Eastbourne council is plunging further into debt according to figures released last week, despite a recently published report suggesting an improving financial position by the Lib Dem-run authority.
The discrepancy has today (26 Sept) prompted the Conservative opposition leader to write to the Local Government Minister with responsibility for finance to inform him of the appalling error in the recently published Rapid Finance Review report by CIPFA, and the deterioration in Eastbourne Borough's finances.
Last week, the borough’s Scrutiny Committee heard that the town’s total debt is £181 million, some £67million more than the £114 million reported by the council and unquestionably accepted by the CIPFA review team in reporting to government. The meeting was also surprised to hear of other inaccuracies in the report from the Chief Executive Officer of Eastbourne Borough Council.
The investigation by the Chartered Institute of Public Finance and Accountancy was a condition for the exceptional financial support provided by Government to prop-up the borough during its financial crisis. The report’s finding are not considered credible by Eastbourne’s opposition councillors who are calling on the institute to withdraw the document, claiming the examiners were duped.
“Apart from the scandalous misreporting of the level of debt in council papers, accepted meekly by government-appointed investigators, we have significant concerns over apparent runaway debt and fears that the council is heading towards bankruptcy," says Councillor Smart.
CIPFA says its figure of £114 million of council debt came from July’s Cabinet report, the very document which, at the time, Cllr Smart robustly attacked as “inaccurate”. During that meeting he deemed the Cabinet "not fit for purpose", and called for the resignation of both the Council Leader and Cabinet Member for Finance. Since then, the debt position has increased even further with no explanation.
Eastbourne Conservatives point to a pall of secrecy over the mounting debt. “If a council has nothing to hide, why not explain the situation in an open meeting”, says Cllr Kshama Shore who chairs the Scrutiny Committee.
“This is, after all, tax-payers’ money; they have a right to know. For the past two years we have been asking how the Lib Dems propose to pay their short-term debt, where is the repayment plan? But there is never an answer.”
Caption: Conservative councillors Kshama Shore and Robert Smart
