Conservatives want money from ‘excessive’ budget reserves spent on roads

Rochdale’s Conservative group will call on the council to spend a further £3m on improving the borough’s roads and footpaths at next week’s budget-setting meeting, claiming the amount of money earmarked for reserves is ‘excessive’.

The authority’s financial plan for 2019/20 proposes keeping £17m in reserves as a safety-net against overspends or unexpected budgetary pressures over the next 12 months.

The budget – which includes an overall 5.3% hike in council tax – is expected to be voted through at a meeting of the full council on Wednesday evening.

The Conservatives intend to table an amendment calling for a further £3m to be ‘ploughed into’ improving the borough’s roads and footpaths

Councillor Ashley Dearnley, leader of Rochdale’s Conservative group, said there was no need to keep so much money in reserves.

He said: “We feel £17m-plus in balances is a bit excessive. They have been at that rate for a number of years in case of various issues that never really arise.

“If anybody is creating austerity it could be said it’s this council by holding excessive balances while putting up the council tax (general levy) by 3%.”

The council plans to spend £10m on Rochdale’s highways over the next 12 months, while also investing £2m in footpaths.”

But Councillor Dearnley wants to see the authority go further.

“We want to spend £3m on roads and footpaths, we feel then that the public are getting something back for the extra money they are expected to pay,” he said.

“The reserves are excessive compared to other authorities – they have £17m in reserves for various things that have not happened.

“We think it’s over the top at a time the government is relaxing controls on spending.”

Rochdale has had to absorb some £178m in central government cuts over the last nine years.

But Councillor Dearnley said: “I think council could be making matters worse, while taking the maximum from people in council tax.

“While we go along with that, we feel some of that money should be ploughed into road and footpaths that are still in need of attention.”

However Labour council leader Councillor Brett hit back at his opposition counterpart.

He said: “The problem with Ashley Dearnley is he goes for the easy ones. He never faces up to the fact his government has cut us and cut us, therefore we are going to have to do them.

“Most reserves are committed anyway – one is for insurance claims, one is for PFI (Private Finance Initiative). The reserves that are free are not that high.

“And of course, because of the way the children’s care service is – we have £6m overspend even this financial year, we have no certainty it is going to come down next year.

“The reserves would only cover that for the next three years, but we have not used reserves before, we have always used one-off money to balance it.”

Rochdale Council’s budget-setting meeting will be held at Rochdale Town Hall, on Wednesday, February 27 from 6pm.

Nick Statham, Local Democracy Reporter