Budget Strategy
This week, Crawley Council’s Cabinet will debate the budget strategy for 2012/13. The whole process seems to come around again so quickly and is a vital part of the Council’s business. Unlike other local authorities, Crawley Council has not had to engage in wholesale cuts to its services.
For 2012/13, we will aim for a Council Tax increase of no more than two per cent. This is markedly lower than inflation as measured by the Consumer and Retail Price Indices. At the same time, we will add more money to the capital programme, with funds for 2014/15 doubling from £5 million to £10 million.
Every year in the autumn part of the budget process, there are bids for new capital projects. Typically not all aspirations can be carried forward but the extra funds will extend our options.
Capital spending is very important for Crawley and in recent years, £30 million has been allocated to the Decent Homes Programme for our Council houses. This is in addition to major flood prevention work and the acceleration of our neighbourhood parade improvements by two years. We should not forget the equally important delivery of the neighbourhood centre regeneration in Bewbush and Langley Green. Looking to the future, we will want to support town centre regeneration and we need the funds to assist this.
There is occasional media interest in the Council’s level of capital reserves, which can only be spent on new projects and not for running day-to-day services. The reserves have been largely inherited through disposal of former Commission for New Towns assets, including land and Council Houses. As a demonstration of our commitment to spending in Crawley, these capital reserves are now £17 million lower than they were a year ago.
Key to our ability to spend capital in Crawley is returning to a balanced budget for 2012/13. This means having our income match our expenditure so there is no direct draw on reserves. Eliminating this dependency means that we can spend our capital rather than appear to hoard it.
Achieving a balanced budget requires new efficiency savings of £650,000 in 2012/13. We have been taking this basic approach with our revenue budget since 2006/7 and it has been very successful. This is illustrated by the fact that in 2007/08, the Council needed £5 million in interest on reserves to help run its services. The equivalent figure in 2011/12 was just £1.26 million. Had we done nothing, the Council would have been in serious difficulties with falling interest rates.
The budget strategy for 2012/13 is an impressive agenda for difficult times. We will deliver a balanced budget, a competitive Council Tax rate, an enhanced capital programme and the continued delivery of our front-line services. All of this will occur despite a further reduction in government grant of 8.6%. We will also deliver enhanced services through our Leisure and Culture Options Review, in respect of The Hawth and Tilgate Park.
Councillor Bob Lanzer, Leader of Crawley Borough Council
5th July 2011