Too many people accept Council lies when they say government grants have been cut as they usually go up, and when they say they have to spend all the money under government orders. Councils have wide ranging discretion over spending in many areas, and usually overextend their remits and spending to indulge themselves, employ too many staff and seek to compete with private sector leisure and sport facilities with subsidised offers. They are keen to draw down grants for spending items they do not have to do just because there is a grant available. They are often wanton with capital as they have access to plenty of subsidised borrowing.
If you want to make your Councillor more accountable, ask them a simple question. What is the total spend of your Council this year? Most will confess they have no idea. A few will venture a figure. The figures given are usually well below the true total. They often miss out all the capital spend and borrowing. They often miss out the Education budget as it is usually covered by a full government grant. They sometimes offer a figure that is net of all government grants. They rarely know if you ask a supplementary what the actual definition of the spending figure they have been given is.
The officers often produce extremely complex figures making it difficult for Councillors to see just how much spending they are in practice approving. Years ago when I was a County Councillor I needed to insist on simple total cash spend figures, as the officers in inflationary times always wanted to show us inflation adjusted so called real figures to disguise the large increase in cash outgoings. Looking at Council websites on finance today there are a variety of ways of netting off grants, trading income, and borrowings to give the impression of a lower total.
Councils are usually desperate to spend more. They grab any grant going, however undesirable the purpose of the spending as it does not directly bear on the Council tax. They are desperate to get up their trading income by milking motorists with high car park charges. They ignore the fact that their Council tax payers are also national taxpayers having to pay for the grant, and ignore the way the grant may buy a capital asset or put in a service which then comes to impose costs directly on Council taxpayers in later years.
I did persuade the last government to get some control over wanton buying of commercial property as “investments” just before a likely collapse in shop values from the growth in on line retail. There need to be stronger controls on municipalisation, on buying up property in the Council area, and on “investing” in green technologies which should be done by the private sector under a market test.
NB Government grants, business rates, Council tax and schools grant for English local government was £77bn in 2019 and £145 bn 2026. What cuts?