A 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
