Opposition council members claim that the government’s financial lifeline to Bradford Council will continue to “weigh heavy on the district for many years to come.”
Bradford Council will receive “exceptional financial support” from the government on Thursday; this means the council will be able to borrow money and sell properties to help balance its budget.
The authority had threatened to declare Bradford Council practically insolvent last year if such help was not provided.
On Thursday, 19 Councils received this kind of funding, including Bradford.
With the help, the Council may balance its budget by using a combination of asset sales and borrowing.
Support of £120 million has been approved for the upcoming fiscal year and £80 million for the present one.
Council leaders have stated that even with the backing, they will still need to move on with a number of cutbacks, facility closures, price increases, and a 4.99% increase in council tax.
“Whilst my Conservative Group colleagues and I are clear in our minds that the Council’s financial woes are of the Labour Executive’s making,” said Councillor Mike Pollard, the Conservative Group’s spokesman for finance and projects, in response to the news that the Council would receive support. “We are pleased that the Secretary of State has decided to throw them a lifeline, due to the effects upon the residents of Bradford district and the services that they need, if he had not done so.”
“To be clear, though, the press headlines from yesterday claiming that Bradford had “avoided insolvency” are playing about with terminology.
“When Councils use Section 114 Notice to request assistance, the Government typically takes additional steps, but the severe underlying issues and burdensome terms associated with the substantial loan facilities requested in these cases are the same whether Section 114 Notice is used or Bradford is offered an alternative form of exceptional financial support.”
“The Government response to the Labour-run Councils request for help places Bradford Council very high on the list of financial failure in Local Government,” stated Councillor Brendan Stubbs, the Bradford Liberal Democrats’ leader. “The need for £220 million to balance this year’s and next year’s accounts will weigh heavy on our district for many years to come.”After years of failure, the Conservative Government and the Labour Council will also need to borrow and repay this £220 million. To make up for their errors, they have decided to obtain a credit card, which the local taxpayers would have to pay back over the course of 20 years.
“The Council’s strategy to put things under control calls for five years, of which the first is covered by the Emergency Financial Support.
“Before things are fixed, it is highly likely that Bradford will return to Government with the beggarly pot.”
The Bradford Greens’ leader, Councillor Matt Edwards, stated: “This is still a very challenging situation for Bradford Council, even if it is a relief that we won’t be issuing a 114 notice. More significantly, not just in this budget but also in subsequent budgets, households will continue to face significant service reductions and an increase in council tax.
“Whilst there are definitely failings in this current Labour administration which have led us down this path, the sheer number of Labour, Conservative and Lib Dem councils up and down the country requesting support this year shows that the real issue here is the chronic underfunding of local services by this Conservative government.”Anyone expecting a Labour administration to correct this will be extremely disappointed, given Keir Starmer’s refusal to commit to doing so.”
Jonathan Carr-West, Chief Executive of the Local Government Information Unit, made reference to the decision to give 19 Councils financial help with exclusions, saying, “We know how desperate these councils were to receive this exceptional support.”
It is a last-minute respite that prevents an abrupt financial disaster for them. That makes the news pleasant. However, this should not be seen as an act of kindness from the government.
All they are doing is permitting municipalities to borrow money and sell their own property. The announcement made today should not be seen as a long-term, viable fix for local government finances. We can only go so far with increasing debt and selling off the family jewels.
