'Solemn pledge' to drive down debt mountain
Friday May 28, 2010
The newly re-elected leader of the council has pledged to spend the next four years driving down the ‘mountain of debt’ threatening the borough’s finances.
Cllr Stephen Greenhalgh, began his second term as leader of Hammersmith & Fulham (H&F) Council, by saying: “Reducing the council’s debt is my solemn pledge,” as he addressed the first gathering of new councillors last Wednesday night (May 26).
As Britain’s deficit stands at a staggering £160billion, Cllr Greenhalgh made the council’s longstanding debt his first priority in protecting public services before the Government’s spending squeeze hits local authorities.
The move to cut debt and protect services would ‘free up more money’ for frontline services such as schools, street cleaning and supporting the most vulnerable, according to Cllr Greenhalgh. The amount owed by the council peaked in 2004 at £176million. At that point, the cost of the interest payments alone was £9.5million each year. Since then, the council’s debt has been cut by £43million to £133million – but that still drains £5million from council budgets in annual interest payments before a penny is spent on services for the public.
Some critics have accused the council of selling assets to pay off its debts with little regard for the impact on residents – particularly those who are the least well-off. But Cllr Greenhalgh dismissed these claims as a ‘fundamental mistake’ and defended his plan by saying: “Having cut debt over the last four years, we now have £5million a year extra to spend.
“Where we have assets that we do not need to deliver frontline services, we will sell them off. It is all about people, not buildings. Whatever political party councillors belong to, we all came into politics to help make life better for local people. And I fundamentally believe in social mobility, giving people a hand up in life rather than a hand out,” he said.
“But I am also deeply committed to making sure there is a safety net below which no one can fall. You cannot afford to care if you are swimming in debt and spending millions on debt interest rather than on frontline council services."
