The leader of Bournemouth, Christchurch and Poole (BCP) Council has resigned in response, he claims, to the “civil servant and Treasury orthodoxy” within local government that has led to high council tax and cuts to services.
Drew Mellor resigned as BCP Council leader on 13 February “with immediate effect”, confirming that he has also decided to not stand in the May local elections.
In a statement, Mellor said that his approach was “low council tax” and “high ambition” in local government. “But, it has become clear that this has been at odds with civil servant and Treasury orthodoxy who appear determined that the future of local government is one of maximum council tax and cuts to services.”
Mellor highlighted that BCP has proven to balance its budget in the past with council tax freezes, “however, now successive local government ministers, our senior officers and our auditor are determined to hit the taxpayer”.
He added: “The most recent letter from our auditor was the final straw – making clear that despite our long-term financial stability now assured, any attempt to not seek a full council tax rise by generating legal, government-sanctioned income streams would be vetoed without even seeing the detail.”
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In August, the government prevented a Special Purpose Vehicle proposal by BCP Council to sell its beach hut portfolio to a subsidiary company. The authority intended to use the capital receipts to fund its transformation programme.
This news also comes as research by the County Councils Network has found that three in four local authorities are set to increase their council tax by the maximum amount this April.
In response to Mellor’s comments, a Department for Levelling Up, Housing and Communities spokesperson said: “Councils are responsible for managing their own finances and setting a balanced budget. However, the taxpayer would rightly expect us to take action if there is clear evidence councils are engaging in risky investments.”
“We continue to engage with BCP Council and agreed to provide £20m in-principle support for this financial year through the Exceptional Financial Support process. This is subject to an independent review of its finances and governance arrangements, and that the council produce a plan that addresses its long-term financial sustainability. The department is making the necessary arrangements for the review to begin shortly.”
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