Barnet Conservatives Criticise Labour's Budget Gap Claims

Barnet Conservatives have criticised the Labour council's handling of a £200 million budget deficit, asserting that no substantial progress has been made towards closing the gap since Labour took control. The opposition group disputes the council leader's account of how the deficit arose and criticises recent policy decisions.

Council Tax and Government Mandates

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The Conservative group highlights that Barnet residents currently pay significantly less in council tax than the government's 'notional' rate suggests. According to their figures, every Band D household pays over £400 per year less than the national average calculation would imply. This approach, they argue, kept money within local families rather than accumulating it in council reserves. The Conservatives maintain that their administration prioritised keeping council tax low, aligning with residents' wishes.

However, the Conservatives contest Labour's current stance on council tax. They point to Labour's election leaflets from May, which alleged that the Conservatives would increase council tax by over 50% and exceed legal limits. Labour had also promised to avoid 'costly referendums on council tax' and to make increases a 'last resort'. The Conservative group argues that Labour has since raised council tax close to the maximum permitted almost annually, which they suggest contradicts these earlier promises.

The push for higher council tax rates is attributed by the Conservatives to a Labour government initiative. The government's Fair Funding Review reportedly calculates Barnet's grant based on residents paying a 'notional' council tax at the national average. This, the Conservatives state, implies a Band D rate of £2,060 for Barnet, an increase of over 30%. They contend that any such hike would be a Labour policy implemented by the local Labour council, despite previous assurances to voters.

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In-housing Services and Capita Contract

The Conservative group also scrutinised the council's decision-making regarding the Capita contract and bringing services in-house. They note that a cross-party committee, chaired by Conservatives, voted 13-0 in December 2021 to bring four services back in-house at a neutral cost. Labour subsequently expanded this to nine services. However, the Conservatives highlight that the estimated extra cost for bringing remaining Capita services in-house in July 2022 was £2.616 million per year. While this estimate has since been revised downwards in subsequent council papers, the Conservatives question the transparency of the total costs involved, including pension liabilities and the expense of the Oracle system that replaced Capita.

The Conservatives point out that Labour has since re-outsourced most of the services that were initially planned for insourcing. Full insourcing was 'considered and discounted'. Only IT services, involving approximately 18 staff, are being brought in-house, reportedly due to the collapse of a replacement contract. This contrasts with Labour's stated intention to bring more services back under council control.

Peter Zinkin, leader of the Barnet Conservative group, stated that Labour cannot reconcile its past promises with its current actions. He urged the Labour group to be clear with residents about any planned council tax increases towards the government's suggested level, rather than deferring such announcements until after the budget is set.