A GOVERNMENT minister has warned BCP Council’s leader over potentially exploring more commercial opportunities to balance the budget for the next financial year.
Lee Rowley MP, minister for local government, met with Cllr Drew Mellor, leader of the local authority, 12 days ago.
During this meeting, Cllr Mellor is said to have “briefly talked through” budget proposals for 2023/24.
Mr Rowley wrote to Cllr Mellor on Wednesday last week following their meeting to set out the position of the Department for Levelling Up, Housing and Communities.
This letter was published as part of the council’s budget papers, which are due to be discussed at several local authority meetings in February.
As previously reported, BCP Council’s plans currently include £35.1million of savings, with a five per cent council tax increase.
The Conservative council leadership have said they will be working to try to limit the increase to three per cent. However, no details on how this would be achieved have been published.
Mr Rowley’s letter said: “As we discussed it is the council’s responsibility to agree a balanced budget and to set its council tax within the flexibility that government has provided.
“As is the case for any council, any agreed budget should take account of the council’s long-term sustainability and ensure the council is planning for a secure future.
“You highlighted that, as part of its budget plans, the council is considering further commercial opportunities. Clearly when approaching any commercial scheme that carries risk, such risks must be balanced against the best interests of the council and local residents.
“It is for you to ensure that any budget proposal is fully compliant with statutory guidance and that you proceed with a suitable degree of caution.”
Mention of commercial opportunities was made in the council budget paper in relation to the cabinet approval of a recommendation in September to explore options across the council to deliver revenue through further commercialisation.
BCP Council’s plan to sell off thousands of beach huts to a company it would own to fund transformation in 2022/23 were torpedoed by the government last summer.
This left a hole in the programme’s budget and the council applied to government for a capitalisation direction – exceptional financial support – to borrow £20m.
Since being given a ‘minded to’ letter from the department, the council has progressed plans to sell assets in favour of the loan, which included a series of requirements.
One condition was that the council’s budget for 2023/24 must be fully within the spirit and intent of all local government guidance.
Mr Rowley’s letter said: “It is my expectation that BCP will take appropriate decisions fully in line with this condition."
He said the external assurance review of the council’s governance arrangements, which was also a condition of the ‘minded to’ position, will be starting “shortly”.
The minister said the findings of the review will be looked at carefully before deciding any final support for the local authority.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel