£8.5 Million Budget Gap Means More Austerity Ahead for Guildford Borough

Published on: 20 Jul, 2018
Updated on: 21 Jul, 2018

An £8.5 million black hole in Guildford Borough Council’s budget will mean yet more cuts can be expected, it was revealed at Tuesday’s (July 17, 2018) council Executive meeting.

At the meeting, approval was given to the latest financial assumptions, that will allow preparation of the outline budget for 2019-20 and medium-term planning for the period up to 2023.

In a press release a council spokesperson said: “Despite a successful combination of focused savings, wise investment and effective management, the council still faces significant funding challenges.”

Cllr Nigel Manning.

At the meeting Cllr Nigel Manning, lead councillor for finance and asset management, a portfolio he has regained after two year’s of mayoral duties, explained: “Next year’s budget and beyond will be very challenging, particularly as we got no general grant funding at all in 2018-19 and will have to pay money back to the government from 2019-2020.

“We provide a wide range of vital services that our communities rely on and invest locally to help our economy flourish, so although we start from a strong financial position, the situation is set to get harder. We predict a budget gap shortfall for the Council of about £8.5 million in the next four years.”

Zöe Franklin the Guildford Liberal Democrat parliamentary spokesperson, responding to the news said: “When both the Conservative government and Conservative-led county council reduce funding year by year it’s no surprise that eventually good finance managers will produce a negative budget.

Zoe Franklin

“It’s easy to cut costs by cutting services left, right and centre and ignore the public outcry but now we’re down to the bone the pain of further cuts will get worse for everyone involved.

“Don’t expect the coming years to be easy or pleasant in Guildford if we continue with the overall Conservative strategy of cut, cut, cut”

The council’s press release continued: “For 2019-20, we face a negative grant, where the council pays more money from retained business rates to the government. The amount of negative grant we will pay in 2019-20 is nearly £700,000. We estimate that this could total £5.7m between 2019 and 2023.

“The local impact of proposed Local Government Finance changes from the national ‘fair funding review’ and 75% business rate retention from April 2020 is also not clear. From the little information available, we expect a significant shift of resources away from district and borough councils towards funding statutory social care services at county councils.

“As we receive no grant, this will mean more of our business rates will be redistributed away from Guildford Borough Council. So under a system of 75% business rate retention it is likely that we will retain less than 4% of business rates collected in our borough.

“Due to the uncertainty about our funding, we predict a revenue budget deficit of between £7.7 million and £11.5 million over the next four years. Our best current estimate is that the deficit will be about £8.5 million.

Cllr Manning added: “To address the budget gap, we will build on the £10 million of savings we’ve made in the last five years and carry on with our extensive programme to transform our services. We also aim to maintain the second lowest share of council tax in Surrey and invest wisely to generate extra income and help regenerate our borough.

“On a wider scale, we are lobbying the government to try to improve the funding situation on an individual basis and through all available channels such as the Local Government Association. It’s not going to be easy, and we face some difficult decisions, but we are determined to keep our residents at the centre of everything we do.”

Responses to £8.5 Million Budget Gap Means More Austerity Ahead for Guildford Borough

Sue Hackman Reply

July 19, 2018 at 4:24 pm

Zoe Franklin of the Lib Dems is right to note the double whammy of national Tory cuts pressing down on local Tory budgets, but the Lib Dems are not in a strong position to back up their local aspirations with a national government that will change the ‘cut’ mentality.

Only the Labour Party has the national numbers, polls and policies behind its local candidates to deliver something better for Guildford residents.

Give us a go this time: we are bringing something fresh, sincere and people-focused to politics.
Brian Creese Reply

July 19, 2018 at 10:41 pm

Hold pending author’s response

The tragedy of austerity is that it is a slow-motion car crash. We knew what was going to happen years ago and we know it is still set to get worse.

As each piece of legislation is passed making life harder for the poor, the infirm and disabled, schools, prisons and, of course, local government, we also know it will take years to actually have its detrimental effect. Nonetheless, it is a strange situation – a Tory Government has almost bankrupted Tory Surrey County Council. This has an impact in Guildford which is under a Tory borough council, the funding of which is also being squeezed to breaking point.

This shocking policy, pursued for purely ideological reasons, not economic ones, is causing destruction across the land and even the Conservatives seem to have forgotten why it all started.

The only solution is to get rid of the Tories at all these levels so we can get society working again. But I have to ask Zoe Franklin where her memory has gone? Wasn’t it the Lib Dems during the Coalition years that designed and implemented austerity? Wasn’t it Nick Clegg who sold his party down the river in aligning it with Tory cuts aimed at the most vulnerable? Only Labour offers us a way out of this nightmare we are sleepwalking towards.

Brian Creese is a spokesperson for the Guildford Labour Party
Howard Smith Reply

July 20, 2018 at 10:06 am

It’s a bit rich from Zoe Franklin to complain about austerity. I’m wondering if this is the same Zoe Franklin who, as a member of the Lib Dems supported the austerity programme initiated by the Coalition government?

Unless Zoe wants to admit it was all a big mistake?

Only the Labour party is in a position to end austerity and get back to believing and investing in this country. Labour is currently ahead in the polls. Our schools, our NHS and the future of our children depend on Labour winning next time.
Sean Jenkinson Reply

July 20, 2018 at 3:20 pm

To all those saying give Labour Party ago, get rid of Diane Abbott and Jeremy Corbyn and I will think about it, If not you cannot count on my vote.
- Sue Hackman Reply
  
  July 20, 2018 at 6:49 pm
  
  Thank you, Sean, for a frank response. Neither Dianne Abbot nor Jeremy Corbyn will be standing in Guildford, but local people who live in your ward will try to win your vote.
  
  There is a big advantage in the grassroots approach adopted by the new leadership of the Labour Party and that is that they have opted to make leaders subservient to the majority. I like the way that Labour leaders cannot take their members for granted. It has made it possible to hold in a wide range of opinion in the party. You get a real say in policy now.
  
  Personally, I think the days of ‘follow my leader’ are over in politics. The general population has acquired a new cynicism about silver-tongued leaders. They want authenticity even if it is untraditional. You may not like Abbot and Corbyn, but I think they are open to democracy and to principle. You can influence them in a score of ways inside the Labour Party. Don’t dismiss the chance to be part of it. I’d be glad to meet you if you want to know more.
- Wayne Smith Reply
  
  July 21, 2018 at 3:12 pm
  
  I would suggest that John McDonnell (shadow chancellor) is another one that needs to go before Labour can be considered electable.
  
  It’s the same old ideology but what they don’t tell us is how they’re going to pay for those things? Re-nationalisation of railways and utilities at zero cost! Really? NHS, schools, house and road building. Investing in industry. Sounds great but things weren’t all rosy the last time Labour were in power. Has anyone forgotten the note left by Liam Byrne (Gordon Brown’s Chief Secretary to the Treasury) to his Tory successor which read …. ‘I’m afraid there is no money.’ Says it all.
  
  A suggestion for The Dragon – over the past few months there have been letters and comments from various Labour “activists” publicising their points of view but very few have identified themselves as being Labour candidates or working for/supporting the local Labour party.
  
  Not all of us are familiar with them, so perhaps it should be a Dragon requirement that those writing on behalf of a political party identify themselves as such? There may be Conservatives too.
  
  Where we know a correspondent is a politician or has a current role on a political party”s committee we add that description but we cannot tell who is a member of which party, any more than any other publication can. In any case, we believe our readership is intelligent and discerning and able to indentify such comments, as you have done. Ed
  - Wayne Smith Reply
    
    July 21, 2018 at 8:15 pm
    
    Thanks for considering my suggestion regarding identifying those with a political axe to grind. Perhaps the answer is for them to be up front and identify themselves!
Tom Hunt Reply

July 20, 2018 at 5:34 pm

The Lib Dems have always advocated a sensible policy towards spending, and during coalition successfully moderated the excessive cuts the Tories would otherwise have made, following the mess the last Labour government made of the economy.

Howard Smith’s and Brian Creese’s incredibly naive comments just serve to show how disastrous a tax and spend Labour government would be. If the question involves fiscal responsibility, Labour is not the answer.
- George Dokimakis Reply
  
  July 21, 2018 at 4:44 pm
  
  I think Mr Hunt forgets that raising tuition fees to £9,000 is not moderating excessive cuts but enabling and imposing them.
  
  Locally the Lib Dems have been enabling the Tories for years, not opposing them or abstaining in crucial votes such as the Local Plan.
Stuart Green Reply

July 26, 2018 at 11:05 pm

Let’s not forget the massive failing of GBC when they wasted at least £1.2 million of taxpayers’ money on The Village. Would have taken the budget black hole down a bit if they hadn’t gone down that road. Meanwhile we, the long-suffering council tax payers continue to suffer the inept councillors that makeup GBC.
Rick Sanchez Reply

July 29, 2018 at 8:58 pm

I agree with Stuart Green’s comment. If the taxpayer’s funds were efficiently spent in the first place (across a range of costs) then there obviously wouldn’t be the need to cut back so much.

The politicians (of all the main parties) have the answers but choose not to implement them because of short-term unpopularity. Proportionately (to income) the wealthy pay very little in terms of taxes, yet are the ablest to do so. But they avoid taxes and minimise their contribution that would improve society for the benefit of all.
Mary Bedforth Reply

July 31, 2018 at 2:50 pm

Why has the house adjoining Burchatts Farm Barn been empty for years since the GBC employee who lived there left. The garden was planted and maintained but is now an overgrown mess.

The house itself was refurbished and the brickwork was repointed.

Does anyone ever hire out the Barn? It has a desolate look.

Is there anyone in charge?

A spokesperson for GBC responded: “The flat was let to the caretaker that managed Burchatts Farm Barn until it ceased being a hire venue. The flat was then used to accommodate a member of GBC staff and then more recently was let on the open market between 22/7/16 and 21/7/17.

It is currently empty as it has been marketed for a commercial let with the flat and the hall below as part of a package. The hall and flat are currently being marketed for a commercial let and the council are currently negotiating with a doctor’s surgery to take a lease over the premises.

The building is maintained because it remains a valuable council asset however it is likely that any tenant will wish to modify the inside of the property to make it suitable for their specific use.

The property remains part of the Parks and Leisure property portfolio and is managed in conjunction with our colleagues in Asset Development.
Valerie Thompson Reply

July 31, 2018 at 6:47 pm

How Sue Hackman thinks that Corbyn and Abbott “are open to democracy and to principal”. Corbyn is on the far left and accused of being an anti-semite while Abbott seems to be simply keen to promote herself.

Labour, at the moment, is unelectable by rational people. Labour councillors in the borough will be led by their leaders, just as the Conservatives have been. Neither are to be trusted.

The Conservatives break promises within days of making them; look at their present attitude to green belt development, or closer to home, their promise not to put up parking charges in Guildford to help businesses, and then increasing them within a couple of weeks.

As for the GBC budget gap, I support all critical questions regarding the waste by GBC on “The Village”, and wonder what they are thinking of, spending over £800 thousand pounds on the Tunsgate “improvements”, while planning yet more extravagance on Chapel Street.

It’s as if they do not recognise their civic duty to provide facilities and funds for the elderly, children, disabled, homeless and needy residents at the very least, let alone generating worthwhile projects for the general public