THE FINANCIAL QUANDRY, which Castle Point Borough Council finds itself placed in by severe government spending cuts, is not easily solved. That fact is illustrated by so few readers responding to the question: ‘What would you cut?’
Jean Burroughs finds the question impossible to answer. ‘The problem,’ she says in her email, ‘is that so few people know what the Council spends its money on.’ And she goes on to say: ‘I just feel fortunate that I am not one of the councillors forced to make these decisions.’
Most residents will agree with Jean’s sentiments. And many will be surprised to find how few options councillors actually have in making necessary cuts or increasing the Council’s revenue to plug the funding gap. As the inset breakdown shows, the vast majority of the Council’s income, and expenditure, is in the area of Housing and Council Tax Benefits; but it is an illusion to think that any of that income can be increased, or spending reduced; because it is simply money administered by Council, on the Government’s behalf, regarding Social Security Benefits.
As the snow falls on Canvey Island and residents make final plans for the festive season and undertake last minute shopping, it is sobering to realise that next year will be financially tight for all Castle Point constituents – and islanders in particular.
If councillors are to have any hope of maintaining front line services, they have no option but to increase residents’ Council Tax and give careful consideration to raising rents and business rates. Free parking will also come under the spotlight as councillors attempt to maximise much needed revenue.
It is especially difficult to see what they can cut. Corporate and Democratic Core tends to be a catch-all bucket for officer salaries; members allowances; stationery; advertising; election expenses and staff costs which, when looked at individually, might present some areas in which savings can be made. But they are unlikely to make a significant contribution to the overall saving requirement. And much of those costs are, in any case, the result of Council adhering to Government requirements (such as their recently imposed liquor and gambling licensing role).
There is no saving available from the Increase in Reserves figure – which is just a snapshot of Council finances at the end of the year to balance its numerical accounts. Most of the money here, for example, was earmarked for projects not completed at the year end (and has since been spent completing them).
Just to put things into perspective, the savings needed by Council are equivalent to some 15 per cent rise in Council Tax (which is currently capped at 4.5 per cent).
Canvey Town Council, for which only islanders pick-up the costs, has no option but to increase its charges to residents next year; but that charge is not restricted by government capping.
The Town Council can charge islanders whatever it likes.
Perhaps the question this Blog should be asking is: How much more can you afford to pay in increased Council Tax next year?
The answer to that might help local politicians in their decision making.
If you are snowed-in by the present weather conditions (or have nothing else better to do): please take the opportunity to respond to the three 48-hour straw polls in this Blog’s STOP PRESS column. One is for all Castle Point residents concerning their Council Tax; another is for islanders regarding Canvey Island Town Council charges; and last, but not least, there is another poll for business owners, regarding their business rates…
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