Friday, 12 December 2008

TPA Bulletin: Councils spend millions on publicity; Gordon Brown responds to the TPA

Friday, 12 December, 2008 6:17 PM

 
 
TaxPayers' Alliance Bulletin - 12th December 2008
 
Council Spending Uncovered: Councils spend average of £1 million a year on publicity
 
In December 2007, the TaxPayers’ Alliance produced the first ever examination of the growth of town hall spending on publicity over the last decade, which is itemised in the annual accounts of the 450-plus local authorities in the UK.  It found that councils had doubled their spending on publicity, creating a £450 million publicity machine, at the same time as doubling council tax.  A year later, in the midst of the economic crisis, the first paper in the new Council Spending Uncovered series updates the data for the last financial year.
 
The report, released today, shows that the average local authority spends almost £1 million (£971,985) on publicity. There are 6 local authorities spending more than £5 million on publicity and the 20 councils spending the most money on publicity accumulated an over £100 million bill. However, it's not all bad news. At least 217 councils have decreased spending on publicity, collectively cutting over £25 million from their budgets and proving that councils can cut unnecessary spending. To read the full report, please click here.
 
The media coverage is coming in thick and fast, and so far includes:
Liverpool Daily Post, £7.5m bill for council publicity
St Alban's & Harpenden Review, Council's PR spend revealed
Boston Standard, Lincolnshire council named in top 10 publicity spenders
 
TPA spokesmen also appeared on BBC London, BBC Radio Humberside, BBC Radio Essex, ITV Central, ITV North East, BBC Radio Solent, Time FM and Town 102 FM
 
Gordon Brown responds to the TPA
 
You may remember TPA Campaign Manager Susie Squire's 'Ask the PM' question, which was included in the bulletin a few weeks ago.
 
Thanks to all your votes, Gordon has answered - well, sort of. He posted this last night.
 
Susie is in the process of compiling a video response, but you may have noticed there are a few things he has neglected to mention. Yes, depsite that winning smile Gordon, you can't get anything past us! Even by official estimates, our current debt stands at £633 billion. But, when you include such off balance-sheet costs as PFI debt created under Brown (£110 billion), the Nuclear Decomissioning bill (£73 billion), Public Sector Pensions (£1,071 billion) and Network Rail (£20 billion) our debt adds up to a whopping £1.9 trillion, or 129% of GDP. 
 
Crucially, Mr Brown doesn't answer Susie's question. Ultimately, Britain's economic picture, as shown by the above figures, is bad enough. But what about going forward? The picture is bleak. Alistair Darling announced in the recent pre Budget report that a gigantic £512 billion will be added to this our nation's debt. This will amount to more money (taking into account RPI inflation) than we borrowed to win World War 1. This is terrifying, as it will double official debt to £1 trillion, and push up the cost of servicing our debt from £30.8 billion to £40 billion. The longer term implications of this are higher interest rates - markets will decide we are not such a safe economic bet any more, sterling will devalue further, and everyone will feel even worse off than they do now.
 
But the real question is: why all this borrowing in the first place? Because the other side of this equation is that public spending has gone through the roof under Brown. And if we constantly have to feed this government's addiction to a big state and a bloated, costly public sector, we won't ever be able to stop the steam train of debt.   
 
A bittersweet victory for the 'No' campaign

It was announced this afternoon that the people of Greater Manchester voted in force against the proposed congestion charge, with the 53.2% (1,030,000) turnout voting overwhelmingly against this additional road tax.

No less than 79% of those who voted wanted to reject the charge, and no more than 28% voted ‘yes’ in one any local authority area. This landslide victory marks the death of the Manchester TIF bid and has hopefully discouraged other areas  -  not least the West Midlands councils -  from further pursuing this unpopular scheme.

Yet, though our congratulations go out to the ‘No’ campaign, it is worth noting that this is a very bittersweet victory with huge amounts already having been spent on a project that was disliked from its inception. Though families in Greater Manchester will no longer have to pay the hefty £1,200 per year that a congestion charge would mean, a startling £34million has already been spent consulting, debating, drawing-up and promoting the TIF bid according to the Drivers’ Alliance, all funded by ordinary taxpayers. It just makes it worse that the very residents who’ve paid for this road pricing ambition seem to have been dead against it from the start, and in the end this £34million bought  218,860 ‘yes’ votes – that’s £155 each.

This money has been frittered away by those with a blind commitment to the congestion charge, encouraged by those who stood to benefit. Perhaps, at this very moment the proponents of road charging are busy wondering how to bring its spectre back to life – with a different guise and new spin – and, if they manage a successful resuscitation, let’s hope our councils recognise it for what it is and remember this Manchester vote.

Letters to follow up our reports

As you will have seen in the papers, on the radio or local TV today, our report on local council publicity spending has hit the headlines. But we need your help to follow up our reports with short, sharp letters to your local paper making the points that councils spend and waste too much of our money. TPA activist Bruce Lawson emailed in a letter he got in the Shropshire Star to promote our Public Sector Rich List 2008. You can read his letter here. If you get any letters printed in your local paper, do let us know. We’ve already seen here the publicity our supporters can get when they write into their local papers.

2009 Action Days

We’re busy compiling a list of leafleting and petition days across the country for 2009. If you’d like us to have an action day in your area with other TPA supporters and campaigners, email our grassroots coordinator Tim Aker and we’ll organise an action day near you.

In response to last week’s bulletin we have action days already booked for 2009. The dates and venues are:
Swanage – 6 February and 30 April
Shipley – 6 June
If you’d like to come to these campaign days, please email Tim
. 

Bristol and South West TPA branch established

Last Saturday our Bristol branch met to formally set up a branch to monitor Bristol council and, for the time being, other councils in the South West. If you’d like to get involved please email our organiser James Barlow. You can keep up with the campaign by visiting their blog

A council is not a bank

We found this week that Lancashire County Council has been using taxpayers’ money to lend to other councils in the UK. Today TPA activist Steve Atkinson found through a Freedom of Information request that Cumbria County Council has £112 million deposited in foreign and domestic banks. You can ask Lancashire County Council’s leader why they’re lending to other councils instead of cutting tax here.

Stoke Council rejects TPA offer to find savings

TPA supporter and Stoke councillor Gavin Webb recently tabled a motion at Stoke Council’s full council meeting inviting the TPA to come in and find savings in the council budget. Sadly, the motion failed – Stoke’s councillors are clearly happy with politics as usual and higher taxes for all. You can read our blog on the debate and Gavin’s comments here.

Best of the blogs
 
Campaign: Leek TPA Action Day attracts attention
Campaign: The us and them Olympics 

Better Government: Fiddling with Human Rights Law 

Better Government: Ageing Britain 

Burning our Money: Servicing The Government's Debt 

Non-job of the Week: Non-job of the week