I was surprised to read in last week’s paper the new Labour administration complain that they wish there was more money in the county council’s budget.
They effectively blamed the previous Conservative administration for a low level of reserves.
Councils keep reserve funding for a rainy day – in case of emergencies, catastrophes or natural disasters. Reserves are not used to supplement day to day spending.
The reality is that the council’s reserves are at their highest level since 2008 as a result of prudent decisions we took to protect frontline services, but also keep council tax as low as possible.
If the Labour administration believe the council’s budget should be higher so they can increase spending, there are only two main options open to them – lobby the Welsh Government to address the unfairness in the funding formula, which consistently underfunds Monmouthshire or increase council tax.
When there are already concerns about cost of living and energy prices this winter, I hope the Labour councillors will keep council tax as low as possible, but it’s the primary lever to increase funding.
For years we have lobbied Welsh government to review the funding formula which gives Monmouthshire £1,174 per head of population, yet some neighbouring councils receive as much as £1,881 per head. If Monmouthshire was funded just to the average level in Wales we’d have an extra £40million to spend on frontline services each and every year.
Because times have been tough in local government funding and without wanting to pass the burden on to council taxpayers, we ran a lean council in Monmouthshire. We never put up council tax just because we could – we raised it by the minimum possible to protect the services residents rely on. We made many of our services more efficient to make best use of funding. Instead of closing leisure centres we started modernising them, so instead of being a drain on council resources, they’re breaking even or generating a modest income. We also set up an investment fund to generate income, which was maligned by Labour but saved us increasing council tax. We borrowed money to buy Newport Leisure Park. After interest payments, the rent yields a net profit that goes directly into frontline services and saved us raising council tax. Despite supporting the purchase at the time, Labour have criticised this, but without innovation or changes to the funding formula, there’s only one way to raise more money – increase your taxes. I hope they won’t opt for the easy route.
Richard John
County Councillor for Mitchel Troy and Trellech United
Conservative Group Leader
Monmouthshire County Council

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