TORIES at East Hampshire District Council have been accused of bungling finances which has left them facing a crisis unless measures are taken to deal with an estimated £750,000 funding shortage next year.
In July councillors were warned that the crisis could mean a bigger rise in council tax next year.
It could also mean a hike in car parking charges, a rethink on concessionary fares and the councilÕs garden collection service as well as a review of senior management staff.
Last week Liberal Democrats at a meeting of the council refused to support proposals put forward to address the shortfall, with all 12 members abstaining from the vote.
They claimed the councilÕs former financial strategy was in tatters and councillors had been kept in the dark.
Leader of the Lib Dems, Tony Ludlow, accused the Tories of hiding the truth until after the election. He told the meeting the report on the shortfall, which went to cabinet in July, contained some Òshocking predictions and raises the question - how long ago were the councilÕs financial problems known?
ÒThe Conservatives fought an election on the claim that the councilÕs funds were in safe hands and that all in the garden was rosy. About 10 weeks later, we were told that all was not well. It takes a few weeks to write a report like this, so the gist of it must have been known to the leader well before then.Ó
Mr Ludlow wanted to know when the information had been available and why he had not been briefed.
He said the £744,000 shortfall figure was a huge amount which represented 6.3 per cent of the total revenue budget.
He admitted that the blame did not lay entirely with the Tories.
ÒWe understand the financial problem forced on the council by centralising governments. We had an awful time running the council with a hostile Conservative government in power, forcing us to put up council tax, but you blamed us so why shouldnÕt we blame you?Ó he said.
It was time for the council to turn over a new leaf, claimed Mr Ludlow, and involve all parties in the difficult decision-making ahead.
And he warned that Lib Dems would abstain unless Tories guaranteed to listen to their views in the difficult times ahead.
Finance portfolio holder David Onslow told the meeting that there were two major reasons that the council was facing the funding shortfall.
ÒThe first is that funds from central government are predicted to be low, and the second is that the return on our investments is less than we had hoped,Ó he said.
ÒThe first is a very important part of our finances. It represents nearly 60 per cent of our funding, and we are very cautious in putting figures down at this stage.Ó
Council leader Elizabeth Cartwright assured councillors she did not know of the shortfall before the election.
She told the meeting: ÒThese figures represent the worst possible scenarios, it may not be as bad as this, but officers thought it prudent to point out the worst possible case scenarios.Ó
ÒThere are ways in which we can raise the income of this council and reduce our expenditure without necessarily having to resort to putting up council tax above inflation, and we will do our best to achieve this.Ó