Council 'needs to do more to generate income'

Shadow finance member criticises council for 'not being innovative enough'

WEST Berkshire Council is not doing enough to look at ways of generating long-term income to protect itself against future cuts.

That was the warning from the council’s opposition spokesman for finance, Lee Dillon (Lib Dem, Thatcham North) this week.

Mr Dillon wants to see the council borrowing money in a more pro-active way – and using it to invest in something that will provide a continuous income stream going forward.

He believes that the council would have been in a far better position to deal with the massive cuts imposed on them by central government this year had it done so earlier.

Speaking to the Newbury Weekly News this week, Mr Dillon said: “This budget has shocked us all, but the Tories at West Berkshire Council are simply lying down and saying there are no alternatives.

“Rather than settling for one-off capital receipts, the council should look at more innovative ways of building up finances long term.

“For example, Kent County Council has set up its own property company and are making money from that.

“Eastleigh Borough Council have proactively invested £35m in a local cricket club and as a result are in a good financial position and have managed not to increase council tax for the past 13 years.

“Portsmouth Council bought a warehouse in Gloucester and are making money on that. This is happening up and down the country but we don’t seem to be doing it here.

Dillon also criticised the council for making the “political decision” to spend reserves and cut services rather than increasing council tax before the election

He added: “If you keep spending and don’t put council tax up, eventually the money is going to run out. They should have been more prepared.

“George Osborne was not quiet about his plans to cut more public funding.

“Instead of giving land away for free, like Market Street, we should have insisted on retaining an interest in private rented stock.”

Mr Dillon put forward a formal proposal to full council on March 1, to look at ways in which it could generate money going forward, which all of the Tories voted in favour of.

Council leader Roger Croft (Con, Thatcham South and Crookham) said it had been left with ‘very little’ in the way of assets after Berkshire County Council dissolved in 1998, but agreed to look at more ways it can generate income.

Mr Dillon added: “They could buy assets and build up their stock.

“West Berkshire Council could buy a building in The Broadway and rent it out to charities at a reduced rate.

“That way the charities won’t have to pay as much rent and the council will be securing long-term investment for itself.

“This is not about politics per se but about a Conservative administration that is not innovative enough in its thinking.”