Tuesday, 20 December 2011

Estuary Airport looms in Cabinet


Much expectation today as the Medway Council Cabinet met for the last time in 2011.

One man who was very much in the room, but not literally, was Boris Johnson. Conservative Party Mayor and hotly tipped to be the successor to David Cameron.

There were several important items on the agenda but two particularly stood out; firstly the conversation around the Local Council Settlement grant (the one this blog indicated was utterly disengenuous and more Tory spin) and the Estuary Airport campaign paper (released at 2.59pm) to an eager press and rather thin audience

The agenda item (linked here) on the Local Council Settlement Grant

Interestingly; the Conservative portfolio holder for finance effectively cut and paste my key points on the settlement.

The fact is, and he admitted it, Medway residents are suffering from a Conservative government and that this can not continue.
  • Government has included the Council Tax Grant with the formula grant which is highly disingenuous. Removing this grant the figure is actually where the Medium Term Financial Plan predicted which is good news for the Council... (though im sure better news would have been more money)
  • Floor damping still continues despite the election of a Conservative Government in May 2010 (see Tory hypocrisy on this issue here, here, here and here). This was a major campaign issue under the Conservatives; now under their own government are strangely silent
  • Councillor Jarrett has also raised the prospect of a 5.1% rise in Council tax for the 2013/14 budget year. Though not relevant to the below, the fact the Council Tax Grant has remained flat since 2011 means that after inflation Medway may be signficantly out of pocket by 2013/14. Jarrett is warning the Department no doubt of the political risk. The department has continued to 'lock' all Council tax increases at 3.5% so Councillor Jarrett may have to call a referendum, should this lock be repeated next year. Labour will no doubt keep an eye
  • Coupled with Medway Conservative deficits in revenue budget (£5.1m) and capital budget (£2.8m) all eyes on our benches will be on Q3 forecasts. My question at last O&S on this regard shows there may be some light here. Interesting also the budget assumptions include reductions in adult & care spend for 2011/12; the consultation exercise it seems concluded?
  • The Department for Local Government has also published a disingenuous table on reductions in 'spending capacity' for local authorities rather then the below. Details foundhere show Medway has seen a 3.1% cut, £6.36m or the equivalent of £57.46 for every household in Medway. The Tories have form here on spinning the truth
All of the above points were confirmed by an increasingly angry cabinet; many feel utterly duped by the Conservative Local Government Minister who claimed that Medway would not suffer inappropriately if they were to take power.


The second major item of note was on the Estuary Airport (linked here)

There was a noticeable shift today from the administration that since September (though this blog would argue since 2010) the external environment has changed on the airport proposals to bulldoze over the Peninsula.

There is, finally, as this blog has complained about time and time again, a recognition that simply sitting on hands and lobbying the occassional verbal riposte simply wont do.

It comes as Conservative Ministers are proving evasive in Westminster over the Airport proposals.

Whether it has been imposed on Medway Tories or not, and this blogger suspects it has been, the Local Enterprize Partnership (comprised of South East Council's) have established a working group on aviation expansion in the region. Medway is now obliged to sit at the table which could be seen as a positive to setting out an alternative position to an Estuary Airport, but alternatively, could be seen as a way of silencing our independence and actually squashing us in other Local Authority consensus.

Indeed, the simple fact is this LEP Aviation Group may indeed propose aviation expansion in the Estuary, as Paul Carter suggested a few weeks ago. A letter read out from him today categorically refused to support our Authorities objection to the scheme. This could squash Medway on the negotiating table and leave those in Hoo in a worse position. It is worth noting that other Council's sitting on this body would include those opposing expansion at Gatwick and Southend.

The Tories in Medway have also set up a new Council Cabinet Advisory Group, similar to that set up in 2001-2003 with the hope of leading any opposition to an airport proposal. The composition of this group must of course be equally weighted and its conclusions should be actively considered; this blog wants to wait and see the final outcome and composition of this group.

So what does this tell you. Firstly that despite the bland assurances from our MPs; especially Mark Reckless and Tracey Crouch who now have egg on face over this issue, that aviation expansion is to be seriously considered by local authorities in the region. It is not simply an electoral ploy to play to West London because the Chancellor has himself waded into the debate setting a national context and ruling out Heathrow expansion. Secondly, that Medway is now part of a wider process which could govern (and neuter) a response to any proposals. Thirdly, that the Conservatives on the Council are worried about the current impact (on Peninsula residents on house prices, business plans and communities) and now consider this a plausible existential threat.

Some proposals to be welcomed on face value today but also somethings to be very concerned about.

It's about time.




p.s. Our MPs can not be let off the hook either; they have woefully failed to represent us on this issue and for that they must be pursued and pursued vigorously.




2 comments:

  1. are you saying that Medway council would not have had a settlement as low with a Labour government. what would the grant have been under a labour government

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  2. Anon - that is almost certainly the case. The Tories made the decision to cut the deficit at a faster pace making the cuts to local government deeper.

    Unfortunately they called it wrong - because they cut too far and too fast - before the recovery was seen.

    As a result the predicted double-dip (which Labour consistently warned about in the GE 2010) is sadly happening. People may not yet trust Labour with the economy; but they know things are not right either and that Labour have been right on the core argument about growth.

    The Tories are borrowing an additional £158bn more than Labour and with the private-sector not recovering this may get worse. Incidentally there are other macro-economic factors as well but confidence is driven by government as well. Where are the ideas; car-scrapage, NICs holiday, VAT cuts. No idea from a government of out of touch millionaires

    The low gilt repayments are also a smokescreen as well. Labour had a credible economic package, and one which incidentally, George Osborne has now been effectively forced to follow; just too late in the day. He has moved the 5 year government-term 'deficit-reduction' cycle and extended it.

    I know people dont want to hear it yet; the recession was not caused by government spending, it was caused by irresponsible markets leading to massive bail outs which inflated state debt.
    If we did not have to bail out the banks our deficit could have been managed within a far more sustainable Debt:GDP situation which prior to 2007 was in a very good footing indeed compared to G7 / G30 and compared to that inherited in 1997.

    Government does have the means to stimulate demand and supply mechanisms. The Times today; for the fourth time this year has said the government are not doing enough on growth.

    We have had sluggish growth for 18 months and a government hell-bent on cutting the public sector before the private-sector can pick up the slack. Unemployment is the highest since John Major and the social consequences of crime will result (not helped by butchering police numbers). The Tories have also signed away (because of some extremist agenda) leverage on relationships in Europe who as a major trading partner employ millions of people. We will now suffer European regulation with less power; all to give Cameron a way out to his extreme right wing.

    We do not have a sensible government in office. The sooner the rational and sensible middle-ground recognize this the better for us all.

    The story is not goo

    ReplyDelete