COUNCIL BUDGET BLACKHOLE

Press Release:

"How on earth has the current IW Council budget blackhole doubled in just 4 months ? From £3.5 million in December, to £6.5 million in April. And why are the leadership no longer taking successful 'management action .....to reduce spend in identified pressure areas' ?" (Sources: Cabinet report 8.12.09, 'Update on the Overall Financial Position').

These are important questions being asked by Labour's Cllr Geoff Lumley in the light of a presentation to be made to the largely toothless, majority-controlled Overview & Scrutiny Committee next Monday.

See http://www.iwight.com/council/committees/Overview & Scrutiny Committee/1-2-10/agenda.pdf

Cllr Lumley who although presenting the only opposition budgets for the last three years is not a member of this committee. However, in his preparations for an alternative budget this year he has been staggered to learn that the Council leadership appears to be abandoning attempts to balance this year's Budget.

Cllr Lumley said, "At the December Cabinet, meeting we were told that although there were in year financial pressures they would, as you would expect, manage them through to a balance. The presentation on Monday tells us that they expect this years overspend to amount to £6.5m next year, suggesting to me that Council finances are out of control.

£3.5 million of this overspend is related to Adult Social Care and Learning Disabilities Services, which were projected to overspend by just £1.2 million in December. This is a three-fold increase in less than a quarter. And in a Kafka-esque move later on in the Scrutiny presentation the Council leadership propose to cut back Adult Care Services next year by - yes, you guessed it, £3.5 million. It beggars belief."

"Quite frankly I expected more of a political leadership so keen to sell itself as financially competent. This is gross mis-management of the Council's finances and the people to suffer will be those who can ill-afford it. If they aren't up to the job perhaps they should step aside and let others who could do the job ?"