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The Guadian: Northamptonshire, Tory-run council runs out of money to meet obligations


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The Guardian: Tory-run council runs out of money to meet obligations

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A Conservative-run county council has signalled it is close to effective bankruptcy after admitting that “severe financial challenges” mean it is unable to meet its financial obligations in the current year.

Northamptonshire county council issued a section 114 notice on Friday afternoon imposing financial controls and banning expenditure on all services except for its statutory obligations to safeguard vulnerable people.

A section 114 notice is effectively an admission that a council does not have resources to meet current expenditure, that its financial reserves are depleted and that it has little confidence that it can bring spending under control in the near future. It is understood Northamptonshire is the first local authority to issue a section 114 notice for two decades.

What happens next? Will it get some help?

Edited by Fairyland
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9 minutes ago, Fairyland said:

Mods, there is a typo in the thread title that I am unable to edit. It should read 'The Guardian'. Please correct.

I think it's quite appropriate; The Guardian is full of typos. I've made a study of these things, regularly reporting every single one of them to the editor. He's so impressed with my thoroughness he says that the editorial team view me as a cult.

Edited by Shrink Proof
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32 minutes ago, Shrink Proof said:

I think it's quite appropriate; The Guardian is full of typos. I've made a study of these things, regularly reporting every single one of them to the editor. He's so impressed with my thoroughness he says that the editorial team view me as a cult.

Are you sure he said cult?

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On Radio 4 this morning.  I was a bit asleep but seemed an utter shambles of an interview with a phone line challenged councillor and a professor who seemed to know little/no specifics. 

Interviewer gave the councillor a chance to explain and she blamed central govt.  He then asked something about the £53m (?) new council HQ.  Councillor then seemed to imply it would now have to be (or was) a sale and lease back but said it would save on running costs. 

I wonder if the original business case was based on running costs alone.  Have to see what's the correct situation.

Edited by Fence
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42 minutes ago, Shrink Proof said:

I think it's quite appropriate; The Guardian is full of typos. I've made a study of these things, regularly reporting every single one of them to the editor. He's so impressed with my thoroughness he says that the editorial team view me as a cult.

:lol::lol::lol::lol:

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Errrmm .... come after buy-to-let landlords to claw back unpaid tax revenue, increase council tax further on second properties and empty properties, increase council tax band rates on larger homes, go after AirBnB landlords more aggressively? But more likely, as councilors and MPs don't like to interfer in their own housing interests, increase parking restrictions and fines, increase local business rates, cut local services... rinse, lather, repeat, till Northampton resembles in a third world nation but hey! Everyone has a million pound valuation on their property!

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It is understood that the council is facing a £10m overspend on its budget this year, mainly driven by rising demand in adult social care services.

http://www3.northamptonshire.gov.uk/councilservices/adult-social-care/Pages/default.aspx

http://www3.northamptonshire.gov.uk/councilservices/adult-social-care/Pages/help-and-support.aspx

Thoughts?

 

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Reason it's Tory run is because it's full of oldies whom the tories made unsustainable election promises to vis a visit triple lock, nimbyism, help to sell, etc etc. And now they've run out of money because old people aren't cheap to keep and don't pay many taxes (see my above point). Just a guess.

Edited by Si1
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1 hour ago, Shrink Proof said:

I think it's quite appropriate; The Guardian is full of typos. I've made a study of these things, regularly reporting every single one of them to the editor. He's so impressed with my thoroughness he says that the editorial team view me as a cult.

Speaking as a serial typoist, i think they meant to use an n rather than l in cult.

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3 minutes ago, Si1 said:

Reason it's Tory run is because it's full of oldies whom the tories made unsustainable election promises to vis a visit triple lock, nimbyism, help to sell, etc etc. And now they've run out of money because old people aren't cheap to keep and don't pay many taxes (see my above point). Just a guess.

Yep.

Let them burn.

Then make them pay the yaxi fare for the home help to come and help them.

We get similar in NY. Nimbys who wonder why theres no cheap labour - no young people.

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3 minutes ago, stormymonday_2011 said:

That was Northampton Borough Council not Northampton County Council.

They are separate entities with their own budgets.

 

Point taken, I didn't read it closely enough. I'm sure that Northamptonshire has the best politicians money can buy.

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1 hour ago, Fence said:

On Radio 4 this morning.  I was a bit asleep but seemed an utter shambles of an interview with a phone line challenged councillor and a professor who seemed to know little/no specifics. 

Interviewer gave the councillor a chance to explain and she blamed central govt.  He then asked something about the £53m (?) new council HQ.  Councillor then seemed to imply it would now have to be (or was) a sale and lease back but said it would save on running costs. 

I wonder if the original business case was based on running costs alone.  Have to see what's the correct situation.

Here we go:  http://www.bbc.co.uk/news/uk-england-northamptonshire-42815376

What happened to all the sale proceeds, if any?  Would be nice to see the numbers to understand what happened.

Or is this just about central govt letting local govt take the flack.  Mention of an unpresented increase in demand for services - the true cost of FOM, paid by us, not the benefiting corporates.

Edited by Fence
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7 minutes ago, Shrink Proof said:

Point taken, I didn't read it closely enough. I'm sure that Northamptonshire has the best politicians money can buy.

It is still worthwhile point because one of the reasons local government is so costly in the UK is because responsibilities are split over so many layers. One way to save money would be to abolish County Councils and to pass their responsibilities either up to central government (already happening with education) or down to District or Unitary authorities. That would allow whole layers of duplicated bureacracy in areas such as Finance, HR etc to be rationalised. In addition everything at County level from Councillors expenses to Chief Executive pay seems always to be a lot more expensive than at District level 

Edited by stormymonday_2011
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22 minutes ago, stormymonday_2011 said:

It is still worthwhile point because one of the reasons local government is so costly in the UK is because responsibilities are split over so many layers. One way to save money would be to abolish County Councils and to pass their responsibilities either up to central government (already happening with education) or down to District or Unitary authorities. That would allow whole layers of duplicated bureacracy in areas such as Finance, HR etc to be rationalised. In addition everything at County level from Councillors expenses to Chief Executive pay seems always to be a lot more expensive than at District level 

Yeah.

My worst/best example is Stockton, Middlesbrough, Redcar and hartlepool coucils.

4 underperforming councils within 5 miles of eachother. All pissing money away duplicating jobs, employing idiot family members.

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Headline doesn't make sense. For the past few years, Nothamptonshire has consistently been in the top 5 nationwide for houseprice growth, buy-to-let investment and inward EU migration. The coffers should be overflowing with new tax revenue. Unless folk flipping property and letting aren't paying much tax and the migration is mostly low-skilled, low income, using services and maybe claiming HB and income support, possibly earning below the tax threshold. Very odd, doesn't make much sense in the middle of a regional economic boom.

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43 minutes ago, spyguy said:

Yeah.

My worst/best example is Stockton, Middlesbrough, Redcar and hartlepool coucils.

4 underperforming councils within 5 miles of eachother. All pissing money away duplicating jobs, employing idiot family members.

Try the Welsh National Assembly mafia prattling on for nothing and sucking the life blood, including all those overseas offices, while the Welsh NHS burns.  It's little old Wales FFS.  Get your prorities right you parasites.  There's no nationalistic pride or benefit in such a monster.  The ultimate client state coming to a country near you.

Edited by Fence
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3 minutes ago, Fence said:

Try the Welsh National Assembly mafia prattling on for nothing and sucking the life blood, including all those overseas offices, while the Welsh NHS burns.  It's little old Wales FFS.  Get your prorities right you parasites.  There's no nationalistic pride or benefit in such a monster.  The ultimate client state coming to a country near you.

Prattling in Welsh....

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