Council Budget Panic - 26/11/07

Plaid Cllr’s have attacked the Labour/ Independent administrations handling of County Council cash. Council officers say that this years Council departments are likely to overspend by nearly £1.9m.

To bail themselves out, departmental reserves will be raided. Also, central reserves are likely to drop to 2.92% by 31st of March. This is below the ‘prudent level’ agreed by Council and accepted by external audit.

Now the Council is discussing next years tax hike (7.12%) and despite getting an above inflation settlement from the Government* is warning of cuts and big tax hikes.
Commenting on the situation, Plaid’s Neil Baker said:

"Leaders in County hall are out to blame anyone but themselves for the big tax hike likely next year. They are putting up a smokescreen to hide the fact that they have been given cash over the rate of inflation but will still want to hammer the taxpayers."

"Only last week this Council found millions to fund the new stadium in Llanelli. When challenged if this would affect frontline services we were told NO. Now we hear bleating from County Hall about cuts in frontline services when there is plenty of cash for spin and pet projects."

"It's time the Labour/Independent Party leadership stopped their crocodile tears and started  delivering."

* Gvt inflation Consumer Price index in October was 2.1% (ONS)
- Provisional settlement for  Carmarthenshire 2.8% (Welsh Assembly Government figures)
- Predicted tax hike Carms  7.12 % (Document Executive board of Council 26 Nov
- Budget Overspends- Executive Board revenue and Capital  reports, Executive Board 26 Nov.