I WRITE further to your article on the council’s Medium Term Financial Plan.
To reiterate the financial predicament BCP is in is significant.
Within six months the funding gap for the two years to 2024 have increased from £7.1 million to £31.1m.
The projected annual deficit in five years will be £86.6m without any further action.
This increasing deficit does not take account of the following:
- The current year overspending of £12.6m
- Any reduction in council tax receipt reductions as a result of lowering the council tax increase (promised by the Conservatives) or not achieving the tripling of the tax base increase
- Not achieving £42m of transformational saving over the current and next two years
- Any net costs from pay harmonisation n Any increase in the forecast pay award
- The additional unbudgeted current year spending commitments of £6-7m
The Conservative council has said it will push the government for additional resources but it did not take the ASC precept last year and as a result of this, and earlier decisions to cap increases, BCP has already waived £7.6m of additional funds.
To date the Conservative council has raided reserves (£30m from the financial resilience reserve), used capital receipts to fund current year expenditure, massively increased borrowing and continued to incur unbudgeted costs despite being projected to be overspent by £12.6m in the current year.
The Conservative leadership are being financially reckless and putting political ambition before the interest of future generations.
MICHAEL F COX
Liberal Democrat councillor for Christchurch Town
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