Sykes says he’ll go over tax freeze
Reporter: Richard Hooton
Date published: 23 February 2009
THE Liberal Democrats will relinquish power and throw Oldham Council into chaos if the Tories force through a council tax freeze.
In a bombshell announcement, Councillor Howard Sykes said he would rather quit and become the shortest-serving leader in the authority’s history than preside over a budget he claims will continue bringing boom and bust to Oldham.
He says the Conservatives have indicated they will back Labour’s alternative budget of a zero rise, giving Labour Mayor Councillor Shoab Akhtar the decisive casting vote.
Furious Councillor Sykes says he would then walk out as leader and leave Labour and the Tories to decide on a new cabinet to control the council.
The astonishing threat makes Wednesday night’s budget meeting the most decisive-ever over the council’s future.
And it has region-wide repercussions as it could give Labour the majority on the Association of Greater Manchester Authorities.
Ruling Lib-Dems say their proposed 2.5 per cent rise, including police and fire precepts, will be the lowest council tax rise in Greater Manchester, while protecting services and building up reserves. The increase would see the charge for Band A properties increase by £24.63, to £1,009.39.
They argue Labour’s budget will deny them money to transform Oldham —including a £2 million package to combat the effects of the credit crunch; make the borough cleaner, greener and safer; improve education and tackle unemployment; and improve neighbourhood working.
Councillor Sykes said: “It means I have got no money to spend on what the citizens expect us to spend it on . . . if you think I’m sitting here as a leader after that you can think again.
“I will get up and walk out as leader. I won’t preside over a budget that is not mine. I won’t be judged on someone else’s spending priorities.
“We have put a budget together to try and get us back on the straight and narrow and put some money in for what the public want us to spend it on. If you take that money away I’m not going to stand there and say I can still fix it as I would be a liar.
“It’s like being politically neutered.”
He said Labour’s zero rise last year was a political stunt that left the council paying the price with a £20 million budget shortfall, plugged by the Lib-Dems with a raft of savings — including 500 job losses.
Labour leader Councillor Jim McMahon said: “To resign over a budget that’s 99 per cent the same as theirs is pathetic.
“A council tax freeze is the right thing to do but he’s taking his bat and ball home. You have to wonder if there’s something else behind it.
“Our constitution says we are not able to get into a coalition with the Tories ahead of a general election. We will do what’s in the interests of Oldham to give the council stability.”
He said Labour’s budget would bring Oldham back into line with other Greater Manchester councils charging much cheaper council tax.
He added: “Oldham has the money to do what it wants to do, it just needs to re-prioritise how it spends it. The Labour group is committed to doing what’s best for the people of Oldham.”
Tory leader Councillor Jack Hulme said: “We are not in a coalition with Labour. We will wait to see if there are any amendments put before council before making a decision.
“We take a dim view of the fact we are apparently being blackmailed and if we don’t go along with his budget he will resign.”
‘Polls prove I’m right’
COUNCILLOR Howard Sykes produced public polls to show Oldhamers back the Lib-Dem’s three-year strategy that he believes will put the council on a sound financial footing.
He claimed a budget simulator exercise available to residents, and a survey answered by 694 people, were evidence that he is doing what the public wants.
The survey showed 51 per cent agreed that council tax should increase by only 2.5 per cent, even if it meant service reductions were necessary.
Forty-five per cent of those questioned said keeping council tax increases as low as possible was more important than maintaining services.
Main priorities identified from the simulator were a 3.7 per cent spending increase to tackle crime and anti-social behaviour, followed by a 1.6 per cent increase on roads and gullies and a 1.4 per cent increase in street cleaning and fly tipping.
Lower priorities were reflected by people suggesting reducing spending on arts, music, festivals and culture by 5.5 per cent, marketing by 4.5 per cent and support for voluntary groups by 2.1 per cent.
The most frequent comments were that spending should be reduced on top management posts and communications.