Council promises no cuts to Eastbourne frontline services as it makes savings

The promise came from Liberal Democrat cabinet member for finance Steve Holt, as he introduced Eastbourne Borough Council’s annual budget for 2020/21 on Wednesday (February 19). 

According to meeting papers, around £3m of the £6.5m target is considered to be either “low risk or already certain”, while the rest would be “challenging but achievable.”

The full budget also includes a two per cent increase in the borough council’s share of council tax, leaving an average band D household with an annual bill of £2,039.17 once increases from other authorities are factored in.

Cllr Holt said: “I know of no authority which is not making cuts to their services and we will need to find significant savings and income targets over the coming year.

“This is a huge challenge to this authority and we will work with anyone, who has ideas on how we generate more income or find additional savings. 

“We will not, however, cut frontline services or reduce the amount of money we allocate to the community and housing grants or the devolved budgets. 

“This funding commitment represents over £400,000 a year and is used by those groups to fund vital support services. We keep this spending commitment because it is the right thing to do.

“I have great confidence in both councillors and officers to rise to challenge and continue to show the long vision to generate income and make savings.”

Cllr Holt also said the council is set to increase its homelessness prevention budget by £1.3m this year, in an effort to reduce the amount the council spends on temporary accommodation.

He also criticised the actions of the Conservative government, arguing that local government financing is ‘broken’.

However, the Liberal Democrat budget plans saw criticism raised by the council’s Conservative group, which described the authority as being in a ‘parlous’ financial situation.

Speaking on behalf of his group, Meads councillor Cllr Robert Smart argued the savings targets were not credible and could lead to the authority’s reserves (currently estimated at £2.4m) being wiped out in a year. 

He said: “Let’s stop and think. Is £6.5m in savings and income targets credible within a £15m net service expenditure? If you vote for this budget then you do think it is credible?

“Of course you can do the small things. You can raise £100,000 by putting up parking charges, to equate to East Sussex [County Council] levels. And this shows the hypocrisy of the Lib Dems opposite opposing those increases.

“But £6.5m is just not credible. Even if £3m is ‘low risk or already certain’ – which is questionable – the remaining £3.5m cannot be covered by the already exhausted general fund balance.”

Cllr Smart also raised concerns about the £2.86m the council is set to spend on servicing its loans this year, describing the total amount owed as a ‘debt mountain’.

He also criticised the council for what he considered to be a lack of financial transparency throughout the last year drawing particular attention to the fact the council’s new external auditor has not yet signed off last year’s accounts. 

While the council maintains that it expects unqualified opinion on its accounts once the audit is complete, Cllr Smart said the lack of sign-off meant there was ‘no solid base’ for its financial planning  which could have impact on reserves.

Despite these criticisms, no amendments to the budget were put forward, however, with Conservatives claiming it due to the “lack of full financial information.”

This came in for criticism from council leader David Tutt and others, who accused the Conservative group of ‘hypocrisy’.

Cllr Tutt said: “Every year you come along and criticise things which we then prove to be successful. You forget about the fact that you criticised them and then criticise the next part of our plans.  It is all so lazy, because there is no alternative. 

“It is hypocritical when they talk about audit, because it is the first year that has happened since we took control and they know we changed our auditors in that 12 month period.

“I want them to do their job properly and go through the council with a fine tooth comb. They have come across things here they haven’t seen in other authorities because we are doing things that other authorities are not doing in order to serve the public.

“It is hypocritical when they talk about debt, because only this week we have seen Sajid Javid leave government because Boris Johnson wants to borrow more money. He wants to copy the Eastbourne model.

“But let’s not forget the reason that this council and every council across the UK are facing massive financial challenges is because their government has taken money from local government.”

Following further discussion the budget was agreed on a majority vote.