Paul Lorber Loses His Reserve

Brent Liberal Democrats are apparently contemplating massively reducing the Council's reserves in the run up to the Local Elections in 2010.

Brent Council, like most large organisations, maintains reserves to cope with unforeseen eventualities (e.g. the recent surge in demand for children to be taken into care). For some years there have been kept at £7.5 million. That may sound like a lot but Brent Council's total budget is £927 million so it is less than 1% of the Council's total spending. Paul Lorber, the Liberal Democrat Leader of Brent Council, is now hoping to raid this reserve. He apparently told the Budget Panel it should go down to £3.5 million.

In terms of financial prudence, that makes little sense. The Council currently has more uncertainity over its income and expenditure than at any time for years, with the possibility of a new government, the likelihood of severe cutbacks in public spending and a whole range of possible new demands on Council services. Indeed, I understand that the financial department has told Lorber precisely that, but he wants to cut the reserves anyway.

The only explanation I can think of is that he wants to delay cuts in services until after the election in order to limit Liberal Democrat losses at the 2010 election. But surely that would be a very cynical thought.