LAUNCESTON Town Council has approved a 16.4% increase in its precept, despite pleas from councillors that many residents, who rely on foodbanks, cannot afford the rise.

Meeting on Tuesday, January 21, the full council was asked to set the budget for 2020/21, following a recommendation made by the Finance & General Purposes Committee. This would give rise to an increase in precept of £108,082, or 16.4%.

The town council maintains two types of reserves – a general reserve which represents the non-ring fenced balance of council funds, and earmarked reserves, which provides a means of accumulating funds for use in a later financial year, to meet known or planned policy initiatives.

In a report circulated to councillors from Helen Gribble, the Responsible Finance Officer, a number of reasons were given for the £108,082 increase. These included salaries and wages – the addition of two new members of staff since the production of the last budget and a decision still awaited from the government regarding pay increases to the salary scale points; rates, electricity, water – budgeting for the rising costs of utilities; grants received – a reduction in the number of grants set to be received; Lawrence House Museum grant – increase due to the employment of a permanent full time curator; budget for transfer to earmarked reserves – the net figure requested by the Estates and Properties Committee to be earmarked for future property maintainence and equipment renewal; Launceston Christmas lights enhancement.

It was stated that the council requires a budget of £1,053,564. Aside from income generated from the town council assets and a CTS grant, the remaining £765,203 would be funded from the council’s precept.

The increase of £108,082 or 16.4% would have an effect of a Band D property of £32.50 or 14.8% to £252.49, which works out to be an increase in cost of 69p per day.

In discussing the proposal, Cllr John Conway said he would like to speak against the increase in precept and said he would like to resign as chairman of the finance committee.

But he was stopped by mayor, Cllr Dave Gordon who said the council needed to take a vote on the porposal.

But Cllr Conway said: “We need to have a budget increase. We’re still in times of hardship. People are using the foodbank. People are struggling. To put 16.4% increase on the precept, nearly half of which is going into reserves, into earmarked reserves, that’s not the amount we are going to spend, it’s wrong to ask the people to do it. I just can’t support that amount. A single figure is a compromise, we can juggle figures around.

“Going to 16.4% in these times of austerity, I’m quite happy speaking against the motion at present.”

Cllr John Harris asked: “I want to know, yes or no, is it true that we’re asking for that increase and not spend it? I can’t see we can justify a 16.4% increase.”

He noted that Cornwall Council’s section of council tax is limited, but added: “We’ve jumped quite substantially.”

Cllr Gordon explained that the town council puts aside a certain amount each year for building reverses, in case there are problems arising from the buildings that are among the council assets.

Cllr Joan Heaton said she went along to the finance committee meeting to observe, and at that meeting the chair of the finance committee and chair of properties voted against the rise, so she went home and looked at the figures.

“While I like saving, I don’t think this is the time. Cornwall Council is capped, the police are capped, we are not. In Launceston, 20% of children live in property. 55% of people who use foodbanks are in employment and are on minimum wage. People are struggling. I think this is a moral issue. People are far more important than properties.”

Cllr Heaton asked for a recorded vote on the issue as she felt people want to know who they are voting for.

“This is hurting people and hurting people when they are losing their jobs.”

Cllr Margaret Young drew some comparisons with neighbouring towns. Last year a Band D house in Bodmin paid £325.29, in Callington they paid £200.65.

“These towns haven’t got the facilities that we have to look after. We have four lots of public toilets that are open. We have many buildings, we have play areas that people can use freely, we have allotments. We are actually in line with the rest of Cornwall.

“I know it’s a lot of money. I know that what Cllr Heaton is saying is right in lots of ways, but we’ve got to look after what we’ve worked darn hard to get and keep at a high standard. If we like a lovely place to live, we’ve got to look after it.”

Cllr Paul O’Brien said: “When I look at this argument the phrase that springs to mind is ‘The road to hell is paved with good intentions.’”

Cllr O’Brien said Cllrs Heaton and Conway gave a legitimate argument that the precept is a step too far. He understood, but disagreed with it.

He recalled when the town council undertook the refurbishment of the Town Hall. A considerable proportion of the cost was as a result of dismissal of responsibilities where insufficient funds were put aside to maintain the fabric of the building.

“When we took the decision to do up the Town Hall, we knew that was the first step to put ourselves on sound financial footing.”

Cllr O’Brien said in sorting out the long term future, there are earmarked reserves put in a specific segment of future expenditure, so as to not incur a spiralling gross debt on the council.

“You can go to other towns and you’ll walk round cross legged as there are no public toilets within ten miles.”

He also noted that in his time on the town council, there have been lots of complaints made about the town facilities but no complaints made about the level of precept charge.

“This town wants quality. It wants quality of service. It wants quality of facilities. It doesn’t want to see them scrapped and thrown away. It’s taken a long time to get to this present position and I’d hate to see it thrown away.

“I think a little bit more pain is worth it for the overall gain for the quality and level of service that we are able to provide.”

Cllr Rob Tremain added: “We are looking to the future to make sure we have enough back pocket money to look for any problems that may arise. We’ve taken on several things from Cornwall Council that they were going to do away with [such as the toilets and library]. Our town deserves it. If folks need the services that we are providing, they need to be paid for.”

Cllr Heaton said: “Every point I have heard is valid. The point is people are using foodbanks in our town. People having this tax bill, they don’t care what they’re paying in Callington. The fact is here and now – people are going to get bills, they’re on minimum wage, they’re worried about feeding their kids. It’s a moral argument.”

Cllr Leighton Penhale said: “I sat on the fence. I didn’t vote. I didn’t vote because I have a conscience and I felt there are those who are struggling, but 69p a day, £39 a year, a cost of a round of drinks. To be a council that’s prudent and does good housekeeping is recommended.”

Cllr Gordon added: “My personal view is I think it’s a shortsighted view to bury our heads in the ground. It would be stupid of this council to ignore what this council has produced. You don’t have to like the proposal but I think it’s a responsible road that the council should take. We have a duty to plan for the future. We’ve got a national class venue. Many artistes have come to the town and said what a wonderful place it is. We should be proud and hold out head high. It’s our responsibility for everyone that lives in Launceston – the old and the young.”

Cllr Gordon said people need to be ‘open minded not narrow minded’ and referred to it being a ‘proactive and progressive council’.

“Everything we do needs to be funded. We need to plan for the future.”

Cllr Brian Hogan said a lot of the properties in the town would not be Band D but instead would be Band A or B so they would not pay as much increase.

Cllr Conway proposed that the figure of 16.4% be amended to 9.9%. He said it would be the top of single figures, but he calculated it would give around £10,000 in reserves.

“We’re still asking for more than some can afford.”

This was seconded by Cllr Brian Keighley. Four voted in favour, ten against and one abstained from the vote.

The recorded vote was then taken on the original recommendation – to increase the preceot by 16.4%. It was proposed by Cllr Hogan, seconded by Cllr Nolan. Ten voted in favour, four against and one abstained. The motion was carried.