Council goes for Broke

Lib Dems pass 'No limit' borrowing powers

At a meeting of the Full Council on Wednesday, 23rd July 2008, the Lib Dems passed a motion which included powers to borrow money without any limit being set by Members. The proposal is hidden away on page 23 of a 51 page document. Tucked away in paragraph 8.3, it says, ‘the Council has placed no limits on the amount of borrowing,’ and ‘it is not deemed necessary to set an upper limit to the use of increased borrowing’.

The Conservative opposition accuses the Liberal Democrat administration of recklessness in its financial approach. Conservative Finance Spokesman, Harvey Siggs said, ‘They have already doubled the Council tax. They have received a record hand-out from government this year. And they are already borrowing millions of pounds for their extravagant schemes. This is like a second mortgage on every hard-working family in Somerset. It cannot go on.’

Conservative Group Leader, Ken Maddock, said, ‘Times are tough enough at the moment, what with the rising cost of food, electricity and petrol. We are part of the real world. We cannot just go on borrowing for ever. This looks like Somerset’s very own credit crunch - and it is entirely home-made. There has to be a better way than this. It makes no sense to try to borrow your way out of trouble. The Conservatives would cap borrowing now.’