Proposed by  Councillor Tom Harney

Seconded by Councillor Pat Williams

(1)  Council recognises that the economic problems of the country are resulting in grant reductions from the Government and that the underlying financial problems are the same for all parties, a fact tacitly accepted by senior figures in the Labour Party nationally who have said they will not reverse all cuts.

(2)  Council recognises that not all of Wirral’s problems result from the present economic problems of the country and a significant percentage of our problems are made in Wirral.

(3)  A report from the Director of Finance to Cabinet in December highlighted the problems which have been built up over a number of years, including the recording of uncollected debts as assets being carried out over as much as 14 years which has contributed to an inaccurate picture of our financial position.

(4)  It notes that the projected budget gap for 2013/2014, according to a report by the Director of Finance, is £39m, of which £17m (43%) is caused by reduced grants and £22m (57%) as a result of local financial governance issues.

(5)  Council notes with concern that, in addition to the Labour Group misrepresenting the cause of the budget problems as solely the responsibility of the Government whilst ignoring their own contribution, the Council has, on occasion, also not been completely factual as to the causes of the budget situation.

(6)  This Council resolves that it will ensure that comprehensive, complete and correct information is given by its officers to both the people of Wirral and used in negotiations with the Government.

(7)  Council resolves to continue to discuss our financial problems with the Government with the aim of finding a way through the impact of the problems this Council has inherited. It recognises that the failure over a number of years to deal with the real situation means that many difficult decisions will need to be made in a short period.

Amendment submitted in accordance with Standing Order 7(2)

Proposed by Councillor Phil Davies

Seconded by Councillor Ann McLachlan

Delete all and replace with the following:-

(1)  Council believes that it is unreasonable for the Liberal Democrats to try to avoid taking the blame for the draconian cuts in local government funding which they share responsibility for as a consequence of their coalition with the Tories nationally.

(2)  Council notes that most of the £39 million which the authority has to save in 2013/14 is due to direct cuts in government grants and the government’s failure to fund increases in demographic demand, with particular reference to services for children and young people and adult social care.

(3)  Council notes that the authority’s financial position has been made worse by a £17 million overspend left by the previous Tory-led administration and a sum of £4 million which the last administration wasted on a Council tax rebate which they put forward shortly before last May’s local elections.

(4)  In addition to the above, Council notes that there is some £38.4 million of exceptional items in 2013/14 which will need to be funded through measures such as capitalisation and use of reserves.

(5)  Council resolves to continue being open and transparent in reporting the financial position of the authority. It agrees to continue lobbying the government for a fair deal for Wirral and recognises the progress that has been made in putting the Council’s finances in order.

Following a debate and Councillor Tom Harney having replied, the amendment was put and carried (35:27) (One abstention).

The substantive motion was put and carried (35:27) (One abstention)

Resolved (35:27) (One abstention) –

(1)  Council believes that it is unreasonable for the Liberal Democrats to try to avoid taking the blame for the draconian cuts in local government funding which they share responsibility for as a consequence of their coalition with the Tories nationally.

(2)  Council notes that most of the £39 million which the authority has to save in 2013/14 is due to direct cuts in government grants and the government’s failure to fund increases in demographic demand, with particular reference to services for children and young people and adult social care.

(3)  Council notes that the authority’s financial position has been made worse by a £17 million overspend left by the previous Tory-led administration and a sum of £4 million which the last administration wasted on a Council tax rebate which they put forward shortly before last May’s local elections.

(4)  In addition to the above, Council notes that there is some £38.4 million of exceptional items in 2013/14 which will need to be funded through measures such as capitalisation and use of reserves.

(5)  Council resolves to continue being open and transparent in reporting the financial position of the authority. It agrees to continue lobbying the government for a fair deal for Wirral and recognises the progress that has been made in putting the Council’s finances in order.