Lib-Dem budget dubbed a ‘recipe for disaster’ by Labour

Reporter: Richard Hooton
Date published: 11 December 2009


LABOUR has ridiculed the Lib-Dem’s budget proposals saying they are a recipe for disaster and contain little detail.

But the ruling party on Oldham Council has hit back to say it’s a robust budget with a level of detail that’s never been drawn up at this stage of the year before.

Lib-Dem councillors passed their budget at a cabinet meeting on Wednesday, but Labour member Councillor Dave Hibbert abstained.

The Lib-Dems say they have to find £10 million to balance the budget and have so far identified £8.5 million in efficiency savings, increasing income and redesigning services.

They’ve warned that £45 million has to be saved in total over the next three years and have stuck to a pledge that council tax will rise by 2.5 per cent next year.

But Councillor Hibbert criticised a statement that no risk assessment had been carried out on the basis that “the risk would become apparent at the time of implementation”.

He said: “That is a recipe for disaster. How can you go ahead with policies that you don’t know will work; and budget reductions that have not even been checked out as being achievable?

“This paper tells us nothing. It is impossible to give this ridiculous document any real consideration.”

“The Liberal Democrat budget proposals have no theme, no detail and are a recipe for disaster; they are flying by the seats of their pants.”

He says the document consists of one line policy descriptions with proposed cutbacks of hundreds of thousands of pounds.

Councillor Peter Dean, Labour’s finance spokesman, added: “The Lib-Dem proposals could be creating massive problems for us all. No responsible councillor could give this budget their support.”

But Councillor Lynne Thompson, cabinet member for finance and resources, pointed out the Lib-Dems had drawn up opposition budgets in the past but last year Labour only tabled a series of amendments and had produced nothing so far this year.

She said the Lib-Dem’s have drawn up 81 lines of savings whereas a Labour budget four years ago had one line that was never achieved.

“The budget is 85 per cent done in December and has a level of detail it’s never had,” she said. “Labour has done the knee-jerk stuff and are on dodgy ground.

“We feel our budget is robust and where there’s work to be done we have been perfectly frank about it. There’s nothing in there we don’t think is achievable, but it’s how easy it is to deliver.”

She added that 90-day consultation has begun with trade unions over 91 posts identified for the axe.

The budget shows £2.3 million will be invested in priorities such as improving education and skills.

Spending includes the Bloom and Grow town centre improvement initiative (£200,000), alleygating (£150,000), aiming for a university town (£309,000), extended opening at Gallery Oldham (£128,000), district partnerships (£600,00) and housing grants (£46,000).

Key measures to get the borough ready for the economic recovery include getting rid of unnecessary properties and sharing back office services with other councils such as Rochdale.

The budget proposals now go before full council next Wednesday for the first slice of savings to be agreed and implemented.