Council Accounts Referred to Watchdog
July 4, 2007 10:39 AM
The Council's financial accounts have been referred to the local government watchdog, the Audit Commission, after a member of the Council's Audit Committee refused to sign them off over concerns that they did not reflect the potentially disastrous motion approved by Full Council on 19 June 2007.
Cllr Sean Emmett (Lib Dem, Lockleaze) who is a member of the Audit Committee said:
"On 19 June 2007 Labour and Tory Councillors passed a headline-grabbing motion promising to reduce Council Tax. The Council's Chief Financial Officer believed it could undermine the level of grant that Bristol receives from central government and result in a lower "capping limit", which would leave the Council little room to manoeuvre when setting the level of Council Tax. This would then place front line services at risk if Council Tax collection rates fell, forcing drastic cuts to services for vulnerable people.
"Of the £3.6m surplus in 2006/07, £1.6m went to the revenue account to reduce the council tax in the current year, and £2.0m to capital projects as a contingency against greater than expected costs, for example the building of new Redland Green School. If the Council ties its hands by promising the transfer the whole of any surplus to the revenue account then long capital projects may be delayed or put in jeopardy if similar cost overruns occur in future".
"In my view the passing of this reckless motion was a significant "post balance sheet event" that should have been referred to in the Council's accounts. I therefore asked for a rider to be added to the accounts to that effect, but the other members of the Audit Committee would not agree. Without that rider I was unable to agree to the accounts as put.
"I have referred the decision to the Audit Commission and asked for their views on the matter and the implications of the motion passed"
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