Southampton City Council (Labour) Asked Government To Increase Council Tax By 15% And Tried To Hide It

Southampton Labour Mismanaging Public Money Again

Last year, Southampton Independents said that Labour's bankrupting of Croydon Council could happen here in Southampton. We were absolutely correct to predict it.

Because it has happened. 

Southampton City Council has been brought to its knees by Southampton Labour. And the Section 114 warning of effective bankruptcy came when Labour Southampton Test Parliamentary Candidate Satvir Kaur was Leader of the Council. Instead of sorting it out, she quit, as did the Chief Financial Officer and the Chief Executive Officer.

Southampton City Council lacks leadership, as it has for many years. They are even struggling to collect the bins, the most basic function of a Council in most residents' eyes.

Yet because Rishi Sunak's Conservative Government is so unpopular, Conservative councillors have been reduced to just 10, with Labour somehow - despite the bankruptcy, bin chaos and lack of leadership, emerging as "in control" (as if!) of the City Council from the May local elections. The Liberal Democrats also gained a seat.

Now Southampton Labour councillors have been forced to admit that they asked to increase council tax by 15%. Worse than that, it was revealed during a chaotic Council meeting that Labour, with the help of Council officers it must be noted, tried to hide the request from local residents as a confidential matter, except that it relates to public money which involves residents' council tax and business rates paid by local businesses.

Is This A New Crisis?

No. Early in 2024, it has already been confirmed by the Labour-run Council itself that it could not balance its books without Government assistance.

This followed the warning early last year before last year's Council budget. The Chief Financial Officer warned, that the Council would have to issue a Section 114, effectively declaring banktuptcy of public finances in Southampton. He then resigned. Since then, the Chief Executive Officer Mike Harris has resigned. And the Leader of the Council Councillor Satvir Kaur also resigned.

Who Is The Leader Now?

Labour Councillor Lorna Fielker, who was elected after Satvir Kaur quit, apparently to concentrate on her Parliamentary ambitions. 

How Are They Going To Sort It Out?

There is no guarantee that those who have caused the crisis can be trusted to sort it out. But to balance the books the Council has been allowed, in an apparent once-off, by Government to sell Council assets (yes, they belong to the public, not councillors). And also to borrow more money. 

Has this dealt with the underlying structural deficit in the Council Budget? There is no evidence yet to say that it has. Will Council taxpayers have to foot the bill next year instead? It is very possible.

Whose Money Is It Anyway?

It is public money. It is your money. It is taxpayers' money. It does not belong to councillors. And certainly not to the Labour Party. Yet they treat it is as if it were theirs and manage it poorly. And they have used it regularly for party political, and electoral, gain. But when they fail to manage it correctly, they expect taxpayers to foot the bill. You should not have to.

Shouldn't They Ask Us First?

Yes they should. For many years, a Council has by law had to have a referendum to raise council tax by more than 2.99% plus the social care extra 2$, totalling 4.99%. This was introduced by the Conservative-led Government when Eric Pickles was the Minister for Local Government. 

Prior to this, there was no referendum necessary. Under the last Labour Government, Southampton Labour councillors put up Council tax by a whopping 18%. There was no referendum of the public, despite it being them who pay the council tax. Councillors decided.

So Whose Fault Is It?

Labour has been in control of Southampton City Council since 2012, for all but one year when the Conservatives controlled the Council. During this entire time, the Government has been a Conservative-lead one. It is a fact that Council budgets have been cut centrally by successive Governments, whether Labour or Conservative. Yet some councils have been mismanaged, whilst others have managed their budgets better.

Southampton City Council has been brought to its knees by Southampton Labour. And the Section 114 warning came when Satvir Kaur was Leader of the Council. Instead of sorting it out, she quit, as did the Chief Financial Officer and Chief Executive Officer.

The previous Council Leader Councillor Satvir Kaur had been in the Cabinet for most of those 12 years, either as a Cabinet Member or as Leader. The Cabinet is the Chief decision-making body of the Council. 

Councillor Satvir Kaur resigned for political reasons and has attempted to use the Council's resources for Labour Party electoral gain to become the Member of Parliament for Southampton Test. But only after bringing the council to its knees and spending your money.

Kaur had previously said that it was a "lie" that the Council was effectively bankrupt. This was despite official advice from the Council's most senior financial officer and the Section 114 warning being widely reported in local media and national media.

As reported here on the Southampton Independents website, Kaur's resignation followed the behaviour of the previous Labour Leader of Croydon Council.

- denial after denial by Councillor Kaur, despite the Chief Financial Officer warning of an imminent Section 114 notice which is Council-speak for effective bankruptcy

- Councillor Kaur accusing local media of reporting these warnings as a "lie" - again despite the warning of her Chief Financial Officer, who then resigned before the 2023/24 budget was approved by Labour councillors

- the Section 114 warning proving to be correct, leading to the Council stating publicly that it could not balance the 2024/25 budget and then only mentioning the borrowing and loan agreement with the Government - the request to raise Council Tax by 15% was not mentioned

How Do We Know About The 15% Raise?

According to the Daily Echo, the request to raise council tax by 15% was hidden in documents that the Council sought to hide from the public at the public meeting, claiming confidentiality.

In effect, it is abuse of the law to protect career politicians like Satvir Kaur.

It is the public that pays the council tax. And pays their taxes.

And who elects councillors to look after their money. So the public has a right to know.

Yet officers and councillors agreed that they would put the requested increase in documents that were hidden from the public under what is called "exempt matters".

Southampton Independents does not dispute that Government and Council should be able to have discussions, before a decision. But once that decision has been made, it should be available for councillors and the public to scrutinise.

Yet the Head of Legal at the Council approved keeping this political decision from the public.

According to the Echo report, the Echo has seen the documents that show the 15% request. And the documents confirm that Labour councillors asked for a 15% increase. But it was turned down by Government.

At the 20th March 2024 Council Meeting ("Extraordinary Budget Meeting") where councillors considered the delayed budget for the Council, the new Labour Leader of the Council Councillor Lorna Fielker revealed that she had asked Government to raise council tax by 14.99% because they could not balance the books. 

Previous reports by the BBC and Daily Echo did not mention this request for a council tax increase. Why? Because the request was hidden in supposedly "confidential" papers, hidden under what are called "exempt matters". 

Councils have repeatedly used "exempt matters" for political (and party political) purposes instead of legitimate and legal reasons. It appears from what has been revealed by the Daily Echo, that this is another such case.

Questions arise...

Why is it one rule for Croydon but another rule for Southampton?

Croydon taxpayers suffered a 20% increase when their Labour-run Council could not manage public money well enough.

Yet Southampton taxpayers are to be spared - for this year at least. When will they get a grip, if ever, of the Council's finances?

Did councils elsewhere make similar requests for council tax increases, but not hide them under "exempt matters". Southampton Independents understands from its contacts elsewhere that other councils were open about it. 

So why did Southampton try to hide it? To cover up the truth for politicians' personal gain and for the Labour Party's damaged reputation.

What happens after the local elections and the General Election? Is this "once off" like the former Post Office Chair Henry Staunton alleged that he was told by civil servants for the Post Office to hobble on until after the Election?

Will taxpayers now be hit with a massive increase to Council Tax after the elections are over?

Will Southampton's council tax rocket? It is still a possibility.

Is it the case that the Conservatie Government is kicking the can down the road, and Southampton Labour councillors are happy that they are able to get away with it for another year?

We shall see. Tell us your thoughts.