Bath and North East Somerset Council leaders have been accused of “burying their heads in the sand” and waiting for a bailout from central government to prevent bankruptcy.
Conservatives claimed the authority’s finances needed a fundamental rethink or an unaccountable independent commission would come in and sell its assets to balance the books.
They attacked the Liberal Democrat administration for “exploiting” emergency powers to force through permanent changes to meet their manifesto promises.
Council leader Dine Romero said her administration was “seizing the moment to make changes that will be better for all of us”, and ending the authority’s reliance on a single source of income.
But councillor Paul Myers, the Conservative group leader, told the full council meeting on 16th June: “I’m increasingly concerned at the way this terrible and unprecedented situation has been exploited to fetter the role of council and the scrutiny process.
“The emergency powers that allow road closures without consultation are cynically being used to lay the groundwork for permanent closures to meet manifesto commitments.”
The Lib Dems have promised to increase walking and cycling and introduce low traffic neighbourhoods that limit access for vehicles.
During the crisis the council has widened pavements and removed pavements so residents can stay safe while social distancing.
This has taken place without consultation in order to secure Government funding.
Cllr Myers added: “Having lost 20 per cent of its income, this administration has its head deep in the sand, waiting for the return of normality or for the Government to sort it all out.
“There’s a new normal coming. Action is needed now to save the council’s finances and prevent us ending up in section 114 territory or bankruptcy.”
Cllr Romero told the Sunday Times last month B&NES Council was considering issuing a section 114 notice – effectively declaring bankruptcy – due to a £43million hole in its budget.
The move would force it to impose severe spending restrictions.
Cllr Paul May said: “We have to learn from Northamptonshire County Council, which had to serve a section 114 twice. There would be open criticism of any administration that invokes this power, which brings in an independent commissioner to make the difficult decisions the council refuses to make.
“We should be fundamentally looking at our spending to match the funding available, not asking someone else to do it, or selling off the community’s capital assets to fund a revenue problem.
“Any commission charged to carry out this work would have no accountability to the public we serve.”
The council faces a “double whammy” of £10million in new costs and £30million in lost income from its museums, parking and its commercial estate.
It also expects to lose £7.5million in council tax and business rates that residents and businesses are unable to pay.
Cllr Chris Watt said Bath’s tourism sector would not be propped up by staycations, the commercial estate income would not return for five years, and the 20,000 students who normally descend on Bath each September may not return until next year.
“It’s not tenable to imagine the new normal is just around the corner and it’s the same as the old normal,” he said.
“We must face up to the fact that things will be different. It’s not sufficient to say we’ll let the Government pay the bills, and if they don’t, we’ll do a section 114 and that’s it.”
In response, Cllr Romero said: “We’ve had to do things quickly in response what’s come out of Government mouths. We haven’t been consulted before any of the statements. We’re always running to catch up.
“We continue to lobby Government for the money we were promised. I have very low expectations.
“Are Cllrs Watt and Myers aware the Prime Minister has odd expectations when council revenues will return to normal?
“We know the new normal isn’t going to be the same as before. We’re grasping the nettle.
“We’re hoping to seize the moment to make changes that will be better for all of us, and to take away the reliance on a single source of income.”
Cabinet member Rob Appleyard defended the social distancing measures, saying they give confidence to shielded residents that they will stay safe.
He added: “The virus is still there. It still kills. We haven’t for a vaccine. The only thing we’re managing to do is control the transmission. Giving space to go out is so important.”
Cllr Sarah Warren said: “We require a laser-focus on a green and socially just renewal, a determination to build back better.
“Our vision in Bath and North East Somerset is around renewal built around more connected communities, shorter and more local supply chains, support for green technology and home-grown businesses, improved energy efficiency, active travel and farming that’s kind to the environment.”
Stephen Sumner, Local Democracy Reporter
