Labour ducking tough decisions on spending and jobs say critics

The authority will meet today to decide its spending plans for the next five years after Labour produced an emergency budget, its first major policy review since taking control from the Liberal Democrats in the local elections last month.

Central to Labour’s plans is the decision to halt 250 job cuts contained in the Lib Dems’ budget in March, which would save £8.7m in redundancy settlements.

The proposals would reverse more than £1.6m of Liberal Democrat cuts, maintaining spending on areas including day centres, museums, and the two council golf courses.

New spending plans include an extra £1m on adult day centre services, £500,000 on free and reduced price school meals – rising to £1.5m next year – £900,000 on prevention services for children, £900,000 on children’s early years projects and children’s centres, and £300,000 to develop more fostering placements.

The political pressure on Labour began to rise, however, over financial projections that would leave a £6m deficit in next year’s budget – and one of £20m by 2015.

Labour has said it is confident of bridging both deficits over time but the Lib Dems came out fighting yesterday with a series of amendments to Labour’s plans on the eve of the budget debate.

Although the Lib Dems will support Labour in its plans to spend £200,000 over the next two years on support for ex-service personnel, including creating a veterans’ co-ordinator post, the Lib Dems would reinstate the job cuts and spend extra on:

£1m for roads and pavements maintenance;

Creating a £1m “Green Port” skills and jobs fund;

Establishing a £1m innovation fund with the voluntary sector;

Creating a £1m fund to maintain vital services in extreme weather;

Providing an extra £10,000 for ward community initiatives.

Lib Dem group leader Abi Bell said: “Labour promised time and time again during the election that they would balance the books.

“If their budget goes through tomorrow they will have broken that promise by creating a £6m black hole in the council’s budget by February next year.

“That is a million pounds for every week they have been in office.

“Local people should also be concerned that the Labour budget fails to identify on what services the axe will fall to pay for the promises they’ve made.”

Lib Dem spokesman Coun Dave McCobb said Labour was storing trouble by failing to act decisively over jobs, and that the one-off redundancy payments planned by his party would be more cost-effective in the long-run.

He said: “In Hull Labour have a track record of ducking every tough decision when it comes to finance.”

But deputy council leader Daren Hale hit back, saying: “I’m absolutely staggered by the (Lib Dem) proposals given that the council is going to be inspected by Ofsted in 10 days.

“I am amazed they have not recognised the perilous position they left children’s services in.

“We are putting £2m back in to work with vulnerable children and families; I’m staggered that anyone would countenance doing anything different.

“I think we will be asked some probing questions (by Ofsted) as to the budget reductions they have made and I’m sure they will be seeking reassurance for the funding proposals for the future.”

He added: “I would hope the council will be united behind our budget, at least on the children’s elements. I would urge them to withdraw that amendment.”

The authority is also drawing up a Veterans’ Charter that is expected to include an acknowledgement of the needs of veterans and a formal commitment to helping them to access the specialist support and services which they may need.