In their 2019 manifesto the Lib Dems promised to rebuild the Cotswold District Council’s finances to fill a potential black hole brought about by a possible reduction in Central Govt funding. In 2020 they announced they would borrow £65m to balance the books but ignored the fact that they were already overspending.
Increase to £76.5m debt
Two years later, in February 2022, having allocated £350,000 for consultants to develop their plan, they were not only going to use all the accessible reserves but also increase the borrowings by £11.5m to a whopping £76.5m (equivalent to £1500 (including interest) for every man, woman and child in the Cotswolds. This would have left the next two generations with a debt to pay off! Why did they need the extra borrowing? Because they had spent too much.
Compare this with 10 years under the Conservatives who absorbed a 60% reduction in Govt funding whilst lowering Council tax and using no borrowing.
‘Spiralling costs and debt for residents’
Despite having increased Council Tax by the maximum allowed of 3.88% p.a.; car parking charges by 40%; removing ‘free after three’; and increasing the green bin licence fee by 14%, the proposed increase in borrowing was as a result of the Lib Dems needing to cover overspending. Included in this spending was:- £1.6m on Consultancy fees and feasibility studies; a 25% increase in Councillors pay; £600,000 to restructure the senior management team and various vanity projects.
But no longer!
The Conservatives called it a high risk ‘borrow to invest’ strategy making huge assumptions about borrowing rates and likely rates of return on investment categories all of which could change. CDC is a small Council with neither the resources nor experience to deliver this agenda. Even the Councils own paper described the proposals as risky.
Following pressure from Sir Geoffrey Clifton-Brown in Parliament and ourselves here in Council, the LibDem Administration has at last recognised that, particularly with rising interest rates, this plan was too risky and have rescinded it.