Southampton City Council Nearing Bankruptcy Warns Chief Financial Officer - Who Has Been In Power?

 

Independent Councillor Andrew Pope*
on BBC South Today opposing an Elected Mayor

Sadly, it's another case of Labour or Tory, same old story.

by Andrew D Pope*, 23rd February 2023

At yesterday's Full Council meeting of Southampton City Council, councillors considered the budget proposed by the Labour-run Authority.

The budget papers presented to councillors contained dire warnings by the Chief Financial Officer John Harrison of a: 

"precarious financial position of the authority, the high level of financial risk currently faced and the lack of adequacy of reserves".

The chief legal officer also felt the need to remind councillors of their duties on behalf of the public and public money. Why did they need reminding? And aspects of the budget were kept secret. Why? It's our money that they are spending.

Reports have even mentioned that Mr Harrison warned that Southampton could face bankruptcy. Reserves of public money have been drained by profligate spending by councillors over many years and many budgets. When I was on the Council*, I raised many objections about spending, doing so behind the scenes, speaking at public meetings and via Southampton Independents campaigns.

Who Is On The City Council?

The majority of councillors are Labour. The Council also has Conservative councillors and one Liberal Democrat. There are no longer independent councillors. I was one of them but in 2019, I had had enough after eight years of serving the public (trust me, if you represent your council area properly and hold those in power to account, it can be very stressful)*.

Is Labour Credible with Our Public Money?

In short, no - not nationally and not locally. And neither are the Tories.

Today, the Leader of His Majesty's Loyal Opposition, Labour's Sir Keir Starmer has pledged that if Labour wins the next General Election his aim will be to make the UK the highest growth economy in the G7 group of industrialised nations. Labour has also promised to "give power away" to local councils such as bankrupt Croydon and elected mayors such as the soon-to-be-sacked Marvin Rees in Bristol and Police interviewee Joe Anderson in Liverpool.

Can Starmer's promises be believed? Not really, based on the evidence of Labour's record nationally and locally.

How credible can Starmer's promises be, given Labour's record in national Government and in local government? They are not credible promises. Yet the Tories have also now ruined our economy.

Can we trust Labour in power in our Council chambers? Not if you look at Southampton, or Croydon, or Bristol, or Liverpool and many other Labour-run councils.

Let us not forget that the last Labour Government led by Tony Blair and Gordon Brown bankrupted the nation's finances, with Labour Minister Liam Byrne leaving a note to say that "Sorry, there is no money left" and Labour's economic meltdown allowing the Conservatives to be elected to Government with the Liberal Democrats as their junior Coalition partners.

It is useful to look at the record of Labour in Southampton in managing the City Council's finances, and of the financial context of Government decisions. England has a highly centralised government system, unlike other countries like Germany, the USA and Australia that operate a federal system of government. The vast majority of power lies in Westminster, not in Council chambers.

Nevertheless, councils wield power over public money and large authorities control large budgets of tens or even hundreds of millions of pounds.

Labour councillors have been in power of Southampton City Council for every year since 2012, except for just one year when the Conservatives took control between 2021-22. The Conservatives were in power before Labour in 2012.

Therefore the City Council's budget has been decided by Labour councillors for 10 of the last 11 years.

Spending decisions such as wasting tens of millions on the Arts Complex, as investigated and published by Southampton Independents, were made by Labour councillors. Some of those decisions, including on the Arts Complex, were also backed by Conservative councillors. The current Leader of the Council Satvir Kaur and now Chief Executive Mike Harris were heavily involved in some of these decisions over this time. 

And as a Councillor, as shown in the minutes of Council meetings and on the Southampton Independents website, I questioned these decisions and neither Councillor Kaur nor Mr Harris could not or did not provide adequate answers on many occasions. They will be offered another opportunity in a right of reply to this article.

How Is The Council Funded?

The context for City Council funding is that Council finances depend not only on locally-gathered monies from council tax paid by residents and business rates paid by businesses, but also on Government grants from Westminster.

Who Has Been in National Government? The Tories, Mostly

The Tories have been in power since 2010, and have cut Council funding savagely. Conservatives and Liberal Democrats were in Government between 2010-2015, under the David Cameron and Nick Clegg partnership. Cameron took control briefly between 2015 and 2016 and resigned when he failed to lead the Remain campaign in the EU Referendum. 

Since then, our country's people have suffered serial failed Prime Ministers - Theresa May, Boris Johnson, Liz Truss and now Rishi Sunak.

Tory Government has brought us disaster after disaster including delaying and then bungling Brexit, their disastrous and in my opinion, near treacherous handling of the Covid-19 Pandemic and the cost-of-living crisis caused at least in part by disastrous economic management by Rishi Sunak as Chancellor, followed by the brief "lettuce" Prime Ministership of Liz Truss with Chancellor Kwasi Kwarteng.

The Tories deserve to lose the next General Election. They already got battered at last year's local elections, including in Somerset where they lost control of the County Council. It looks like they will be clobbered again in May across England and various sources tell me that the Tories are not optimistic. Let's not forget the above - that Labour's record shows that they are not a better alternative, proven by their failures nationally and locally.

Does The Tory Government Let Off Labour's Failings in Southampton?

No, because the Council decisions over its large budget have also been the wrong decisions with the wrong priorities, and it has not just been the Arts Complex. It is carrying on, right now and in yesterday's Budget. This is why the Officer has issued this warning. It is his duty on behalf of Southampton's people and our public money.

So...Who (Again) Has Been in Power?

Yes, it's Labour or Tory, same old story - with the Liberal Democrats agreeing to cut Council funding when in Coalition with the Tories. Whether nationally or locally, these Westminster parties have let us down.

What Is To Be Done?

If only there was someone or a group of independent campaigners who knew about Council finances from the inside and could sort it out. 

Southampton Independents was originally formed precisely to do this. Our activity was paused between 2019 and 2022, with a watching brief operated by our co-founders on matters in Southampton. What we saw being done by Labour and Conservative councillors was deeply worrying.

There are City Council elections in May where all seats will be available. If you think you could be a Councillor, get in touch with Southampton Independents. We will provide advice and support.

And if that does not happen, it will simply be more of Labour or Tory and the same old story.

Southampton Independents

* For full transparency, Andrew D Pope was a backbench Labour City councillor from 2011-2015 and resigned from Labour to become an Independent councillor for Southampton Independents between 2015-2019. He chose not to stand for election in 2019. Andrew holds a Masters degree in Global Politics and International Relations from Southampton University.