Councillors lock horns over latest budget

OPPOSITION councillors have accused the new Labour administration at Hull Council of creating a “black hole” in the city’s finances after its emergency budget proposals revealed a projected deficit of £20m by 2015.

Labour announced an emergency budget this week that will be put to the full council next Thursday in its first major policy initiative since taking power from the Liberal Democrats at the local elections in May.

As well as reversing many Liberal Democrat plans, Labour plans to save about £8.7m by in redundancy settlements by maintaining 250 jobs.

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It would spend this on a range of new initiatives although the proposals also include a projected deficit of £7.7m next year. Labour insisted it could manage this, but the parties have now clashed after it was revealed this could rise to £20m in four years time.

Liberal Democrat group leader Abigail Bell said: “This budget would create a great deal of financial uncertainty for the council, were it to pass. Labour’s budget does not give any details for how they plan to deal with the £20m black hole in their budget. I am sure many people will be asking what future secret cuts they have in mind.”

Labour hit back and accused the Liberal Democrats of scaremongering.

Councillor Phil Webster, Labour’s portfolio holder for financial management, said: “We are not enacting all our budget proposals this year. What we have held back is a reduction in senior managers’ pay, that’s £3m, there’s also going to be about £3.5m in the hours reduction of staff and £3m in overtime – there’s £9.5m.

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“For us to do that we have to have a full year. That compounds year on year. This is easily manageable and it’s absolutely nonsense to say otherwise. We have had assurances from the section 151 officer (chief finance officer) that this is not a problem. They are trying to manipulate the figures for political purposes.”