Town Hall finances

The Town Council budget was set and a 4.9% increase was achieved. The November inflation rate is used on contracts and this was 4.8%. Yet inflation in January is already down to 3.1% The budget setting was a painful experience. The Tories had started at a 10% increase, we had got it down to 6.9% but to get to inflation could only mean cuts in services or reducing reserves.

The council tax increase was so high simply because the Town Council had agreed to part fund a new PCSO with the Police and that infamous land purchase to the rear of the Town Hall was going to hit with an extra £17000 in the budget. The Auditor was also demanding more cash in reserves. There was only one outcome services such as the Tourist Information Centre, Eden's Youth Club and reserves for a rainy day were cut by the Tories and opposed by our Lib Dem councillors.

Now these % increases seem high yet in another way the Town Council budget is a small proportion of the total bill so an increase of 3-4 pounds for each household over the year was likely or a 10-15pence per week for each houshold. It can sound rather different and satisfactory when worded like this.

Yet the Town Council needs to budget well and get under or near inflation.
The lesson here is that the Tory councillors have committed themselves to spending through the year and at the last minute realised the consequences and cut essential services which are worth paying for and are needed.

In the same week our Tory MP was saying that tourism was a possible way out of the recession, his own councillors reduce the hours of the Tourist Information Centre. Slightly ironic.

Poor financial planning.