Conservative councillors voiced serious warnings about Council finances, but it was only in January 2024 that Labour admitted things had gone horribly wrong.
The Labour led council will always blame ‘austerity’ and the Government for their financial problems. It’s an obvious deflection tactic and doesn’t tell the full truth. Between 2011 and 2020, during ‘austerity’, the Council managed to add £65million (see Note) to its total financial reserves. It simultaneously spent £88million of them. Now reserves are close to zero – implying £153million of overall funding was allocated to local Labour policy decisions.
So why have all financial reserves been exhausted so quickly? In 2017/18, the Labour Council ‘leader’ failed to support the Children’s Services team by bringing salaries into line with other local authorities. This led Bradford’s social workers to seek employment elsewhere. Bradford’s costs then ramped up because the only solution was to employ agency staff. Fewer social workers then led to failure within Children’s Services. More children had to be taken into care at an eye-watering cost.
In addition, financing major city centre capital projects such as the Darley Street market, One City Park offices, purchasing the Kirkgate site and the Ilkley Moors Shopping Centre haven't helped!
Some people argue that council finances are failing all over the country so it must be the Government’s fault, but stop and look at the detail: Nottingham (Lab) following the collapse of council-owned company Robin Hood Energy; Birmingham (Lab), because of equal pay claims totalling £760m; Thurrock (Cons) after it provided £665m to companies via bonds, including the purchase of 53 solar farms. Bradford’s financial troubles are also due to our Council’s decisions, not just ‘austerity’.
Note: Excluding COVID funding and changes to capital financing accounting.