In the meeting, Labour’s leader Cllr Michael Moran gave a damming appraisal of the budget presented by the incumbent Conservative-led administration and shone a light on the precarious position the Council faces in the mid-term. Cllr Moran also presented a fully costed amendment to the budget designed to reduce cost burdens on residents in 2024/25 and kick start a much needed revival of the Borough. Each Labour Cllr also spoke on the amendment demonstrating unity, credibility and a readiness to take control of the Council after the May elections.

In recent years Rugby Borough Council has benefitted from delays within central government in relation to the business rates reset. The delay enabled the Council to collect higher rates than is currently spent in providing services to local businesses, enabling the Council to save a proportion of what was left and build-up significant reserves. That is set to change as the reset is implemented and other sources of central government funding are cut. The budget booklet presented at Council shows how in 2013/14 approaching 45% of Rugby Borough Council’s yearly funding was from Council Tax but by 2025/26 the Council will be reliant on Council Tax for 70% of its funding. The Conservative budget set out plans to use the reserves to bridge the funding gap and itself acknowledges that there is no vision for income generation or long term solutions.

Summarising the implications, Cllr Moran said “as it stands right now this Medium Term Financial Strategy is timed exactly to stop at the point the cash runs dry and this Council’s financial position literally falls off a cliff” adding that “according to this Conservative budget, come 2029, this Council has to find an extra £5.4m except by that time the reserves are all spent so what are you proposing to do then? The report is strangely silent on that one.”

Cllr Moran summed up on this issue by saying “Let nobody be in any doubt, this Council has got lucky in being able to retain a larger than average proportion of business rates but given the absence of any sensible business planning within the Town Hall all it has done is temporarily postpone the day of reckoning”.

Cllr Moran highlighted that in this context it was unforgivable that the Conservative-led Council had opted not to collect around £20million over the last decade from developers through the Community Infrastructure Levy (CIL). Cllr Moran quoted the Council’s total net revenue budget was £21.746m for 24/25 and said the uncollected CIL was “pretty much an entire year’s worth of revenue … That is absolutely shocking and surely deserves an apology and an independent investigation.”

Cllr Moran highlighted other significant missed opportunities, such as the Council’s record on Climate Change. After declaring a Climate Emergency in July 2019 and promising £1million of funding, the Council is due to spend just £15,000 in the current financial year. Significant underspend against the Town Centre Fund and the Transformation Fund was also highlighted.

Summarising the lack of ambition to regenerate while the money was flowing in, and somewhat passive approach to planning for the financial cliff edge, Cllr Moran said “to see real change quickly. To inspire people to believe in the town and its Borough we need a Labour Group in this administration. We not only need a strategy for growth but an actual plan and commitment to deliver. No more Conservative hollow promises, fake news headlines and inadequate processes. Instead, we need a better, fairer and greener Rugby.”

Cllr Moran attacked the Conservative Council leaders targeting of specific services to bear the brunt of the necessary financial belt-tightening. The Labour leader said “despite us supposedly being in the midst of a Climate Emergency this Council is putting a 20% increase on the cost of green bins in the Borough despite acknowledging in its own calculations this will mean a minimum of 1,000 households giving up on this key service”. Labour put forward an amendment to freeze the cost of green bin charges which was voted down.

“And then there is the attacking of the weak and the vulnerable. It is an absolute disgrace that 20%+ increases are being placed on the costs of new burial plots without so much as an explanation or an apology. Or increasing the cost of key critical lifeline alarm services for the elderly by 10% without any contingency planning to pick up the shortfall for those that cannot afford these increases in the midst of a cost of living crisis”. Labour’s amendment suggested an inflation linked increase on burial plots instead of the 20% hike and to cut the lifeline alarm service by 20p per week. Again these amendments were voted down.

In summing up the Labour position Cllr Moran said “we need a Council that is totally transparent and makes sound decisions based on key evidence and financial analysis. Rugby needs a Council that stops making crude knee jerk decisions and instead employs professionals to put together medium and long term strategies”.