COUNCILS STILL STASHING AWAY MONEY

It’s hard to believe that whilst public services are being cut back and in some cases cancelled, many of those councils who have been pleading poverty have put £16 billion in the bank (up 15.5%) despite their councillors railing against 'Dickensian' cuts.

Figures from the Audit Commission disclosed that English councils’ cash reserves stand at over £16 billion this year. £14.2billion in 2011 to £16.4billion this year

The week before Christmas it was reported in the local press that the council had given ‘legal loan agencies the ‘thumbs down’ and instead were promoting their ‘cash box’ credit union scheme.

Instead of Cllr Catherine Piddington pontificating over the limited merits of such a scheme where a mere 2000 residents are understood to have become members and 664 of those members currently enjoying loans, it might be far more beneficial if those councils who are sitting on mountains of invested cash, dipped into their substantial reserves to ensure the protection of front-line services; with a view to build up their reserves, when the economic sunny days return. This way, rather than a few hundred, the whole populous of Tameside could benefit!

Don’t get me wrong here; I’m not proposing they spend the reserves on protecting wages, as it would be absolute folly to pay for day to day services out of council savings. Nobody should be encouraging that. However the money could be invested in capital projects such as planned road maintenance, restoring derelict buildings and land, all of which are highly effective at creating local jobs and providing value for the local community.

The problem the councils have is the same one facing this useless coalition. They’re cutting services not waste and excessive staff. They should be getting rid of the multi layered top tier management but without the ridiculously massive pay-offs. (the BBC springs readily to mind!)

I wonder how much Tameside council are presently sitting on in overseas/high interest investments. Perhaps John Taylor could tell us, seeing as he appears totally preoccupied with where the wealthy place their investments. - After all, UK Councils; along with many individual investors, were attracted by the competitive rates on offer and council financial officers placed millions on deposit with the banks.

Consequently, UK councils were among the hardest hit by the collapse of many of the Icelandic savings banks in 2008.