23.11.18
Northamptonshire Labour chiefs write to government to end ‘disarray’ of £133m black hole in public finances
Leading Labour politicians in Northamptonshire have claimed the county council has a £133m black hole in its finances and have written to the government calling for urgent intervention in the county.
Prominent figures from the party at every council in Northamptonshire, as well as former minister Sally Keeble and parliamentary candidates Gareth Eales and Beth Miller, drafted a letter to be sent to communities secretary James Brokenshire, claiming the county council leadership team’s management of finances poses a threat to the vulnerable people in the area.
The ten Labour members who signed the letter also called for greater transparency into the council’s procedures and finances, starting with a public inquiry into Local Government Shared Services— a partnership service with Cambridgeshire County Council, Northamptonshire County Councils, and Milton Keynes Council— and NEA Properties, which is owned by the council but is now at the centre of an investigation after a county councillor’s partly-owned company allegedly received a payment of £60,000 from the authority’s firm.
The letter argued that the council’s leadership team will have to find £133m needeed to balance last year’s budget, break even this year, and find the necessary £80m in funding for when the council will disband in favour of a single or multiple unitary council in 2020.
As things stand, the council is on course to end the 2018/19 financial year £18m over budget, taking through a £35m deficit from 2017/18.
To find the funding, the Labour chiefs argued, the council must forgo its “unachievable” stabilisation plan outlined in September, and instead discuss with Brokenshire the option of a “recovery package” to save the council’s finances.
The letter, reported in the Northampton Chronicle, said: “We believe that the inability of the Conservative administration to manage the finances or services poses acute risks to the most vulnerable people in Northamptonshire.
"We also want to see much greater transparency of the county’s procedures and finances, including a public inquiry into LGSS and NEA which have been responsible for some of the council’s most egregious financial dealings."
"We are therefore asking for an urgent meeting to look at a recovery package that will provide a sustainable basis for the county’s services over a period of time.”
A Ministry of Housing Communities and Local Government spokesperson said: “We recognise the seriousness of the situation at Northamptonshire Council, which is why we sent in Commissioners to help them to resolve their financial situation and ensure they set a balanced budget.
“We are in close contact with the Commissioners as they help the authority turn things around.
“The council has statutory duties towards children and adults which they must fulfil, and they have said keeping vulnerable people safe is one of their priorities. Where authorities fail to do this, we will not hesitate to intervene.”
Last week another government-appointed commissioner was brought into the council in a bid to steady the county’s struggling children’s services.
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