12/12/07 - Labour MP, No Understanding Of Council Funding

The Editor,
Swindon Advertiser

Dear Editor,

On Sunday 9 December, Anne Snelgrove, MP for South Swindon, and myself appeared on the BBC 1 Politics Show discussing local government budget issues.

I made the point that all Councils were under huge financial pressure due to inadequate, below inflation grant settlements from government and the growing pressure on our social care budgets due to the ageing population along with extra responsibilities put onto local government without the funding to match.

The reality is that we are forced to increase spending by millions each year, £10 million in latest round, to cope with these new pressures and responsibilities and yet deliver low levels of council tax. We are managing the challenge for now, but all councils are finding themselves in an increasingly difficult position.

We have been making the case to our MPs that Swindon’s funding formula seriously disadvantages the people of Swindon and we have shown them the proof. We are in the bottom quartile of funded authorities in the country and yet the fast growing town in the country.

Anne’s unhelpful reaction was to say that Swindon is a wealthy council because we have been selling land and therefore we do not need any further support. This response is deeply worrying as it reveals that she has no understanding of local government finance. Capital receipts cannot support revenue spending directly; it is illegal to do so. All capital receipts are fully re-invested in capital projects such as schools and care homes to correct years of under-investment in the borough. To borrow for these projects is near impossible because of the burden it would create on the revenue budget.

I have to ask Anne, therefore, whom does she represent on these matters: her constituents or the government? If there is any doubt over this issue I am happy to hold a public debate on the reasonableness of government funding support for Swindon at any place or time of her choosing.

Cllr Roderick Bluh

Leader of Swindon Borough Council