A FINANCIAL lifeline thrown to Bradford Council by Government will still “weigh heavy on the district for many years to come” – according to opposition councillors.
Bradford Council will receive “exceptional financial support” from the government on Thursday; this means the council will be able to borrow money and sell properties to help balance its budget.
The authority had threatened to declare Bradford Council practically bankrupt last year if such help was not provided.
On Thursday, 19 Councils received this kind of funding, including Bradford.
With the support, the Council may balance its budget by using a combination of asset sales and borrowing.
Support of £120 million has been approved for the upcoming fiscal year and £80 million for the present one.
Council leaders have stated that even with the backing, they will still need to move forward with a number of cuts, facility closures, price increases, and a 4.99% increase in council tax.
“Whilst my Conservative Group colleagues and I are clear in our minds that the Council’s financial woes are of the Labour Executive’s making,” said Councillor Mike Pollard, the Conservative Group’s spokesman for finance and projects, in response to the news that the Council would receive support. “We are pleased that the Secretary of State has decided to throw them a lifeline, due to the effects upon the residents of Bradford district and the services that they need, if he had not done so.”
“To be clear, though, the press headlines from yesterday claiming that Bradford had “avoided insolvency” are playing around with terminology.
“When Councils use Section 114 Notice to request assistance, the Government typically takes additional steps, but the severe underlying issues and burdensome terms associated with the substantial loan facilities reques
Councillor Brendan Stubbs, Leader of the Liberal Democrats in Bradford, said: “The Government response to the Labour-run Councils request for help places Bradford Council very high on the list of financial failure in Local Government and the need for £220 million to balance this years and next year’s accounts will weigh heavy on our district for many years to come.
ted in these cases are the same whether Section 114 Notice is used or Bradford is offered an alternative form of exceptional financial support.”
“The Council, the Conservative Government, and the Labour Council will all need to borrow and repay this £220 million after years of failure. To make up for their errors, they have decided to obtain a credit card, which the local taxpayers would have to pay back over the course of 20 years.
“The Council’s strategy to put things under control calls for five years, of which the first is covered by the Emergency Financial Support.
“Before things are fixed, it is highly likely that Bradford will return to Government with the beggarly pot.”
Bradford Greens leader Councillor Matt Edwards stated: “Although it is a relief that we will not be filing a 114 notice, this is still a very difficult situation.”circumstances regarding Bradford Council. More significantly, not only in this budget but also in subsequent budgets, households will continue to face significant service reductions and an increase in council tax.
“Although there are undoubtedly shortcomings in the current Labour government that have brought us to this point, the overwhelming number of Labour, Conservative, and Liberal-Democrat councils across the nation that have requested assistance this year demonstrates that the true problem here is the Conservative government’s ongoing underfunding of local services.
“Given the unwillingness of Keir Starmer to commit to undo this, anyone expecting a Labour government to put this right is going to be very disappointed.”
Jonathan Carr-West, Chief Executive of the Local Government Information Unit, made refereIt is a last-minute reprieve that prevents an abrupt financial disaster for them. That makes the news welcome. However, this should not be interpreted as an act of kindness from the government.
All they are doing is permitting councils to borrow money and sell their own property. The announcement made today should not be interpreted as a long-term, viable fix for local government funding. We can only go so far with increasing debt and selling off the family jewels.nce to the decision to give 19 Councils financial support with exclusions, saying, “We know how desperate these councils were to receive this exceptional support.”
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