‘£3.2m reserves is £1m too much’ for Hyndburn Council

5:00pm Tuesday 5th March 2013 in News Photograph of the Author By Emma Cruces, Reporter

A COUNCIL has come under fire for ‘banking’ £1million instead of spending it on services or cutting council tax.

However the leader of Hyndburn Council said it would need ‘robust reserves’ if it were to pull off an ambitious bid for local business rates to be slashed.

Leader Miles Parkinson was criticised by the opposition for ‘overcharging homes’ in the decision to keep reserves at £3.2million instead of the government’s recommended £2million in fallback cash.

However Coun Parkinson said the authority was hoping to persuade the government to slash ‘crippling levels’ of tax on Hyndburn businesses. If successful, the bid would affect 40 per cent of the council’s funding which comes directly from business rates.

Coun Parkinson said: “We are very keen for the government to revalue business rates. The last time this was done the economy was on the up and rates were charged accordingly. Since then things have gone quite downhill.

“What we are hearing from businesses is that they are finding the amount asked of them to be completely crippling.

“But in order for them to pay less we have to be prepared. If the government listen to us and do as we ask, it affects 40 per cent of our grant from government.

“That will see us receive much less in future years. We are willing to do that, but we would need to plan ahead and have robust reserves to stay afloat.”

Opposition leader Peter Britcliffe said not using the cash this year was a ‘lost opportunity’. He said: “That money could see a very significant cut on council tax for homes who desperately need it. To me, it’s not a reserve but the result of overcharging homes in Hyndburn when there was no need to do so.

“The council could have also used it to regenerate the economy. Hoarding it away for a rainy day is futile.

“It is raining today, and not just raining it is pouring.”

A spokesman for the Department for Communities and Local Government, which is responsible for the collection of business rates, said: “We have no plans to revalue business rates as it is done every five years and is not due for some time.

“However any proposal sent to us by a council will be looked at and considered thoroughly.”

Comments (7)

5:24pm Tue 5 Mar 13

phil kernot says...

I've known councils and blackburn is one of em to rip up perfect kiirbstones , and replace em with new ones just so thay can spend whats in the bank before the new tax year starts , that's madness and people should be sacked for it
I've known councils and blackburn is one of em to rip up perfect kiirbstones , and replace em with new ones just so thay can spend whats in the bank before the new tax year starts , that's madness and people should be sacked for it phil kernot

6:17pm Tue 5 Mar 13

mavrick says...

It seems some forward planning from the leader of the council may pay dividends. Never mind Peter you got your usual two lines. It seems the council are trying everything in their power to rejuvenate the borough. I hope they continue to defy this penny pinching coalition and score successes,
It seems some forward planning from the leader of the council may pay dividends. Never mind Peter you got your usual two lines. It seems the council are trying everything in their power to rejuvenate the borough. I hope they continue to defy this penny pinching coalition and score successes, mavrick

10:29pm Tue 5 Mar 13

Cllr Ken Moss says...

This is coming from the same Peter Britcliffe who wasted nearly £600,000 on a website that lasted about six months, £300,000 on a toilet next to a public toilet that was already there and blew countless thousands on calendars and other bits of literature so that a picture of his face could be pushed through the door of every home in Hyndburn.

This is also the man who blames Labour for spending all the money and causing the recession and yet is now complaining because Labour isn't spending all the money and is being cautious.

You had over ten years in control and when we took over in 2011 we inherited around £12.9m in debts from the previous Conservative administration.

Would you mind awfully if we try and 'conserve' a bit of what we actually have left and start looking after the whole borough instead of just bits of it?
This is coming from the same Peter Britcliffe who wasted nearly £600,000 on a website that lasted about six months, £300,000 on a toilet next to a public toilet that was already there and blew countless thousands on calendars and other bits of literature so that a picture of his face could be pushed through the door of every home in Hyndburn. This is also the man who blames Labour for spending all the money and causing the recession and yet is now complaining because Labour isn't spending all the money and is being cautious. You had over ten years in control and when we took over in 2011 we inherited around £12.9m in debts from the previous Conservative administration. Would you mind awfully if we try and 'conserve' a bit of what we actually have left and start looking after the whole borough instead of just bits of it? Cllr Ken Moss

9:46am Wed 6 Mar 13

Jo_Tom says...

Interesting comment from Peter Britcliffe " It is raining today. Not just raining but pouring". It's pouring Peter because of the hefty budget cuts the coalition have forced on the Labour areas.

The leafy south west who all vote Tory have faced no such cuts and are actually better off thanks to the New Homes Bonus. It's a heatwave down south if we're using weather as a comparitor.

That doesn't mean I agree with the ridiculous reserves that Hyndburn are sitting on. £1.2m above what the Government recommend is ludicrous especially when the town centre is falling apart. No wonder Hyndburn are against an East Lancs unitary with all the money in the bank.
Interesting comment from Peter Britcliffe " It is raining today. Not just raining but pouring". It's pouring Peter because of the hefty budget cuts the coalition have forced on the Labour areas. The leafy south west who all vote Tory have faced no such cuts and are actually better off thanks to the New Homes Bonus. It's a heatwave down south if we're using weather as a comparitor. That doesn't mean I agree with the ridiculous reserves that Hyndburn are sitting on. £1.2m above what the Government recommend is ludicrous especially when the town centre is falling apart. No wonder Hyndburn are against an East Lancs unitary with all the money in the bank. Jo_Tom

2:18pm Wed 6 Mar 13

accyphil says...

I don't care about party politics but problem with Hyndburn is that all you councillors are just trying to have a pop at each other and score points.

it's disgusting that the council have saved this money while services are cut, job are lost and the town is dying.

wether labour, conservative or other, hold you heads in shame. you are supposed to serve us not yourselves.
I don't care about party politics but problem with Hyndburn is that all you councillors are just trying to have a pop at each other and score points. it's disgusting that the council have saved this money while services are cut, job are lost and the town is dying. wether labour, conservative or other, hold you heads in shame. you are supposed to serve us not yourselves. accyphil

6:23pm Wed 6 Mar 13

Cllr Ken Moss says...

The recommended minimum for reserves is actually considered to be £3.2m, when pressed for an answer as to where Cllr Britcliffe got the figure of £2m from he did not give an answer (this was at Full Council in February).

Any extra money is being used to reduce the debts left by Cllr Britcliffe. The HBC debt is now down to around £11.2m and we are keen to see that reducing all the time to get rid of the interest payments every month which run into the thousands.
The recommended minimum for reserves is actually considered to be £3.2m, when pressed for an answer as to where Cllr Britcliffe got the figure of £2m from he did not give an answer (this was at Full Council in February). Any extra money is being used to reduce the debts left by Cllr Britcliffe. The HBC debt is now down to around £11.2m and we are keen to see that reducing all the time to get rid of the interest payments every month which run into the thousands. Cllr Ken Moss

11:26am Fri 8 Mar 13

Elegant1 says...

Jo_Tom wrote:
Interesting comment from Peter Britcliffe " It is raining today. Not just raining but pouring". It's pouring Peter because of the hefty budget cuts the coalition have forced on the Labour areas.

The leafy south west who all vote Tory have faced no such cuts and are actually better off thanks to the New Homes Bonus. It's a heatwave down south if we're using weather as a comparitor.

That doesn't mean I agree with the ridiculous reserves that Hyndburn are sitting on. £1.2m above what the Government recommend is ludicrous especially when the town centre is falling apart. No wonder Hyndburn are against an East Lancs unitary with all the money in the bank.
I live in "the leafy South West" and I can assure you that rose coloured spectacles are commom but not reality! The South West is very nice but it is also one of the most deprived low wage areas in the entire country. Our water rates are the highest in the country.

We also have a Tory led council that were hell bent on increasing the sacred cow that is the Council tax. Luckily this was knocked back and there is to be no increase this time round.

One of the reasons for our high water rates is due to locals having to pay for the maintenance of our lovely beaches, that are used freely by you lot, when you flock to our towns and beaches! lol.

As an exile from Accrington I feel sorry for the plight of the business people in the town. It really is sad to witness the demise of the small business' in the town. We are experiencing similar problems, as are many other towns.

Accrington in its heyday was quite a busy and vibrant place to live and work. I do hope that your Council keep fighting your corner with the government in its attempt to reduce the business rates.
[quote][p][bold]Jo_Tom[/bold] wrote: Interesting comment from Peter Britcliffe " It is raining today. Not just raining but pouring". It's pouring Peter because of the hefty budget cuts the coalition have forced on the Labour areas. The leafy south west who all vote Tory have faced no such cuts and are actually better off thanks to the New Homes Bonus. It's a heatwave down south if we're using weather as a comparitor. That doesn't mean I agree with the ridiculous reserves that Hyndburn are sitting on. £1.2m above what the Government recommend is ludicrous especially when the town centre is falling apart. No wonder Hyndburn are against an East Lancs unitary with all the money in the bank.[/p][/quote]I live in "the leafy South West" and I can assure you that rose coloured spectacles are commom but not reality! The South West is very nice but it is also one of the most deprived low wage areas in the entire country. Our water rates are the highest in the country. We also have a Tory led council that were hell bent on increasing the sacred cow that is the Council tax. Luckily this was knocked back and there is to be no increase this time round. One of the reasons for our high water rates is due to locals having to pay for the maintenance of our lovely beaches, that are used freely by you lot, when you flock to our towns and beaches! lol. As an exile from Accrington I feel sorry for the plight of the business people in the town. It really is sad to witness the demise of the small business' in the town. We are experiencing similar problems, as are many other towns. Accrington in its heyday was quite a busy and vibrant place to live and work. I do hope that your Council keep fighting your corner with the government in its attempt to reduce the business rates. Elegant1

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