Many people will be attending Colchester Town Hall tonight to hear the next episode in the cabinet’s ridiculous squabble over whether the £130million investment in Colchester’s schools should be scuppered by their refusal to exchange a parcel of land hardly bigger than a decent billiards table.

However, I urge people attending the meeting to remain for the equally important second item, namely next year’s council budget.

In September, the Liberal-led cabinet predicted an alarming budget deficit of £400,000 for 2010-11. Under their continuing mismanagement, the gap has now escalated to an eye-watering £1.7million in just three months.

They have failed to achieve £260,000 of their promised cost savings.

The cabinet recklessly over-estimated by £750,000 the interest that would be earned from the council’s surplus funds.

Despite assurances that their dud investment of £4million in an Icelandic bank would be repaid, they are now proposing to write off £614,000 of it in next year’s budget, which alone is equivalent to a six per cent rise in borough council tax.

When they gained control of the council some 18 months ago, their first, intemperate action was to sack two of the council’s main contractors. Despite assuring the people of Colchester that they had a “cast-iron” legal case against Inspace, the Gazette reported over £6million was awarded against the council.

Now history is to repeat itself. The second sacked contractor, Banner Holdings, is suing the council for wrongful termination. So a further £500,000 is being added to pay the council’s lawyers, half in next year’s budget, equivalent to a further 2.5 per cent on council tax.

In my opinion, this is no way to manage the council’s business. But I suggest people judge for themselves by remaining to hear this debate.

Dennis Willetts
Deputy leader
Conservative Group
Colchester Council