Agenda item

MOTION:THE STATE OF THE COUNCIL'S FINANCES

Minutes:

Proposed by Councillor Steve Foulkes

Seconded by Councillor Phil Davies

 

This Council recognises that the previous administration left the Council’s finances in a healthy state and rejects any accusation that it built up unreasonable and unsustainable debts.

 

Amendment submitted in accordance with Standing Order 7(2):

 

Proposed by Councillor Jeff Green

Seconded by Councillor Lesley Rennie

 

Delete all after ‘This Council recognises’ and replace with:

 

that debts eventually have to be repaid and that the current level of Council debt is costing £11 million a year to service in interest. Such levels of debt make the Council vulnerable to fluctuations in market interest rates.

 

Council also notes that while the current Deputy Leader of the Labour Group has suggested that urgent action is required, as Wirral is ‘burning’, the current Leader of the Labour Group has stated that the Council finances are in a ‘healthy state’.

 

Amendment submitted in accordance with Standing Order 7(2):

 

Proposed by Councillor Simon Holbrook

Seconded by Councillor Stuart Kelly

 

Add to end of motion:

 

In particular Council notes that, over the 3 years of the previous Labour / Liberal Democrat administration, £37.5m was saved from the Council Budget and that the accounts for 2009-10 just closed indicate that the Council underspent its Budget by £315,000.

 

However, notwithstanding this success, Council acknowledges that following the former Chancellor Alistair Darling’s Budget of 2009; the Director of Finance has reported at various times the need for further savings of between £60m and £80m between 2011 and 2014, and that the Deputy Leader of the Council has consistently warned of the major challenges this poses.

 

Following the first Budget of the Coalition Government, Council now has the current Budget gap confirmed at the upper end of the previously reported range.

 

Council condemns the financial and regulatory mismanagement of the previous Labour Government, which in combination with the global financial crisis has resulted in the worst national debt crisis in living memory.

 

Council recognises that it is this failure which is the root cause of the public spending reductions which will now impact on local people and services.

 

Following a debate and Councillor Foulkes having replied, the Council divided as follows on the amendment proposed by Councillor Green:

 

For the amendment (27) - Councillors T Anderson, C Blakeley, E Boult, SL Clarke, W Clements, DM Elderton, GJ Ellis, JE Green, J Hale, K Hayes, P Hayes, AC Hodson, PSC Johnson, P Kearney, J Keeley, DT Knowles, I Lewis, D McCubbin, SR Mountney, C Povall, A Pritchard, Mrs LA Rennie, SL Rowlands, S Taylor, GCJ Watt, S Williams and Mrs K Wood.

 

Against the amendment (35) - Councillors RL Abbey, A Bridson, A Brighouse, JA Crabtree, G Davies, PL Davies, WJ Davies, D Dodd, S Foulkes, G Gardiner, PN Gilchrist, P Glasman, T Harney, SA Holbrook, M Johnston, AER Jones, SE Kelly, BM Kenny, A McArdle, ARC McLachlan, M McLaughlin, CM Meaden, GD Mitchell, RK Moon, SAM Niblock, PTC Reisdorf, DE Roberts, J Salter, PA Smith, WW Smith, S Whittingham, R Wilkins, I Williams, KJ Williams and Mrs PM Williams.

 

Abstentions (1) – Councillor AT Jennings.

 

The Council divided as follows on the amendment proposed by Councillor Holbrook:

 

For the amendment (14) - A Bridson, A Brighouse, G Gardiner, PN Gilchrist, T Harney, SA Holbrook, M Johnston, SE Kelly, GD Mitchell, RK Moon, SAM Niblock, PTC Reisdorf, R Wilkins and Mrs PM Williams.

 

Against the amendment (48) - Councillors RL Abbey, T Anderson, C Blakeley, E Boult, SL Clarke, W Clements, JA Crabtree, G Davies, PL Davies, WJ Davies, D Dodd, DM Elderton, GJ Ellis, S Foulkes, P Glasman, JE Green, J Hale, K Hayes, P Hayes, AC Hodson, PSC Johnson, AER Jones, P Kearney, J Keeley, BM Kenny, DT Knowles, I Lewis, A McArdle, D McCubbin, ARC McLachlan, M McLaughlin, CM Meaden, SR Mountney, C Povall, A Pritchard, Mrs LA Rennie, DE Roberts, SL Rowlands, J Salter, PA Smith, WW Smith, S Taylor, GCJ Watt, S Whittingham, I Williams, KJ Williams, S Williams and Mrs K Wood.

 

Abstentions (1) – Councillor AT Jennings.

 

The Council divided as follows on the motion:

 

For the motion (35) - Councillors RL Abbey, A Bridson, A Brighouse, JA Crabtree, G Davies, PL Davies, WJ Davies, D Dodd, S Foulkes, G Gardiner, PN Gilchrist, P Glasman, T Harney, SA Holbrook, M Johnston, AER Jones, SE Kelly, BM Kenny, A McArdle, ARC McLachlan, M McLaughlin, CM Meaden, GD Mitchell, RK Moon, SAM Niblock, PTC Reisdorf, DE Roberts, J Salter, PA Smith, WW Smith, S Whittingham, R Wilkins, I Williams, KJ Williams and Mrs PM Williams.

 

Against the motion (27) - Councillors T Anderson, C Blakeley, E Boult, SL Clarke, W Clements, DM Elderton, GJ Ellis, JE Green, J Hale, K Hayes, P Hayes, AC Hodson, PSC Johnson, P Kearney, J Keeley, DT Knowles, I Lewis, D McCubbin, SR Mountney, C Povall, A Pritchard, Mrs LA Rennie, SL Rowlands, S Taylor, GCJ Watt, S Williams and Mrs K Wood.

 

Abstentions (1) – Councillor AT Jennings.

 

Resolved (35:27:1) – This Council recognises that the previous administration left the Council’s finances in a healthy state and rejects any accusation that it built up unreasonable and unsustainable debts.