COUNCIL'S £110 MILLION DEBT (04/12/02)

Somerset County Council Executive Board (4th December 2002) received a copy of the Treasury Management Report. Despite some worrying figures showing that the County Council is borrowing far more than is prudent, the Liberal Democrat’s spin department set to work to issue an outright lie to the Somerset residents. This department is, incidentally, paid for out of Somerset’s council tax.

Councillor Jill Shortland, Liberal democrat portfolio holder for Finance told the meeting that the outcome meant money in the bank. Her press release announced a ‘sound and profitable picture’. Conservatives on the County Council have spoken out against these fudged figures.

Conservative Group leader, John Smeaton, commented, ‘15 years ago, Somerset County Council under a Conservative Administration had £40million sitting in the bank. The Liberal Democrats spent that in four years. The Conservatives’ long-term borrowings were only £15 million. Now, after 10 years of Lib Dem financial incompetence we have virtually no reserves.What is more, over just the last year, Council’s long-term borrowing has increased by 28% from £85 million to £110 million. This is equivalent to an extra 5 percent on the Council Tax just to cover the interest on it.’

Conservative Deputy leader, Colin Hill, was also present at the Executive Board meeting. He said, ‘the financial staff at County Hall have done a good job with the money they have. The Treasury Report made this clear. However, increasing borrowing does not amount to profit.The figures do not add up. An extra £25 million has been borrowed. Perhaps the Liberal Democrats could explain how this equates to what they call “£1.2 million of savings”.’