Today’s Guest Author is MIKE WARD, one of a number of increasingly-vocal former Whitby Town Councillors who, recognising the ineptitude of Whitby Town Council, resigned over the sheer futility of attempting to move the Council towards a more efficient, representative and value-for-money democratic institution. Mike served on the WTC Finance & General Purposes Committee. He also served for seven years as a Scarborough Borough Councillor and as Chair of Governors to the now-defunct Eskdale School.
He knows whereof he speaks.
Now read his view ‘from the inside’.
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WHITBY TOWN COUNCIL – GOOD, BAD OR INDIFFERENT BUDGETTING?
A “good business budget” involves accurately forecasting both income and expenses, categorizing costs as fixed and variable, incorporating cash flow projections, regularly monitoring spending against the budget, and adjusting as needed to ensure the business stays on track to achieve its financial goals; it should include detailed cost breakdowns, expected profit margins, and contingency funds for unforeseen circumstances.
Without good budgeting, a business will fail – maybe leaving suppliers and/or investors out of pocket.
To spend more than your income in any one year is foolhardy, but to do this year on year is gross mismanagement.
This is of course less true in the public sector where, all too often, Councils are ‘bailed out’ by the government and the taxpayer – i.e. you and me!
Councils, at the Town/Parish level, can simply raise the local Precept with few, if any, restrictions on the percentage increase.
The Town Council Precept is a tax that residents pay to their Town Council to fund the Council’s services to the public. The Precept is the amount of money the Council needs to cover its planned expenses for the upcoming year after subtracting its predicted income. The Precept is usually the main source of income for Town Councils, which don’t receive funding from central government.
Unfortunately, residents are often apathetic to increases and simply accept them without question.
A key question must be ‘what is my Council Tax money used for and am I getting value-for-money’?
What services are provided by Whitby Town Council?
A local Town/Parish Council has few responsibilities – so why do they often cost so much to run?
I spent seven years on Scarborough Borough Council and two years on Whitby Town Council but, for much of the time, it seemed to be a question of banging your head against a brick wall.
Getting proper responses or changes believed necessary seemed to be impossible. Too many members seemed reluctant to change.
Raising questions seems to imply you must be a ‘troublemaker’.
Too many are content to accept what is presented without question, not wishing to ‘rock the boat’.
SBC did very little for Whitby, with most of the monies generated in the Town going to some ill-conceived projects in Scarborough.
Many Councillors did not question their Officers too deeply or at times couldn’t understand the warning signs in the documents presented.
The business plan for the Alpamare Waterpark in Scarborough is a good case in point.
The warning signs were there from the outset.
It took a few years after the attraction opened in 2016, but then it had to be taken over by the local authority after owners Benchmark Leisure Ltd collapsed.
The company owed millions of pounds in repayments from a loan given to them by the former Scarborough Council.
When on Whitby Town Council, serving on the Finance Committee, it astounded me that many of my fellow Councillors could even contemplate a plan to purchase the old Magistrates Court, building without a business plan, proper survey, etc.
Many Councillors at the Parish/Town level are well-intentioned volunteers, but surely all should show simple commonsense and treat Council monies as if they were their own.
Would you entertain an expenditure if it had to come out of your own pocket?
The answer ‘we can raise the Precept’ to cover all eventualities beggars belief.
I resigned over this issue, though that ‘plan’ did eventually end up in the dustbin – as it should have done from the very outset.
I have, however, continued to take an interest in local issues.
Fortunately, living outside the town, I do not pay the Precept – but if I did ………………..!!!!!!!!!!!!
One thing I do remember from my time on the Finance Committee was that the ‘budget’ was scrutinised monthly, so any shortfall was identified quickly and expenditure adjusted accordingly.
The Town Council have just appointed a new Town Clerk, and I wish him well.
He has most certainly inherited a few ‘serious issues’ – others might even be tempted to say a mess.
He may now be ‘on probation’ (six months?) but hopefully will be given the time necessary to sort out the issues he has inherited.
The appointment was made by the Human Resources Committee, well-chaired by a very experienced Councillor and former Mayor, so hopefully no others will be questioning that decision even though some might have had another preferred candidate from the shortlist.
The new Town Clerk needs the support of ALL his Councillors.
It was after all the current Councillors who have allowed some key issues to be compounded.
The Accounts Statements prepared each year do give an overview but the ‘Council Cashbook’ should be more easily accessible to everyone.
Hopefully most Councillors, especially those on the Finance Committee. go through it in detail every month – if not, why not?
After a very cursory look at these Accounts Statements, some assumptions are made below but hopefully a complete assessment can be forthcoming from others with the more detailed knowledge required.
If any assumptions are incorrect, then apologies – but please provide the correct figures.
Over the last two financial years the Council Precept has risen by 22%.
Staff Costs have risen by 24% over the same period.
In very basic terms, the Precept simply covers staff costs with a small surplus.
Salaries, at least at the top, and other overheads in the public sector never cease to amaze.
A short while ago it was announced that the cost for the new headteacher at Whitby School, with on costs, was close to £200,000.
Hopefully, parents and students feel they are getting value-for-money at the new school, and we all see a huge improvement in the educational provision in the town, especially given this outlay.
Apart from Staff Costs two other lines in the WTC’s Accounting Statements provide interesting reading.
In the year ended March 2023, other receipts were £306k but other costs were £334k!
Then, to compound this issue, in March 2024 other receipts were £149k but other costs £235k!!!!!
Overall, it looks as though expenditure exceeded income by some £20k in the year ending March ’23 and by £50k in the year ended March ’24. I hope I have not underestimated these figures!
What will we see in the figures for March ’25?
Has the position improved or, heaven forbid, has it deteriorated still further.
If so, why?
Why haven’t any issues been properly addressed before now?
Has the eye been taken off the ball over the last 30+ months ?
Who is responsible?
Most certainly not the current Clerk.
The previous Town Clerk has departed so current Councillors must carry any can.
In business, heads might roll – but in the public sector………
At the very least, the Finance Committee must mark their own card as ‘must do better’.
Some might even suggest the time has come for them to step aside.
The Council must get to the bottom of the issue and answer the questions how, why and where has the deficit occurred and acknowledge any failings to the Whitby Precept-payers.
Other receipts come from the Museum/Art Gallery, Public Conveniences and Grants etc
What has caused this income to fall?
A simple question which should easily be answered.
Why has the Council allowed expenditure to exceed income?
What unforeseen expenditure has occurred and why wasn’t the Contingency Budget adequate, without the need to deplete the Reserves?
Some of this deficit could possibly be accounted for by the income or lack of it from Public Conveniences, if a Whitby rumour is shown to be true.
Have the cash/card machines in the public toilets failed to register any income?
If so, why wasn’t this issue spotted sooner by the then Town Clerk or the Finance Committee.
Surely any cash/card machines are checked at least monthly and any problems rectified immediately?
Was the Business Plan when taking over the provision of Public Conveniences from SBC flawed from the start?
Were the necessary contracts drawn up correctly?
Do they cost more to run than expected?
Certainly, SBC wanted to rid themselves of the responsibility of loss-making public conveniences and they did so in Whitby, but why does North Yorkshire still run them in Scarborough?
Town Council Reserves are now depleted and a sound budget for 2025/6 is required.
Expenditure against income must be strictly monitored.
To rectify the issues that the Council appears to have caused, there should now be a freeze on salaries and, unfortunately, a possible increase in the Precept of as much as 30-40%!
Alternatively, overheads and any other expenditure should be reduced and/or other income increased.
Maybe the phrase ‘spend a penny’ should now be ‘spend a pound’ with the cost of a visit increased from 50p to £1?
Whatever, any mistakes must now be acknowledged, and the Town Council finances put on a sound footing.
Whitby residents appear to have been badly let down by a few of their fellow residents who act as the guardians of Whitby’s public purse – i.e. our Town Councillors.
It could be that some realise the issues that have arisen and are trying to address things. However, are others simply sticking their heads in the sand?
Could it be that, unfortunately, with the best intentions, some are simply out of their depth?
Residents should be asking challenging questions but above all our Town Councillors must be open and transparent to those who they serve.
They must be readily available to account for their actions.
To seemingly say “We know what we are doing – you don’t – so our decisions should not be questioned” would be too arrogant for words.
Volunteering as a Councillor is not an easy option and is time-consuming.
If Whitby Town Council had far less Committees but at least one full Council Meeting a month to deal with all business matters, would that help to reduce costs?
Why have regular Committee meetings to discuss issues over which the Council has no input or jurisdiction?
The Town Council must focus solely on its remit and get that right.
Would our Town Council be missed if it wasn’t there?
Do local Parish/Town Councils really improve the lives of their residents?
I am sure some might – but others must surely be questioned.
However, if anyone cannot give the time, experience and/or professionalism to the role of a Councillor, they should stand aside and see if others could do better.
There is always a danger of being too set in your ways.
Change is once again needed and needed now.
