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Use £100m reserves to reduce County Hall cuts, say Leicestershire Liberal Democrat group

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Tuesday, January 15, 2013
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Leicester Mercury

Some of County Hall's millions of pound of reserves should be used to ease the pain of planned cuts to jobs and services, opposition councillors say.

Leicestershire County Council's Liberal Democrat group said the Conservative administration was wrong to be holding £100 million in its accounts while embarking upon a scheme to save £79 million over the next four years.

  1. Leicestershire County Council's Liberal Democrat group has called for County Hall's reserves  to be used to reduce cuts

    Leicestershire County Council's Liberal Democrat group has called for County Hall's reserves to be used to reduce cuts

Last week, the Tories outlined their budget for the next financial year and warned cuts in Government grants would lead to all services being reviewed for savings.

They warned 1,100 council posts could be axed to help balance the books and that council tax would have to rise by 1.5 per cent from April 2014.

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However, the Conservatives said they still did not know where £30 million of the £79 million would be saved.

Liberal Democrat group leader Simon Galton said: "The Conservatives are talking about massive savings but every year they are building up the sum that sits in the bank accounts.

"Three or four years ago the reserves were £50 million. Now they are double that and that has happened in what has already been a period of substantial cuts.

"We appreciate the need for reserves but we think the level should be set at £60 million or £70 million.

"We are not suggesting a spending spree but the money should be spent carefully to ease the pain of the cuts that are going to come."

Councillor Galton also urged the Tories to identify where the unknown £30 million would be cut before the county council elections in May.

He said: "Those cuts will happen within the term of the next council so people have a right to know what they will be when choosing a council.

"The fear is that a lot of the bad news is being kept back until after the election."

Conservative deputy council leader Byron Rhodes said anyone who advocated the spending of the reserves now did not understand local government finance.

He said: "The level of reserves build in what we have been told we need by our accountants.

"It is committed for things we know we will need money for down the line."

He said it included £23 million set aside to pay for staff redundancy costs.

Coun Rhodes also said it would take time to establish where the additional £30 million of savings would be found.

He said: "We do have some time because these savings are in years three and four of the plan we have now.

"We cannot rush these very important decisions and we have to consult with the public."

County Hall Labour group leader Max Hunt said: "The fact we are facing years of cuts has demonstrated that George Osborne's plans for the economy have not worked.

"We will be working to steer the Tories away from making cuts that will affect the most vulnerable people in the county – young and old.

A consultation on the Conservatives' budget proposals runs until January 27.

The results will be considered by the cabinet on February 6 before a final decision is made by the full council on February 20.

www.leics.gov.uk/ budgetconsultation

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  • Profile image for Bob491

    by Bob491

    Tuesday, January 15 2013, 10:56PM

    “Demo, you are a silly boy aren't you!

    But I'm not surprised you are in complete denial at Ed Balls correct view of Osborne's reckless austerity that is ruining the country, except for his wealthy friends and party donors that is.”

  • Profile image for democrat

    by democrat

    Tuesday, January 15 2013, 7:42PM

    “Oh dear Bob - suggesting that Ed Balls has the answer to any question (other than let's spend more money that we don't have) is economic illiteracy on a grand scale

    I could rebutt the rest of your comments but frankly I would rather stick pins in my eyes”

  • Profile image for Bob491

    by Bob491

    Tuesday, January 15 2013, 7:02PM

    “Quote: "Bob you also seem to be advocating" and "I bet you believe"

    Hamilton_Paul, do not put words into my mouth merely in order to satisfy your right wing conscience!

    Firstly I am very much anti Conservative. I am experienced and wise enough to realise that most of them are far too selfish and greedy for my liking (I used to be a member in my naive younger days!).

    Secondly as I have said many times I have never voted Labour or for any left wing party in a local or general election.

    Thirdly the Labour government (which I did not vote for) did not get everything right but it was far superior to the discredited Con Major government. It was also far superior to this current inept Con government of the highly dishonest Cameron and useless Osborne.

    As for Ed Balls, he has been proved completely correct when he called for a slower pace of austerity. The inept Osborne is putting up the debt after hammering the unwealthy, and has consistently flatlined the economy after Brown had got it moving again at some cost. A triple dip recession is on the cards.

    The greedyguts bankers and financiers in America and Europe have an awful lot to answer for, but the Cons and their tax avoiding friends are just making a bad situation worse and worse, except for their own over wealthy friends and party donors who are doing very nicely thank you.

    As for Greece and Spain, they are also suffering from reckless austerity measures and it may take them thirty years or more to recover from the stupidities of their politicians. If so few people are working, and many of those refuse to pay tax as they should, how on earth can they reduce the deficit? Without economic growth, they never will!”

  • Profile image for Hamilton_Paul

    by Hamilton_Paul

    Tuesday, January 15 2013, 2:13PM

    “Bob- I have no problems seeing issues for both sides- although in all the posts I have read I have never seen you say anything critical of the Labour party once. I bet you believe Tony Blair was correct and the war with Iraq was right.

    I quite agree that Major government caused an economic mess mainly trying to keep the government in ERM. I will also agree that the best decision Gordon Brown either made was, the fiscal rules to make sure we did not go into the Euro. Why he then decided to sell a percentage of our gold to buy Euro's I do not know!!!

    I also agree that the tax code is to complicated hence the reason why people/ companies get round paying tax- sadly most of this extra tax code created by Gordon Brown. I believe a flatter tax rates would help.

    Again I agree the Conservatives did agree to keep to the governments spending commitments for political reason- a decisions I think was wrong- as was ring fencing spending on the NHS and Aid. I think there are ways of saving money on health spending (read Ben Goldacre book Pharma to see where drug costs could be saved).

    The reason why the country started to grow under Gordon was we were spending borrowed money, also Europe had not gone into melt down like it has in the last 2 years. Even the Labour party agreed there would need to be massive spending cuts come the election as Alistar Darling agreed. I hope you will agree Bob that the Labour party should of done more on bank regulation? also it should of not given Fred Goodwin a knighthood?

    Bob you also seem to be advocating us that there should be no spending cuts we should just keep borrowing! Well if you do that you will end up like Portugal, Ireland and worst of all Greece- it is a head in the sand mentality.

    To be honest all the politicians are current MPs/ Councillors tinkering round the edges- although I think Gordon Browns henchman Miliband and Balls will make it a lot worse (and it can be a lot worse than it is- Greece for instance) than Cameron and Osbourne.

    You are correct that is a matter of opinion/ judgement- and at elections we get the chance to vote and show that opinion/ judgement. For those who say that there is no one who represents my views- well stand yourself or get someone you do agree with to stand rather than blaming others.”

  • Profile image for colarrey

    by colarrey

    Tuesday, January 15 2013, 12:55PM

    “What a silly idea. What will they pay the Councillors expenses with?

    On a serious note, if we, and most other countries are in debt of millions or billions, who are the creditors?”

  • Profile image for Bob491

    by Bob491

    Tuesday, January 15 2013, 12:30PM

    “But it is the direct result of inept Con Government policies that the debt is going up, not down, despite the hammering the unwealthy are being clobbered with.

    And it the Con government that is famous for not wanting to regulate anything, especially their friends and party donors in the banks.

    By the way, Hamilton_Paul, you failed to mention the four years of surplus under Labour - the first time in living memory this has happened and which occurred after the dreadful economic mess under the Con Major government; or that the Cons happily agreed to continue with Labour's spending plans if they had won the 2005 general election.

    And you failed to mention that economic growth was coming along beautifully in May 2010 before the inept Con Chancellor Osborne destroyed it, no doubt hoping to become famous as the first ever triple dip Chancellor.

    And you failed to mention the vastly increasing number of tax avoiding wealthy individuals and companies, many of whom are friends and party donors of the Cons, which also push up the debt enormously.”

  • Profile image for Hamilton_Paul

    by Hamilton_Paul

    Tuesday, January 15 2013, 12:01PM

    “The reason why we are having cuts is that we as a country spent to much money!!!

    The last Labour government apart from the first 2 years when they kept to the Tory spending plans spent more money than they got in despite having year on year growth!!

    Crash Gordon thought he ended "Boom and Bust" when basically the growth was built on debt- now sadly we are the ones that are going to have to pay!! Although this is nothing like the crash that will come when the markets decide America has finally got to start paying off its massive debt!!!

    People can try and blame the Tories for everything but it was not under their watch the banking crash happened it was Labour. A Labour government that did not regulate the banks and had a Chancellor and PM in Gordon Brown who loved spending time with bankers- remember him opening the new HQ of Lehman Brothers or giving Fred the Shred his Knighthood!!!”

  • Profile image for Bob491

    by Bob491

    Tuesday, January 15 2013, 11:29AM

    “The cuts were bequeathed by greedyguts financiers and bankers, many friends and party donors of the Con party.

    The cuts are now increasing because of the inept performance of the inexperienced, out of touch, millionaire Con boy Chancellor who is forcing the debt upwards whilst hammering the unwealthy and forcing the closure of increasing numbers of small businesses.

    The cuts are also increased by widespread and rapidly increasing tax avoidance by the wealthy, many of whom are friends and party donors of the Con party.

    Eastonian is the one with the selective memory!”

  • Profile image for Eastonian

    by Eastonian

    Tuesday, January 15 2013, 9:03AM

    “Cllr Hunt has got it all wrong!! We knew over 2 years ago we would need "years of cuts" to fix the deficit kindly bequeathed to the nation by New Labour. Oh yea of the short, selective memory.”

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