Labour City Councillors have reacted with disbelief today at the disastrous impact of Tory spending proposals which were defeated last week at a key Policy and Resources committee meeting.
At the meeting last Thursday the chief finance officers advice, which was highlighted by Labour finance lead Cllr Dan Yates, made clear that Tory proposals for unpausing investment in commercial property to support the regeneration of Madeira Terraces could have stopped the council being able to borrow any money for capital investment from the governments Public works Loan Board.
Speaking today as the scale of this effect became clear Dan Yates said:
“I was worried last week that the impact of losing preferential access to the PWLB could cost the council tens of thousands of pounds per year in higher interest charges and arrangement fees but I was wrong. Officers advice to me today is that the Tories proposals which they failed to withdraw would have cost the council in excess of one million pounds a year.”
“It’s scandalous that the Tories would want to be responsible for such a reprehensible waste of public money which would put at threat important investment in schools, housing, roads and regeneration. The officer advice on Thursday made clear that their proposal was completely unsound and this additional information from the experts confirms that. I’m glad we were able to vote the proposal down and avoid throwing our investment plans and the cities future into crisis”