Alternative budget attacked by Lib-Dem

Reporter: BEATRIZ AYALA
Date online: 17/02/2009

LABOUR’S opposition budget was branded all fur coat and no knickers by Councillor Lynne Thompson, Cabinet member for finance and resources.

Members of last night’s performance and value for money select committee examined Labour’s alternative budget.

Proposals included a freeze on Oldham’s council tax for the second year running and £500,000 savings from efficiency targets, reducing managers and back office staff, plus procurement costs.

A total of £200,000 would also be used to introduce free swimming for all Oldham residents from September.

Councillor Thompson said spending money raised from the council’s efficiency savings on a one-off giveaway would only benefit the majority of Oldham households by 47p a week, the price of half a bag of chips.

She said: “Ever since we announced the plan, Labour fought tooth and nail against bringing in efficiency partner KPMG and shedding more than 500 council jobs. Now you would think it was their idea. They not only embrace it, they want to axe staff quicker still.

“We set out on this painful path to balance the books and to provide money to meet the challenges ahead. The prize is financial stability and a chance to transform council services once and for all.

“The credit crunch means there are hard times ahead. It’s vital we are ready and able to seize opportunities to rebuild the borough’s economy as they arise and be ready for the upturn.

“Tough measures are justified when needs must but I can’t, I won’t, look more than 500 people who have just lost their jobs in the eye and tell them the council has frittered away the proceeds on half a bag of chips all round.”

The current Liberal Democrat budget has proposed a council tax increase of 2.5 per cent. This would be an increase of 47p a week for band A properties which make up over half of Oldham’s homes.

Labour leader Councillor Jim McMahon said their alternative budget was deemed sound following examination by the cross-party group.

Speaking after the meeting, he said: “Some questioned if our budget was robust and if it could be delivered. After tonight’s meeting the public can rest assured that we have presented a fully-costed alternative which, if adopted, will see a council tax freeze for the second year running in Oldham, and that can only be good news for hardworking families.”

He said senior Labour members reassured the committee that investment would be maintained in frontline services, new secondary schools, improved street lighting and Metrolink infrastructure.

Members were also assured of significant increase in balances from £6 million to £12 million.

The committee said the following proposals were deliverable:

::Free swimming for all, subject to NHS Oldham agreeing to assist in the funding of the proposal from at least 2010 onwards.

::An increase of £250,000 in the budget for Safer Stronger Communities, with additional funding sought from partners.

::A nought per cent increase in council tax for 2009-10 was deliverable.

The recommendations were due before this morning’s Cabinet meeting.