£35 million won’t be spent by council this year (Islington Liberal Democrats)

Islington Liberal Democrats <Islington_ld@cix.co.uk>

£35 million won’t be spent by council this year

December 1, 2011 12:00 AM

A massive £35million of planned council spending will not take place this year, a shock report has exposed.

The council's capital budget is projected to be underspent by £35million by the end of the financial year in April 2012. This represents almost 20% of the planned overall capital budget. This funding is used to build new housing, improve the borough's schools and roads and provide local jobs.

The report to the council's last Executive meeting showed that halfway thourgh the financial year the council has only spent 30% of the allocated budget. This represents an underperformance of 40%.

Islington Liberal Democrat Finance Spokesperson, councillor John Gilbert, said:

"To have only spent 30% of the programme in the first 6 months of the year is just incredible. We are in the middle of a recession and the work and jobs that the council's capital programme provides are desperately needed in Islington right now.

"Even with the revised spending target agreed by Labour councillors, it will mean that £35million of capital investment in the borough is set not to happen.

"I am not at all confident that there will be sufficient catching up in the second six months. Based on current performance, the capital programme could in fact be underspent by £65million by April 2012.

"These are truly shocking figures. Labour councillors need to get a grip on the council's finances and explain to residents why the new homes and school improvements they have been promised are not happening yet."