Published: Wednesday, 25th February, 2009 11:28am

Council tax negotiations end in turmoil

by Adam Hewitt

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A COMPLETE logjam shut down budget negotiations in Reading as the three parties refused to compromise.

The council meeting to set council tax levels on Tuesday night dragged on until past 11pm but still had to be adjourned until tonight because Labour, the Tories and the Lib Dems on the hung borough council could not reach agreement.

The Tories demanded a freeze on council tax at its 2008/9 level. Officials estimated this would need £2.7m of further cuts from Labour's proposed budget, which is dependant on a 4.24% tax hike.

The Lib Dems suggested cutting agency workers, consultants and the sandwich budget to reduce the tax hike to 3.99%, but still made room for their favoured projects like free bulky waste removal for more residents, a fly-tipping hit squad, and extra speed guns for streets plagued by boy racers. They also wanted to freeze councillors' allowances.

But the other parties condemned their proposal as "tinkering at the edges" and said agency staff played a vital role in caring for elderly people and providing cover when staff were off sick in the social services department.

The Tories were in turn criticised for not coming up with an alternative budget at all while Labour were panned for plundering council reserves to keep council tax low before last year's local elections but for proposing an inflation-busting rise this election-free year.

The meeting broke up just before 9pm after no two parties could reach an agreement on a figure - but nearly an hour-and-a-half later after strained discussions between the party leaders and top officials, there was still no movement.

Labour has 19 councillors and minority control of the council, while the Tories have 18 and the Lib Dems 8 councillors. There is one independent, Cllr Tony Jones, who was not at last night's meeting.

After a series of inconclusive votes, Labour leader Jo Lovelock said: "I'm really disappointed. The Conservatives talk about efficiencies, what this is code for is privatisation. They should have had a list of amendments tonight, but instead we've just heard vague promises. They will be going out telling the people of Reading that only the Conservatives can deliver a 0% council tax increase - but let's get real.

"For the Lib Dems, it's not about delivering services, it's about the newsletters and sound-bytes and results in Reading East."

She was referring to the parliamentary ambitions of Lib Dem leader Cllr Gareth Epps, who said afterwards: "Labour councillors showed no signs of understanding they no longer have a majority. Their idea of negotiation involved no compromise but demands that Liberal Democrats cave in. Their actions tonight have dealt a huge blow to their authority and credibility in Reading.

"The 18 Conservative Councillors failed even to table an amendment. They should realise that they have a responsibility to set a budget and cannot indulge in gesture politics.

"We have behaved openly and with integrity. We tabled our amendment and sought to use it or any other ideas as the basis for negotiations. It is up to Labour and/or the Conservatives to table a proposal in writing. We shall examine any such proposal seriously."

Conservative Cllr Mark Ralph said the council should be renegotiating contracts, switching suppliers and reviewing pay structures to make savings, while Cllr Richard Willis said: "Last year's budget should have set a precedent that we can have a low council tax increase.

"The Lib Dem amendment would save the average council taxpayer about £3 a year, it's completely irrelevant."

Tory Leader Cllr Andrew Cumpsty proposed a performance improvement programme across the whole council to deliver better value for money and said: "We cannot and should not be looking to set a council tax which piles on extra pressures to the residents of Reading at a time when they are struggling."

He promised investment in and improvement of children's services, maintaining funding for community care for the elderly and the current grant level to the voluntary sector.

The full council will reconvene at 6.30pm tonight at Reading Civic Centre. The meeting is open to the public.

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