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Isle of Wight Labour

for the many, not the few

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LABOUR COUNCILLOR WORKS WITH INDEPENDENTS TO DELIVER ALTERNATIVE BUDGET

The Isle of Wight's Labour Councillor, Geoff Lumley has today published the 'Alternative Budget' for Full Council that he now traditionally proposes each year in response to the Conservative budget proposals. For the last three years he has been the sole councillor to do this and he has secured increasing levels of support at each step.

This year Cllr Lumley, in the unfortunate absence of a Labour colleague, has worked with members of the Council's Independent group to produce an alternative budget. The proposal will be seconded by Cllr Ian Stephens, Vice Chairman of the Council. Cllr Lumley also hopes to get support for the proposals from other independent councillors, many of whom have made suggestions for the alternative budget.

The Alternative Budget, although still proposing a 2.5% increase in Council Tax next year, seeks to lessen the effects of some of the savage £11million cuts proposed by the Conservative leadership at County Hall by instead reducing spend on: -

areas that bring little benefit to Islanders, such as media communications and performance measurement;
excessive carbon emissions;
wasted energy usage for some street lighting;
over ambitious capital programmes that are never delivered;
services duplication in the ENO scheme, whilst replacing it with a better-focused community warden scheme;
loss-making harbour and leisure operations;
over-provision for so-called 'doubtful debts';

and makes a novel suggestion that high-earning Council managers set a 'we are all in this together' austerity example by giving up 15% of all earnings above £90,000 pa - potentially raising more than £150k.

In return for these nearly £3 million of efficiencies, the Alternative Budget proposes for example:-

keeping Westminster House open;
putting £1million back into Supporting People, which with the £1.9m still to be properly used for this service rather than other services restores the Cabinet proposed cut entirely;
reversing over £0.5million of the cuts to budgets for vulnerable and homeless people;
cushioning the Council's withdrawl from care facilities like Haylands Farm, Osel and the Riverside and Medina Centres;
reducing the residents car park permit increase to £50 pa less than the leadership proposes, with pensioners still entitled to a £50 permit;
reinstating the youth music service subsidy;
recognising that financial support to unions cannot credibly be cut;
reinstating a budget for public realm works;
and restoring capacity to the Highways service.

Cllr Lumley said, "Although I was intending to do this Alternative Budget on my own I am pleased that a number of independent councillors, and particularly Ian Stephens were keen to be involved. Ian has been a real support. Consequently we have a proposal that addresses a very wide range of spending areas. This is a budget alternative that addresses climate change issues more robustly, as well as redirecting bureaucratic expenditure towards services for vulnerable people. That is what many Islanders want and I hope that this alternative will command wide support in the community if not the Council Chamber. I would have liked to do more, but the mess the Council's finances are in after the last 5 years will take some time to tackle. "

(Formal proposal follows)

BUDGET MEETING - 24 FEBRUARY 2010


AN ALTERNATIVE BUDGET PROPOSAL- EXCLUDING DEDICATED SCHOOLS GRANT










£000
Base Budget

131,989






Pension Fund Increases

450
Adjustments in 2009/10 Base

511
Adjusted Base Budget

132,950






Add:




Inflation


1,550
Capital Financing Costs

1,360
Fire Model for Change

300
Highways PFI Preliminary Costs
981
Landfill Tax Increase

320
CRC Energy Efficiency and Renewables
80
Identified Service Pressures per budget proposal
6,533
Other Costs - Net - per budget proposal
320






Deduct:




Savings delivered through Service Savings and Delivering Better Services - excluding Fire and Schools - per budget proposal -11,029
Identified savings adjustments per budget proposal
-247
Further cost reductions per budget proposal
-654






Service Reductions from Current Budget:

Reduce Capital Programme by £10m - borrowing costs year 1 -400
Review and Reduce Communications Budget -500
Review and Reduce Performance Budget
-250
Abandon Environment & Neighbourhood Officers scheme -404






Additional Savings Identified:


Reduction in salaries above £90k - 15% exemplar -163
Smart' Reductions in Street Lighting times
-250
Leisure Facilities - reduce trading deficit
-50
Harbour Facilities - reduce trading deficit
-57






Carbon Emissions:



Additional Revenue Costs to Support Reduction in Carbon Emissions - including affordability of capital investment 240
Plan to Reduce Carbon Emissions by up to 10% each year -650






Investment in Service Priorities:


Reduce Public Realm cuts

100
Reduce proposed Cowes Ferry increase
30
Restore various Care facilities funding by 25% 120
Restore Carers Advocacy cuts
13
Reduce Supporting People cuts
1,000
Reduce Client Numbers savings
250
Reduce Learning Disability eligibility cuts
250
Restore cuts to homeless services
64
Restore Music Service subsidy
72
Restore 'Review of financial support to unions' 50
Restore RCC cuts

27
Retain Westminster House for vulnerable people 215
Restore 'Highways service ' capacity cuts
60
Remove 'Internal Home Care review' cuts
33
New Community Wardens (10)
250






Car Parking Proposals:



Replace proposal to increase permits to £200 900
Standard Parking Permit - increase to £150 pa (excluding pensioners) -450












Net Expenditure

132,964






Financed By:



Formula Grant

61,397
Reduce Provision in Reserves for 'Doubtful Debts' 500
Council Tax Demand (net of CF +/-)
71,067




132,964






Tax base (band D equivalents)
55,167.0
Collection Fund balance

-87






Proposed Band D Council Tax
1,289.80
Proposed Tax Increase (%)
2.50






Proposed: Cllr Geoff LUMLEY (Labour)






Seconded: Cllr Ian STEPHENS (Independent)

Promoted by Ray Collins, General Secretary, the Labour Party, on behalf of the Labour Party, both at 39 Victoria Street, London, SW1H 0HA.
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