Lambeth Lib Dems put council on the brink of bankruptcy
February 2006

Lib Dems have left the council several hundred thousand pounds in deficit.

Lambeth’s Lib Dem Council have been told by their own director of Finance that their budget is "Not...prudent" and will lead to a much higher tax rise next year. The Lib Dems have left the council on the brink of bankruptcy following a series of blunders by Council leaders Peter Truesdale and Ashley Lumsden.

While the Council’s auditor says there should be £15 million in the bank to cope with unexpected spending, the Lib Dems have left the council several hundred thousand pounds in deficit.

Over the last four years Lambeth’s council tax has increased by 40%, from £810 to £1130. Despite this astronomical rise the council is still in financial crisis, reflecting four years of mismanagement.

The Lib Dems have wasted an incredible amount of money over recent years, including: £26 million on an unnecessary new office block in Vauxhall, £27 million windfall squandered on pet projects rather than bolstering the finances, £12 million lost this financial year because of a failure to properly account for debt repayments and £3 million lost in a housing fraud.

The crisis deepened earlier this month when £21.1 million was lost because of an accounting mistake which the Lib Dems failed to find during the eight years they ran the council since 1994.

Cllr Dan Sabbagh, Labour’s Lead Finance Spokesperson said:

“People should be in no doubt about the financial disaster that Lambeth has become under the Liberal Democrats. They have squandered huge government investment and massive council tax hikes without improving services. Lambeth is still the second worst council in London”

“Due to the bungling incompetence of Lib Dem councillors, the council is on the brink of bankruptcy. I think the people of Lambeth will make their judgement on their performance in the May Local Elections.”

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