Wirral Council facing massive £17m overspend

Council leader Phil Davies Council leader Phil Davies

WIRRAL’S council leader has pledged to “face up” to the authority’s cash-flow problems as a multi-million pound overspend is revealed.

Councillor Phil Davies, who ordered an urgent review of council finances, wants the accounts to be more transparent following a “significant budget shortfall” over the last three months.

A report due to go before cabinet next Thursday shows the council could be left with a £17m overspend by the end of the financial year if action is not taken immediately.

As a result, plans are underway to report the authority’s financial position monthly to cabinet so problems are dealt with as soon as possible.

And Cllr Davies said he is keen to deal with the issues promptly and will be making recommendations to freeze some spending and releasing reserves.

He said: “Ensuring that the council has a sound budget planning process moving forward is a key part of our plans to drive improvements across the authority.

"That is why I instructed chief officers, including the newly appointed Interim Director of Finance, Peter Timmins, to conduct a full and robust review of all of our budgets.

“The structural deficits that exist in some of our budgets have clearly been a problem for a number of years.

"In the past, we have not had sufficiently robust processes in place to ensure a clear understanding of where budget shortfalls exist.

"As a result, successive political administrations and senior managers were not in a position to tackle these vital issues.

“That is no longer the case and, as leader, I am committed to ensuring this council faces up to the challenge before us. This is to continue to improve our services to residents - and to do so within budget.

“I will recommend to cabinet that we take immediate action, which will include freezing non-essential council spending and releasing reserves we no longer require.

"This will release around £9m. However, much more will need to be done which is why I am launching a budget consultation across Wirral next month that will engage all our residents, communities, the voluntary sector, businesses and staff in this debate.

“With the support of our Improvement Board, we are already changing the way the council gets things done.

"This means facing up to tough facts and making tough decisions. Working together I am confident the result will be a transparent council we can all be proud of.”

And Tory leader Cllr Jeff Green has also promised to support the ruling administration in making the necessary changes.

He said his group would be available to offer any knowledge to achieve the best results.

Councillor Green told the Globe: “I welcome the transparency being put forward as we have been arguing for some time to get some clarity and some openness about what the council spends.

“It’s important that the public are informed of the challenges the council faces and I’m pleased that the administration is following our lead from two years ago and embarking on a public consultation.

“But my concern is that following the actions we took to downsize the council by allowing people to leave and cutting senior management by 25%, it’s worrying that the council is still in a position where it has to make these reductions.

“However we will work with the current administration to use any expertise and knowledge to achieve it because clearly, the council faces serious financial challenges.”

Comments(18)

bigfoot says...
1:12pm Thu 30 Aug 12

It is time the councullors went to Specsavers what they are looking for is blindingly obvious!
What about a focus group drawn from ordinary voters,you know what they are the people that put you in power!

WirralAl says...
4:19pm Thu 30 Aug 12

Once again Bungle and Zippy have more idea than this council.

Perhaps if they stopped paying off ex staff, making so many errors with Cheshire Lines building, DASS, Colas, Many consultants and investigations that they don't act on they might actually have some of OUR money left.

They need to go back to school. Most senior managers are too busy backing each other up they could not look at any important facts.

Lets face facts most of them could not run a bath or if they did they would have to go sick for 3 months to think about what they had done and how else they could blame.

Total embarrassment and a waste of hard earned money.

Still at least you all still get your perks!

johnhardaker says...
5:21pm Thu 30 Aug 12

Wirral Al i could not have put it better myself & I agree with everything you have said,Fat cat taking pensions they have not earned,councilors taking upwards of £1,2million in allowances,corrupt officers,contracts given out without due diligence the list is endless & who are the mugs who pay for it Wirral ratepayers .

briandrummond says...
9:36pm Thu 30 Aug 12

You all seem to be missing the point here, instead once again choosing to rake over the past. Both political parties have agreed to work together on the budget and the council is committed to making some tough decisions going forward - id say that is something to cheer about not moan. Whether they stick to this consensus is another mattef but in the meantime im happy to see some relief from the political bickering.

Jimrob says...
9:57pm Thu 30 Aug 12

briandrummond'

May I be so bold as to speculate that the ONLY reason the two parties have agreed to act together is to ensure that one party does not uncover some scandle the other is responsible for.

It's called "Covering each others backs" and it has been a useful tool that has been used equaly by ALL parties here on the Wirral for at least the last 25 years.

briandrummond says...
10:03pm Fri 31 Aug 12

So what do we do? Sit in our armchairs moaning or worse initiate a witch hunt which seems to be flavour of the month. As i said, if it fails then criticise but in the meantime recognise that perhaps the tide may be turning. Im happy to accept ive been proven wrong in 6 months if you are?

Ben Beaconsfield says...
11:16am Sat 1 Sep 12

All right, Brian. We heard you the first time.......;-)

On a more serious note, and for the sake of clarity, whose budget are these figures based on? Was it the outgoing Con/Lib one or a since-modified Labour one?

dave301bounty says...
7:32pm Sat 1 Sep 12

Your Jokin, how ya gonna aswer questions ,you cant face a camera ,like you cant say were the money has gone ,come on ,not every one is a #####,just a few ,

johnbrace says...
8:36pm Sat 1 Sep 12

Ben Beaconsfield wrote:
All right, Brian. We heard you the first time.......;-)

On a more serious note, and for the sake of clarity, whose budget are these figures based on? Was it the outgoing Con/Lib one or a since-modified Labour one?
This is the Budget for 2012/13. It was originally decided by the Conservatives/Libera
l Democrat previous administration many months ago. The accounts for 2011/2012 are currently going through audit, so the true state of the finances won't be known until the audit is completed (hopefully) towards the end of the month. There are some Labour Cabinet decisions (policy options that had a financial effect) that have changed the 2012/2013 Budget as the Labour Cabinet has control over a (rather) small part of it. Some of these policy decisions have increased expenditure, others have decreased expenditure so the answer to your question is both, as it depends which bit of the Budget you are referring to as to whether Labour have made any in-year changes.

daggers drawn says...
10:12pm Tue 4 Sep 12

Well several months have passed since Phil Davies was appointed leader. We have not seen the promised changes he said he would make. Where are the staff he promised, yes promised he would deal with-still in post and snuggled up to you. Has the CEO got your full support? Don't see much sign of it. The overspend is a disgrace. but lets look at some facts: (I know the answers-do you?) How much has been spent on i pads in 2011& 2012? how much on i phones? What is the cost of all mobile phone & ipad purchases? What is the cost to WC to supplying wifi to all councillors? & many council staff? What was the total phone bill for these phones?What was spent on chairs,desks, blinds, etc (you see the delivery vans almost weekly). What has been spent moving one section 4 times in 18 months? What was spent on overseas jollies to China, India etc? the list is endless and so are the questions.
What are you spending on the womens golf? Don't give us the spin it brings millions into the Borough, have a look at the empty shops in Liscard, Birkenhead, Moreton,Hoylake & West Kirby and tell the shopowners that-you will soon get an answer.Wonder how many complimentary tickets for councillors & staff will be issued this time. Once you have answered some of these questions perhaps you can see where the overspend has gone.
You don't need to look far in the town hall Phil, you just need to open your eyes.

Mrsmccloud says...
11:59pm Tue 4 Sep 12

daggers drawn wrote:
Well several months have passed since Phil Davies was appointed leader. We have not seen the promised changes he said he would make. Where are the staff he promised, yes promised he would deal with-still in post and snuggled up to you. Has the CEO got your full support? Don't see much sign of it. The overspend is a disgrace. but lets look at some facts: (I know the answers-do you?) How much has been spent on i pads in 2011& 2012? how much on i phones? What is the cost of all mobile phone & ipad purchases? What is the cost to WC to supplying wifi to all councillors? & many council staff? What was the total phone bill for these phones?What was spent on chairs,desks, blinds, etc (you see the delivery vans almost weekly). What has been spent moving one section 4 times in 18 months? What was spent on overseas jollies to China, India etc? the list is endless and so are the questions.
What are you spending on the womens golf? Don't give us the spin it brings millions into the Borough, have a look at the empty shops in Liscard, Birkenhead, Moreton,Hoylake & West Kirby and tell the shopowners that-you will soon get an answer.Wonder how many complimentary tickets for councillors & staff will be issued this time. Once you have answered some of these questions perhaps you can see where the overspend has gone.
You don't need to look far in the town hall Phil, you just need to open your eyes.
There are a lot of sweeping accusations made here under the cloak of anonymity. Is that ethical?

Ben Beaconsfield says...
10:50am Wed 5 Sep 12

daggers drawn wrote:
Well several months have passed since Phil Davies was appointed leader. We have not seen the promised changes he said he would make. Where are the staff he promised, yes promised he would deal with-still in post and snuggled up to you. Has the CEO got your full support? Don't see much sign of it. The overspend is a disgrace. but lets look at some facts: (I know the answers-do you?) How much has been spent on i pads in 2011& 2012? how much on i phones? What is the cost of all mobile phone & ipad purchases? What is the cost to WC to supplying wifi to all councillors? & many council staff? What was the total phone bill for these phones?What was spent on chairs,desks, blinds, etc (you see the delivery vans almost weekly). What has been spent moving one section 4 times in 18 months? What was spent on overseas jollies to China, India etc? the list is endless and so are the questions.
What are you spending on the womens golf? Don't give us the spin it brings millions into the Borough, have a look at the empty shops in Liscard, Birkenhead, Moreton,Hoylake & West Kirby and tell the shopowners that-you will soon get an answer.Wonder how many complimentary tickets for councillors & staff will be issued this time. Once you have answered some of these questions perhaps you can see where the overspend has gone.
You don't need to look far in the town hall Phil, you just need to open your eyes.
Good post, daggers drawn. I count around ten questions to which you say you know the answers. So come on, we're all dying to know as well. In the immortal words of Delia, "let's be 'avin' yer" !!

Hugo2009 says...
2:01pm Wed 5 Sep 12

I would love to see the questions answered that "Daggers Drawn" has raised, I like many many others would love to see a bit of Open, Honest, Clean, Fair, corporate management taking place.
I would love to see some real straight forward Co-Opperation between all the elected Councillors in a concerted effort to put right the wrongs, clean up the whole corporate image of Wirral Borough Council, in short I would love to see Phil Davies, become a man and not a louse, come on Phil, open up give an in depth interview with the local media, stand alongside the new CEO and tell the public some very serious changes will be made, and then act on them, without fear or favour.

daggers drawn says...
5:17pm Wed 5 Sep 12

Mrsmccloud wrote:
daggers drawn wrote: Well several months have passed since Phil Davies was appointed leader. We have not seen the promised changes he said he would make. Where are the staff he promised, yes promised he would deal with-still in post and snuggled up to you. Has the CEO got your full support? Don't see much sign of it. The overspend is a disgrace. but lets look at some facts: (I know the answers-do you?) How much has been spent on i pads in 2011& 2012? how much on i phones? What is the cost of all mobile phone & ipad purchases? What is the cost to WC to supplying wifi to all councillors? & many council staff? What was the total phone bill for these phones?What was spent on chairs,desks, blinds, etc (you see the delivery vans almost weekly). What has been spent moving one section 4 times in 18 months? What was spent on overseas jollies to China, India etc? the list is endless and so are the questions. What are you spending on the womens golf? Don't give us the spin it brings millions into the Borough, have a look at the empty shops in Liscard, Birkenhead, Moreton,Hoylake & West Kirby and tell the shopowners that-you will soon get an answer.Wonder how many complimentary tickets for councillors & staff will be issued this time. Once you have answered some of these questions perhaps you can see where the overspend has gone. You don't need to look far in the town hall Phil, you just need to open your eyes.
There are a lot of sweeping accusations made here under the cloak of anonymity. Is that ethical?
Well Mrs. Mccloud-you read my post and then you ask if its ethical for me to post 'under the cloak of anonymity'
ETHICAL how on earth can you say that.
I am about as ethical as the Council.
There are no sweeping accusations they are all observations! and facts take a walk around the areas I mention and ask them if they feel they benefited from the last open golf?. Park yourself outside the town hall and see for yourself the comings and goings of furniture. Go to a council meeting and see them all on ipads & iphones, all I was doing was asking the questions, in doing so I would assume there are some answers.Ask your local councillor what was spent on overseas trips.How much is spent on leasing cars for staff? The questions are all there. Then come back and tell us its ethical, or perhaps you can post and tell us where the £17m overspend has gone, or been spent! Over to you.

briandrummond says...
12:24am Thu 6 Sep 12

Daggers drawn, I'd refer you to a previous point I made. You lose my respect because you remain anonymous. You may very well have a valid point to make in respect of activities of the council over the years but how do I know you are not one of the people you are criticising? How do I know you are not posting entries on a taxpayer funded iPad and you are upset because you see the gravy train reaching its final destination? I am a local taxpayer happy to use my real name because I am proud to live in this area and tired of the infighting that has dragged the council down and most importantly damaged investment in this area - the kind of infighting that goes on on this website by people with vested interests who know full well people would not listen to them once they were aware of who they really were.

briandrummond says...
12:28am Thu 6 Sep 12

Hugo2009 wrote:
I would love to see the questions answered that "Daggers Drawn" has raised, I like many many others would love to see a bit of Open, Honest, Clean, Fair, corporate management taking place.
I would love to see some real straight forward Co-Opperation between all the elected Councillors in a concerted effort to put right the wrongs, clean up the whole corporate image of Wirral Borough Council, in short I would love to see Phil Davies, become a man and not a louse, come on Phil, open up give an in depth interview with the local media, stand alongside the new CEO and tell the public some very serious changes will be made, and then act on them, without fear or favour.
Why should a leader or anyone for that matter be made to answer questions posted in a rant from someone firing salvos from behind a cloak of anonymity?

RL 1952 says...
11:25am Thu 6 Sep 12

One has to look at how the council has spent thousands in recent years that could have been better used - £75K recent audit report, £250K on AKA report and staff that have received payoffs that are in the public domain, CEOs, Drectors of Adult Social Services, 2 senior members of Adult Social Services and that is only for starters must add up to well over £500K and what has improved nothing the distasteful cultures remain despite a so called improvementy board being in place that AK actually sat on!!! Defies belief and understanding

sancam39 says...
9:24pm Sat 8 Sep 12

BrianDrumond:

I think you have answered your own question in a strange obtuse manner.

Every leader in any shape or form spending public money, effecting peoples lives, hopes, and aspirations must aswer all questions from whatever quarter they come from, it is his or her duty, and an obligation to the people who fund his or her life style.

As for anonymity, who exactly is "briandrummond says" or even "Hugo2009" they could be the same people for all we know, what is your point. I too would like to see questions answered with Honesty.

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