'Tories Budget Performance gets worst and they are relying on windfalls'

4.15.49pm BST (GMT +0100) Tue 12th Sep 2006

Four months into the 2006/07 Financial Year the Tory budget approved in February against public protest and Lib Dem advice is overspent by £12.1M.

Councillor Brian Hoare

The Tory administration at County Hall prepared and approved this budget and this overspend of almost 4% is evidence of their poor financial skills. The size of the overspend has been reduced by a windfall of half a million pounds resulting from the recent increase in interest rates which has boosted short term income. This is the same increase in interest rates which has raised the mortgage payments of council tax payers.

Last month the cabinet introduced a £5.1M of savings to rescue the budget overspend. This includes another windfall of one million pounds from excess capital receipts which releases revenue spending on capital expending.

If the £5 million was so easy to save without effecting services why did the Tory administration not identify them in February? It is easy to quote a £5 million saving, we will see if they can deliver them without effecting more services.

Currently the people of Northamptonshire can have little faith in the financial competence of this administration.

Lib Dem Councillor Brian Hoare says:

• "We told the Conservative administration last February that their budget was not realistic and could not be delivered and we continue to be proved right"

• "In their first year of office the Conservative Administration overspent by £5 million but blamed the previous Labour Administration for poor budgeting. They can no longer use this excuse as this is a Tory Budget and they are not delivering it"

• "This Conservative administration claimed that they would not tolerate overspends last year but failed to control the budget. We are seeing an even worst situation this year. They have shown themselves unable to control their budget and it will be the citizens of Northamptonshire who will bear the cost"

The Cabinet Report shows:

• £7.6million of savings out of the £35.5 total budget cuts approved last February "that are no longer considered deliverable."

• £4.5million is still being shown as an overspend, plus an additional £200,000 overspend occurring last month.

The Cabinet Report states that the County are being forced to find £5.1 million pounds of savings to offset this overspend and now identifies where these savings will be made. This includes:

• Vacancy Management (i.e. not filling job vacancies)

• IT Savings

• Reducing repairs and maintenance

• Income generation

• Contract savings

• Reducing general operating costs

At the Cabinet Meeting the Liberal Democrats demanded know what impact the removal of £7.0 million from reserves this year will have on next year's budget.