net gain vs purchase price if it sold Phoenix House now.
- And what about that wreck of a building on Porden Rd that has been left empty for years now ? Is leaving that council-owned wreck derelict more important than saving libraries etc ?
- Just like the reserves, Labour seem obsessed with collecting unused and un-needed office blocks with no idea of what to do with them. I would personally rather see unneeded ones go if it meant libraries, One o'clock clubs etc stayed open instead.
- Labour's sole response on this is to say to the Lib Dems 'but you bought Phoneix House'. Yes. But so what ? That doesn't mean selling it now at a profit isn't the right and smart move to make.