Alternative Budget Suggests Senior Council Officer Pay Cuts (UPDATED)

Alternative Budget Suggests Senior Council Officer Pay CutsA combination of opposition Isle of Wight councillors have released a budget as an alternative to the one proposed by the current ruling Conservative council.

Their suggestions are wide ranging, including what they call “a novel suggestion that high-earning Council managers set a ‘we are all in this together’ austerity example by giving up 15% of all earnings above £90,000 pa – potentially raising more than £150k.”

Proposed alternative reductions
While still proposing a 2.5% increase in Council Tax next year, their plan seeks to save nearly £3m by reducing spending on the following areas (in their words)

  • areas that bring little benefit to Islanders, such as media communications and performance measurement;
  • excessive carbon emissions;
  • wasted energy usage for some street lighting;
  • over ambitious capital programmes that are never delivered;
  • services duplication in the ENO scheme, whilst replacing it with a better-focused community warden scheme;
  • loss-making harbour and leisure operations;
  • over-provision for so-called ‘doubtful debts’;

What would be saved
Those behind the Alternative Budget say the outcome of this is that many of the cuts proposed by the Conservatives, including areas affecting vulnerable people would be saved. They list them as …

  • keeping Westminster House open;
  • putting £1million back into Supporting People, which with the £1.9m still to be properly used for this service rather than other services restores the Cabinet proposed cut entirely;
  • reversing over £0.5million of the cuts to budgets for vulnerable and homeless people;
  • cushioning the Council’s withdrawl from care facilities like Haylands Farm, Osel and the Riverside and Medina Centres;
  • reducing the residents car park permit increase to £50 pa less than the leadership proposes, with pensioners still entitled to a £50 permit;
  • reinstating the youth music service subsidy;
  • recognising that financial support to unions cannot credibly be cut;
  • reinstating a budget for public realm works;
  • and restoring capacity to the Highways service.

Who’s behind it?
It’s a combination of Independent councillors and Labour. Cllr Geoff Lumley (lab) has for five years presented an alternative budget. This year he’s worked with the Independent councillors, lead by Cllr Stephens with the assistance of Cllrs Bacon, Churchman, Welsford, and Whittle.

Both of the main proponents have put out statements …

Cllr Lumley said, “Although I was intending to do this Alternative Budget on my own I am pleased that a number of independent councillors, and particularly Ian Stephens were keen to be involved. Ian has been a real support. Consequently we have a proposal that addresses a very wide range of spending areas. This is a budget alternative that addresses climate change issues more robustly, as well as redirecting bureaucratic expenditure towards services for vulnerable people. That is what many Islanders want and I hope that this alternative will command wide support in the community if not the Council Chamber. I would have liked to do more, but the mess the Council’s finances are in after the last 5 years will take some time to tackle. ”

Councillor Ian Stephens: ‘Hammering services and staffing levels can only be done for so long and I believe that the ‘Alternative Budget’ gives a new focus on the Eco Island, and Carbon Reduction Commitment where real savings can be made.. Whilst holding Isle of Wight Council Tax to 2.5%, we have kept the Housing, Homeless and those in need, to the fore throughout our recommendations. We have endeavoured to keep a good level of support to stakeholders, partners and clients and this will allow services to evolve during periods of change and recession. We have, managed to keep ‘No increase for Pensioners Parking’ that will lessen the impact of recession on the elderly. I feel we, in the Isle of Wight Council, need to address our own shortcomings with regard to not retrieving money owed to us, and running services at a loss”¦..the hard pressed Isle of Wight tax payer deserves better’

Councillor Jonathan Bacon said, “Since the leadership’s original proposals were made public for the first time on 1st February, the concern and distress that many of the proposed cuts has generated has been very clear. Exacerbated by a lack of proper consultation prior to their publication and an apparent disregard for the vulnerable and elderly, the proposals have met almost universal opposition. The alternative budget shows that far more appropriate steps can be taken to deal with the current financial difficulties which avoid removing support and care from those most in need of it. I hope that common sense will prevail and that the budget that is eventually adopted will be one to benefit the Island and Islanders”.

Full details of the proposed budget to follow.

ISLE OF WIGHT COUNCIL
BUDGET MEETING – 24 FEBRUARY 2010
AN ALTERNATIVE BUDGET PROPOSAL
– EXCLUDING DEDICATED SCHOOLS GRANT



£000
Base Budget 131,989


Pension Fund Increases 450
Adjustments in 2009/10 Base 511
Adjusted Base Budget 132,950


Add:
Inflation 1,550
Capital Financing Costs 1,360
Fire Model for Change 300
Highways PFI Preliminary Costs 981
Landfill Tax Increase 320
CRC Energy Efficiency and Renewables 80
Identified Service Pressures per budget proposal 6,533
Other Costs – Net – per budget proposal 320


Deduct:
Savings delivered through Service Savings
and Delivering Better Services – excluding
Fire and Schools – per budget proposal -11,029
Identified savings adjustments per budget proposal -247
Further cost reductions per budget proposal -654


Service Reductions from Current Budget:
Reduce Capital Programme by £10m
– borrowing costs year 1 -400
Review and Reduce Communications Budget -500
Review and Reduce Performance Budget -250
Abandon Environment &
Neighbourhood Officers scheme -404


Additional Savings Identified:
Reduction in salaries above £90k – 15% exemplar -163
Smart’ Reductions in Street Lighting times -250
Leisure Facilities – reduce trading deficit -50
Harbour Facilities – reduce trading deficit -57


Carbon Emissions:
Additional Revenue Costs to Support Reduction
in Carbon Emissions – including affordability
of capital investment 240
Plan to Reduce Carbon Emissions by
up to 10% each year -650


Investment in Service Priorities:
Reduce Public Realm cuts 100
Reduce proposed Cowes Ferry increase 30
Restore various Care facilities funding by 25% 120
Restore Carers Advocacy cuts 13
Reduce Supporting People cuts 1,000
Reduce Client Numbers savings 250
Reduce Learning Disability eligibility cuts 250
Restore cuts to homeless services 64
Restore Music Service subsidy 72
Restore ‘Review of financial support to unions’ 50
Restore RCC cuts 27
Retain Westminster House for vulnerable people 215
Restore ‘Highways service ‘ capacity cuts 60
Remove ‘Internal Home Care review’ cuts 33
New Community Wardens (10) 250


Car Parking Proposals:
Replace proposal to increase permits to £200 900
Standard Parking Permit – increase to £150 pa
(excluding pensioners) -450




Net Expenditure 132,964


Financed By:
Formula Grant 61,397
Reduce Provision in Reserves for ‘Doubtful Debts’ 500
Council Tax Demand (net of CF +/-) 71,067

132,964


Tax base (band D equivalents) 55,167.0
Collection Fund balance -87


Proposed Band D Council Tax 1,289.80
Proposed Tax Increase (%) 2.50

Image: Chris Isherwood under CC BY-SA 2.0