LABOUR’S DISMAY OVER NORTH TYNESIDE FINANCE LEGACY
‘The only thing missing was a note from the Tories saying ‘there is no money left’ – Jim Allan
Incoming Labour administration headed up by Elected Mayor Norma Redfearn have uncovered a series of costly decisions taken by former Tory Mayor Linda Arkley as they seek to unpick the Tory legacy of excessive debt, missed opportunities and botched decisions.
Labour are pointing to a huge jump in the council borrowing from £233.901m when Linda Arkley took over from Labour in 2009 to £524.246m when she left office in May.
During the election Labour had warned residents over the excessive borrowing under the Tories and it’s now clear that this was the tip of a very large financial iceberg.
For example, this year budget which was controversially set by Arkley in April against the wishes of the majority Labour group and the Liberal Democrats, contains £21m deficit including £12m in the Tory ‘Change, Efficiency and Improvement’ programme and a further £9m in capital financing.
They have also identified a dramatic fall in the council’s strategic reserve and balances fund from £29.604m (when Labour left office in 2009) to £13.749m as it presently stands.
Labour group leader Jim Allan said
‘The council’s finances are in a perilous state and the Tories have turned a golden economic legacy left to them in 2009 into a set of figures which show the true extent of the council’s problems. Borrowing has doubled, council reserves have shrunk by over 55% and we’ve inherited a ‘Change’ programme which doesn’t reflect reality never mind prudent economics. The only thing Linda Arkley hasn’t left is a note telling the Mayor ‘there is no money left. I’m shocked at what has happened during the past four years and we need to act quickly to stop the situation worsening’.
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