Bournemouth freezing council tax by releasing £23m of reserves

Bournemouth freezing council tax by releasing £23m of reserves Bournemouth freezing council tax by releasing £23m of reserves

BOURNEMOUTH council is dipping into its £100m stockpile of reserves to try and boost the local economy and ease the pressure on squeezed residents.

Despite having its government funding slashed, Bournemouth’s council leader has insisted there will be no cuts to frontline services or widespread redundancies.

Instead, the council plans to release more than £23million it has been holding in reserve to safeguard services and invest in a variety of schemes.

It is also planning on cutting council tax by 0.7 per cent to ensure residents will not have to pay any extra this year.

Cllr John Beesley, leader of the council, said: “We’ve been preparing our budget strategy since 2007. Part of that has been building up our reserves for when things got very tight.

“We started these preparations very early and it’s put us in a position where we can continue to deliver services even though we’ve got a lot less government money.”

An additional £6m is being ploughed into adult and children’s social services, which now accounts for some 60 per cent of the council’s budget.

And £17.5m of the earmarked reserves, along with £5.8m from unearmarked reserves, are being released or reallocated. This follows warnings from the government against local authorities holding high reserves.

The external auditor has indicated he will be checking Bournemouth’s reserves are sufficient but not excessive.

£15million of this money will be used to set up a community financing initiative, which will see the council provide mortgages to first-time buyers and loans to small and medium sized businesses.

“I think we can use these reserves far more effectively to help stimulate the local economy,” said Cllr Beesley.

“Likewise, we want to help first-time buyers and keep these people in Bourne-mouth.”

He pointed out that helping local businesses and first-time buyers would have knock-on benefits for other trades too.

The council’s road rescue fund will get a further £500,000, £1m will go towards capital projects and there is a further £437,000 for the recession fund.

The council also intends to drive forward the Town Centre Master Vision, buy private sector housing that is in disrepair and press ahead with plans to regenerate West Howe and Boscombe.

It will also work with Coastal Credit Union to promote current account banking facilities for vulnerable residents who cannot access facilities provided by high street banks.

 

Comments(37)

Dr Strangelove says...
8:51am Mon 18 Feb 13

Too much money taken out of the economy with high rents and high house prices. No one has any disposable income and now we know the gov are going to let inflation rip say goodbye to the economy.

BIGTONE says...
9:03am Mon 18 Feb 13

Now you know why Dorset in general has the worst Government funding when Bournemouth has all those millions in reserve. I can only assume the other local authorities have a substantial pot of spare cash. They should have with the income they get and not spending out on the right things.

speedy231278 says...
9:03am Mon 18 Feb 13

If the council has £100M stuffed under the mattress, how about it uses some of that money to sort out all the potholes in the roads? Or actually pay to grit the roads properly? No, they'd rather stuff it in the bank and spend the interest on themselves....

skydriver says...
9:07am Mon 18 Feb 13

Now that's what happens to car parking charges, and excess parking charges.

Tom 'Boscombe' Jones says...
9:09am Mon 18 Feb 13

The council have no idea how to regenerate Boscombe or west how's, if you want to be sure of this fact ask any council worker involved or cabinet member what the plans are, then sit back and soak up the flannel.

jobsworthwatch says...
9:13am Mon 18 Feb 13

What are they doing with £100,000,000 of our money stuffed in their mattress?

No doubt the main reason for releasing £23m is to maintain the head count at jobsworth towers.

Hessenford says...
9:25am Mon 18 Feb 13

Do these reserves mean that we have been lied to since council tax was introduced when they say our payments have to go up every year because of government cuts when in reality they have been hiding our money away in secret bank accounts, some of todays problems are caused by the ordinary man/woman in the street not having enough money to spend, well now we know why, thieving pigs, wouldn't we all like some extra money to put in reserve every year.

earthwise says...
9:50am Mon 18 Feb 13

I bet a sizeable chunk of that money will in reality come from cuts to Council Tax benefit.......

You can't trust a Tory, nor a libDem, nor Labour, and not even the Greens nor any other political party......
And in any case the whole lot has been foreclosed.....
NOW Ŧʀєє x ツ ツ

Lord Spring says...
10:08am Mon 18 Feb 13

Do we have to keep seeing Mr Smarmy's fhizog.

l'anglais says...
10:17am Mon 18 Feb 13

So they have stashed away £23M, while high earners from the south east have being paying income tax and vat to subsidise BCC.

MikeFrench says...
10:49am Mon 18 Feb 13

"It is also planning on cutting council tax by 0.7 per cent to ensure residents will not have to pay any extra this year. "


So what about those of working age who are unable to work?
Are they still expected to pay at least 20% of their council tax bill out of their benefits??

BmthNewshound says...
10:50am Mon 18 Feb 13

Where does the £23m come from ? If you add up the value of all the initiatives in the article it comes to a total of £46.2m. Perhaps its the way the Echo has reported if not to blow nearly 50% of the reserves in one swoop is highly irresponsible.
.
Beesley is clearly a fan of the Gordon Brown school of economics. Sell off the Borough's assets, spend the reserves and leave the resulting mess for someone else to deal with.
.
Within a couple of years the reserves will be gone, the land assets will have been sold off, and the Council tax payers of Bournemouth will face hefty Council Tax rises.
.
Simply raiding the Council reserves is not responsible budgeting. As most people know you have to live within your means and it shouldn’t be any different for the Council.

Branksome Boy says...
10:59am Mon 18 Feb 13

I just wish the tight fisted lot at Poole Council would do the same! Rather than cheat the voters out of a referendum by upping our council tax by 1.95% - come on Cameron and Pickles have a quiet word in Poole's ear otherwise you will be out at the next election!

Dr Strangelove says...
11:20am Mon 18 Feb 13

Branksome Boy wrote:
I just wish the tight fisted lot at Poole Council would do the same! Rather than cheat the voters out of a referendum by upping our council tax by 1.95% - come on Cameron and Pickles have a quiet word in Poole's ear otherwise you will be out at the next election!
I think their out at the next election anyway and getting local tory councils to bribe the electorate is so 1980ies. Rising prices through inflation is the current policy pity no ones income is rising to keep pace.

Hessenford says...
11:35am Mon 18 Feb 13

BmthNewshound wrote:
Where does the £23m come from ? If you add up the value of all the initiatives in the article it comes to a total of £46.2m. Perhaps its the way the Echo has reported if not to blow nearly 50% of the reserves in one swoop is highly irresponsible.
.
Beesley is clearly a fan of the Gordon Brown school of economics. Sell off the Borough's assets, spend the reserves and leave the resulting mess for someone else to deal with.
.
Within a couple of years the reserves will be gone, the land assets will have been sold off, and the Council tax payers of Bournemouth will face hefty Council Tax rises.
.
Simply raiding the Council reserves is not responsible budgeting. As most people know you have to live within your means and it shouldn’t be any different for the Council.
To me the reserves are too high and have been gained over the years by high council tax bills and not through savings, you are right when you say you have to live within your means but that doesn't apply to councils it seems, hard working people cannot go to their bosses and demand a wage rise so they can build up a reserve of cash but that's what councils have been doing for years.

HRH of Boscombe says...
11:58am Mon 18 Feb 13

Hessenford wrote:
Do these reserves mean that we have been lied to since council tax was introduced when they say our payments have to go up every year because of government cuts when in reality they have been hiding our money away in secret bank accounts, some of todays problems are caused by the ordinary man/woman in the street not having enough money to spend, well now we know why, thieving pigs, wouldn't we all like some extra money to put in reserve every year.
It does seem that way. Worse when you think they have already made public cuts to vulnerable people services.

Jacobsmith95 says...
12:33pm Mon 18 Feb 13

The money is there to spend you monkeys! What are you doing with your lives!

muscliffman says...
1:27pm Mon 18 Feb 13

Tom 'Boscombe' Jones wrote:
The council have no idea how to regenerate Boscombe or west how's, if you want to be sure of this fact ask any council worker involved or cabinet member what the plans are, then sit back and soak up the flannel.
That is unfair, I am sure they have just as good an idea about how to sort out Bosombe as we nearly all have.

But the influential few, pulling the strings both within and without the Council for their own purposes, most certainly don't want that to ever happen!

speedy231278 says...
1:48pm Mon 18 Feb 13

There is a way to sort out Boscombe, but right now the correct equipment to do so is busy dealing with the IMAX.

BourneRed says...
2:16pm Mon 18 Feb 13

Well I appreciate the fact that my council tax will not being going up while, the police budget will be increasing and we won't lose any local services in the process. Personally I thought that was all good news, but surprisingly reading the Echo comments apparently not.

justsayithowitis says...
2:18pm Mon 18 Feb 13

MikeFrench wrote:
"It is also planning on cutting council tax by 0.7 per cent to ensure residents will not have to pay any extra this year. "


So what about those of working age who are unable to work?
Are they still expected to pay at least 20% of their council tax bill out of their benefits??
I hope so. Unemployed people I know have much more disposable income than I do and I work full time

HRH of Boscombe says...
2:48pm Mon 18 Feb 13

muscliffman wrote:
Tom 'Boscombe' Jones wrote: The council have no idea how to regenerate Boscombe or west how's, if you want to be sure of this fact ask any council worker involved or cabinet member what the plans are, then sit back and soak up the flannel.
That is unfair, I am sure they have just as good an idea about how to sort out Bosombe as we nearly all have. But the influential few, pulling the strings both within and without the Council for their own purposes, most certainly don't want that to ever happen!
So the 'council' are the collective. Tom 'Boscombe' Jones statement is then very fair.

MikeFrench says...
3:29pm Mon 18 Feb 13

justsayithowitis wrote:
MikeFrench wrote:
"It is also planning on cutting council tax by 0.7 per cent to ensure residents will not have to pay any extra this year. "


So what about those of working age who are unable to work?
Are they still expected to pay at least 20% of their council tax bill out of their benefits??
I hope so. Unemployed people I know have much more disposable income than I do and I work full time
I do understand & sympathise - am just about to get back into work after a very long injury, there are people on benefits that are legally abusing the system, I'm not one.

O'Reilly says...
4:03pm Mon 18 Feb 13

Wait 'till BBC cotton on to what Camden and Westminster Councils are doing with some of their tenants. A Policy called 'Transmigration' - echoes of our Colonial past, but in reverse. Tenants will be shipped off to Northern Cities to make room for the 'new' arrivals circa 2014.....

oneshortleg says...
4:46pm Mon 18 Feb 13

Makes the money spent on the Imax and surf reef fiascos seem like a drop in the ocean if you pardon the pun!

bcf203 says...
4:57pm Mon 18 Feb 13

The council tax is actually being cut by 0.7% and the tory council should be congratulated on this achievement.

The only way to regenerate West Howe and Boscombe is to try and get more people back to work rather than relying on benefits. This is clearly very difficult but begins with making work pay and gradually reducing the benefits available and having to pay a small proportion of council tax.

verityvita says...
5:51pm Mon 18 Feb 13

O'Reilly wrote:
Wait 'till BBC cotton on to what Camden and Westminster Councils are doing with some of their tenants. A Policy called 'Transmigration' - echoes of our Colonial past, but in reverse. Tenants will be shipped off to Northern Cities to make room for the 'new' arrivals circa 2014.....
What like this?

''A Tory MP today criticised London councils for sending “undesirables” to live in his seaside town.
Tobias Ellwood, Conservative MP for Bournemouth East, said that landlords were being approached by councils “outsourcing their (housing) waiting lists to Bournemouth”.
Mr Ellwood, who raised the issue in Parliament this week, said: “We had a number of incidents in the summer. It was found that three quarters of arrests made by police are of people from outside Bournemouth.
“A number of them are here because they have been outsourced by London councils. Unfortunately, come with all sorts of anti-social challenges.
“The councils are obviously keen to hand off all their undesirable characters.”
It is believed that several London councils have sent hundreds of housing benefit claimants to Bournemouth because spending cuts have led to a shortage of affordable properties.''

brentmeister says...
6:09pm Mon 18 Feb 13

MikeFrench wrote:
justsayithowitis wrote:
MikeFrench wrote:
"It is also planning on cutting council tax by 0.7 per cent to ensure residents will not have to pay any extra this year. "


So what about those of working age who are unable to work?
Are they still expected to pay at least 20% of their council tax bill out of their benefits??
I hope so. Unemployed people I know have much more disposable income than I do and I work full time
I do understand & sympathise - am just about to get back into work after a very long injury, there are people on benefits that are legally abusing the system, I'm not one.
So what's the answer to the original question? 20% ? 10% ? 0%?

I understand the unemployed receive between £50 - £70 per week. How can they earn more than someone working full time and claiming working tax credits? How are they 'legally' abusing the system?.

The only people who 'abuse' the system are single mothers, immigrants, asylum seekers and people with large families. Single people claiming the dole cannot be better off than those working full time. That's a fact, not Tory propaganda.

brentmeister says...
6:25pm Mon 18 Feb 13

bcf203 wrote:
The council tax is actually being cut by 0.7% and the tory council should be congratulated on this achievement.

The only way to regenerate West Howe and Boscombe is to try and get more people back to work rather than relying on benefits. This is clearly very difficult but begins with making work pay and gradually reducing the benefits available and having to pay a small proportion of council tax.
Making work pay means supplying affordable rent and paying a decent living wage. In Bournemouth that means a minimum salary of £15k. Anything less than that and it isn't worth working. As long as Britain has open borders with Eastern Europe, wages will remain low as the business community exploit cheap migrant labour. People who want open borders and a low wage economy can't then complain about a rising welfare bill and rising rent. .

Alumchiner says...
8:56pm Mon 18 Feb 13

bcf203 wrote:
The council tax is actually being cut by 0.7% and the tory council should be congratulated on this achievement.

The only way to regenerate West Howe and Boscombe is to try and get more people back to work rather than relying on benefits. This is clearly very difficult but begins with making work pay and gradually reducing the benefits available and having to pay a small proportion of council tax.
That's been going on for at least 5 years or so because of Bournemouth's addiction centres and care in the community hostels. I remember a West London council housing it prolific offenders here as it suited everyone including them. They did it to get them out of the cycle of crime and drugs but within days they had formed new contacts etc .Saying that at least 4-5 that I knew went to Littlehampton, some to Brighton so all the towns suffer the worst of them. The only good thing that came out of it was that most of them ended up back inside or dead because of overdosing etc so they didn't make too much impact on society. I dont think we have seen anything yet until the 'new european arrivals' start coming in. From my experience they are 10 times as bad as our UK low life.........

O'Reilly says...
10:35pm Mon 18 Feb 13

verityvita wrote:
O'Reilly wrote:
Wait 'till BBC cotton on to what Camden and Westminster Councils are doing with some of their tenants. A Policy called 'Transmigration' - echoes of our Colonial past, but in reverse. Tenants will be shipped off to Northern Cities to make room for the 'new' arrivals circa 2014.....
What like this?

''A Tory MP today criticised London councils for sending “undesirables” to live in his seaside town.
Tobias Ellwood, Conservative MP for Bournemouth East, said that landlords were being approached by councils “outsourcing their (housing) waiting lists to Bournemouth”.
Mr Ellwood, who raised the issue in Parliament this week, said: “We had a number of incidents in the summer. It was found that three quarters of arrests made by police are of people from outside Bournemouth.
“A number of them are here because they have been outsourced by London councils. Unfortunately, come with all sorts of anti-social challenges.
“The councils are obviously keen to hand off all their undesirable characters.”
It is believed that several London councils have sent hundreds of housing benefit claimants to Bournemouth because spending cuts have led to a shortage of affordable properties.''
Well I suppose sunny Bournemouth has the edge on Ooop North.....

HRH of Boscombe says...
10:41pm Mon 18 Feb 13

O'Reilly wrote:
Wait 'till BBC cotton on to what Camden and Westminster Councils are doing with some of their tenants. A Policy called 'Transmigration' - echoes of our Colonial past, but in reverse. Tenants will be shipped off to Northern Cities to make room for the 'new' arrivals circa 2014.....
Scum that think they can live in the centre of the capital for free should be shipped off and will!.

HRH of Boscombe says...
10:54pm Mon 18 Feb 13

bcf203 wrote:
The council tax is actually being cut by 0.7% and the tory council should be congratulated on this achievement.

The only way to regenerate West Howe and Boscombe is to try and get more people back to work rather than relying on benefits. This is clearly very difficult but begins with making work pay and gradually reducing the benefits available and having to pay a small proportion of council tax.
Have you any conception of the economy?
.
If everyone worked it would be less money for everyone else who did for a start.
.
The reality is there are not enough local jobs/money to support the local population. That's why some of us have to rely on chuckle brother's railways.

EGHH says...
6:11am Tue 19 Feb 13

What about Poole Council. Are they cutting their CT or are they going to sting the residents to pay for the repairs to the ruddy awful Twin Sails Bridge repairs?

Branksome Boy says...
9:32am Tue 19 Feb 13

As I previously said Poole Council are putting council tax up by 1.95%! (Just below the 2% marker that would force them to have a referendum!) My husband hasn't had a wage rise in 5 years and mine has only gone up by 1% in the last 2 years so where would they like us to find the extra money from! Oh I forgot they are tories and don't give a ****!

Tom 'Boscombe' Jones says...
11:00am Tue 19 Feb 13

muscliffman wrote:
Tom 'Boscombe' Jones wrote:
The council have no idea how to regenerate Boscombe or west how's, if you want to be sure of this fact ask any council worker involved or cabinet member what the plans are, then sit back and soak up the flannel.
That is unfair, I am sure they have just as good an idea about how to sort out Bosombe as we nearly all have.

But the influential few, pulling the strings both within and without the Council for their own purposes, most certainly don't want that to ever happen!
Yes very true.

Ebb Tide says...
6:15pm Tue 19 Feb 13

jobsworthwatch wrote:
What are they doing with £100,000,000 of our money stuffed in their mattress?

No doubt the main reason for releasing £23m is to maintain the head count at jobsworth towers.
Overloading the local population to accumulate such reserves needs an explanation !!!

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