(Image: Grant Shapps: The housing minister said it was unacceptable for Labour councils to sit on vast reserves while making political cuts)Labour councils are today accused of slashing services while sitting on billions of pounds.
The Government claims many authorities are refusing to touch contingency funds meant to cushion them in difficult financial times.
Local government minister Grant Shapps said some were even increasing their reserves while attacking front-line services.
‘It is totally unacceptable for Labour councils to make political cuts while sitting on cash reserves of billions,’ he said.
‘Sensible financial planning is about putting cash away when the sun is shining so you have some cover during the rainy days. Thanks to Labour’s deficit, it is now pouring.
‘These reserves exist to ensure councils can react to unforeseen situations like clearing up the economic mess left by Labour.
‘People will rightly be shocked that Labour councils have billions stashed away when they hear stories of cuts to services. They should learn from the Conservative councils across the country who are finding innovative ways to save local taxpayers’ money while delivering more for less.’
The Government is embroiled in an increasingly bitter war of words with Labour councils which have been accused of slashing popular and emotive services as an act of political sabotage to damage the Coalition. Some are also accused of refusing to cut salaries of chief executives paid far more than the Prime Minister.
Today Mr Shapps will publish a list of ‘worst offenders’ which he says are reluctant to dip into their ‘rainy-day’ funds. Read More
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