Borders Council 'has failed to learn financial lessons'

Andrew Tulley, the high-profile leader who stepped down two years ago in the wake of a 4 million overspend by the council’s education department, said the new administration had failed to learn the financial lessons of that debacle.

But the head of the new coalition ruling group dismissed the criticisms, and said taking financial advice from Mr Tulley "would be like taking childcare advice from King Herod".

There was strong condemnation of the council’s systems of budgeting and monitoring last year when a 8.2 million surplus for financial year 2002-3 was revealed.

Now Borders local government services are heading for a 3.5 million budget underspend when the 2003-4 accounts close on 31 March. More than 60 payments to be carried forward and so-called virements - movement of cash between services or departments - are being made to balance the books.

Mr Tulley said: "The information in the latest report on the revenue budget, including the massive 3.5 million underspend clearly shows the council is not yet back on a sound financial footing.

"Councillors do not seem to be receiving updated, accurate and timeous reports on the expenditure so that adjustments can be made."

He claimed budgeting appeared to be inaccurate when so many changes were having to be introduced so late in the financial year.

"The auditors should be clamping down in the interests of council taxpayers to make sure the authority is on top of its finances.

"The report into the education overspend stressed the need for regular, accurate financial information coming to councillors, but that is still not happening."

He also condemned the council for failing to hold any public consultations prior to the setting of the 2004-5 budget and the 5.4 per cent increase in council tax.

But David Parker, the leader of the ruling coalition of independents and Conservatives, said: "Taking financial advice from Drew Tulley would be like taking childcare advice from King Herod.

"His administration ran up the 4 million deficit in the education service, made damaging cuts in services, gave the Borders a 10.1 per cent increase in its council tax, and resigned just before the Miss X case broke. So it is laughable that he is now offering us advice."

Mr Parker said elected members had been given full financial information on a number of occasions, and it was quite in order to vire from budget heading or carry forward money from devolved school management budgets. "In real terms there will not be an underspend, but a break-even budget at the end of the financial year," he claimed. "We have set up an audit committee with external representation as well as a performance review committee to make sure monitoring procedures are more than adequate."

Although virtually all of the underspend will be carried forward, a summary of the financial position shows a projected surplus of 3.535 million for the current year. It includes sums of 1.96 million for education and 443,000 for lifelong care.