Hart Budget Letter to Councillors

Hart Budget - Letter to Councillors, Balance the Budget

Hart Budget Letter to Councillors: Balance the Budget

Please find below the text of a letter sent to all councillors this morning. The letter points our various flaws in the budget and  urges them to reject the proposed budget and ask for a balanced budget instead.

If you want to stop this budget shenanigans:

Please sign and share the petition you can access from the button below.

Stop Shapley Heath to Balance the Budget

You may wish to write to your own ward councillors. Their email addresses can be found from this link. The budget discussion will be livestreamed on YouTube at 7pm tonight from this link.

Hart Budget Letter to Councillors

You Must Not Knowingly Budget for a Deficit

Dear Councillor,

Tonight, you are being asked to sign off on a budget with a deficit. Not only that, the Council is forecasting an even bigger deficit the following year. They even admit there is a structural problem with the finances.

Hart Council budget deficits 2021/22 and 2022/23

Hart Council budget deficits 2021/22 and 2022/23

The budget paper section 15.5 says that you “are under an obligation to produce a balanced budget and must not knowingly budget for a deficit”. This is reason enough to vote against it.

However, buried in the detail of the budget papers one can see that the budget for Homelessness is being cut from ~£166K this year, to £65K next, a cut of over £100K. Moreover, the Grants to voluntary organisations are being cut from £1,234K in FY19/20 to £628K next year.  By contrast, the cost of the “Leadership” team is soaring.

In addition, the Council is proposing to spend £279K on the unnecessary Shapley Heath project. Of this, over £250K is internal resources supervising a spend of £25K on external consultants. Even if you think some spending on Shapley Heath is warranted, such a bloated cost structure is completely indefensible.

The timing of the release of this budget, conveniently the day after it could have been examined by Overview and Scrutiny, piqued my curiosity about what secrets might be buried in the detail. I have found two anomalies which the Council has refused to answer before tonight’s meeting, so I urge you to seek proper answers from the Officers.

The first relates to the mysterious disappearance of employment costs from open-space related service areas.

Mysterious disappearance of employment costs

Mysterious disappearance of employment costs

These service areas also have substantial capital budgets associated with them. My suspicion is that either the Rangers are going to be made redundant (unlikely) or their employment costs are now going to be capitalised. In the past, as the budget clearly shows, they were expensed to the revenue account. You might ask officers to explain this to you. The Government certainly frowns upon such “creative” accounting.

“Capitalisation runs counter to the principles of prudent financial management. It can never permanently solve financial difficulties, but simply postpones the need to deal with them.”

You may recall that inappropriate capitalisation of expenses is what led to the downfall of Worldcom. If I am right, you might well ask why this change has been obscured and why you have not been asked to approve such a change to policy.

The second anomaly is that some elements of the budget do not add up.

For many of the GL Codes, the total in the summary page matches the sum of the detailed build-up of the costs in the service areas (e.g. 45010 – Purchase of Hardware). However, for other GL Codes (notably 10000 – Basic Salary and 44069 – Homelessness Costs), the summary total and the sum of the details do not match. For Basic Salary, the summary total is £4,591,233, yet the sum of the details is only £4,299,929, a difference of ~£291K. Similarly, the summary total of Homelessness is £65K, but the sum of the details is £0, a difference of the whole £65K. You might like to get to the bottom of this and ask that all of the GL Codes are checked for consistency.

It is controversial enough that councillors are being asked to sign off on a budget with a structural deficit. It would be completely untenable to sign off on a budget that did not even meet the most fundamental of acceptance criteria, namely that it was internally consistent and added up.

You might also note that, at the time of writing, over 850 people have signed a petition with the following demands:

The budget should not be approved until the following conditions are met:

    • The overall budget is balanced and doesn’t require £381K from reserves.
    • Spending on unnecessary projects is stopped immediately, including Shapley Heath, which will save at least £279K of the projected deficit.
    • The budget for the “Leadership Team” is cut so that together with other savings, the budget at least balances.
    • Further savings are identified in other non-core areas so that the planned cuts to the Homelessness (GL Code: 44069) and Grants (GL Code: 47010) budgets can at least in part be mitigated.
    • A cross-party committee is established to examine the long-term structural financial deficit and recommend long term solutions. This should be established prior to the start of the new financial year and report by 30 June 2021.

I urge you to reject this budget and request that a balanced budget be produced that properly adds up. Either that or seek some independent advice on the sanctions that can be placed on councillors who knowingly approve a budget with a widening structural deficit with no recovery plan. This letter will be published on the We Heart Hart website.

Shapley Heath Burning Money as Vital Services Cut

Next week the Council will debate the budget for the next financial year. The draft budget for FY2021-22 has been published. It shows that they plan to burn £279K on the Shapley Heath project. Yet at the same time, they are cutting budgets for vital services:

  • The budget for Homelessness will be cut by over £100K compared to the current year
  • They are proposing to cut £600K from the grants given to voluntary organisations compared to pre-Covid spending. In prior years, these grants have typically gone to The Blue Lamp Trust and the YOU Trust that focus on Domestic Abuse, as well as Hart Voluntary Action.
  • The budget for Fleet Pond will be cut from £53K this year to £21K next. This compares to a budget of over £130K in FY19/20.

Meanwhile, the cost of the Leadership team rises from £578K this year (and £720K last year) to £830K next. Overall, they are forecasting a budget deficit of £381K.  Moreover, we can find no budget line to cover regeneration of Fleet or other urban centres. Not even the Civic Quarter regeneration is mentioned.

We need to put a stop to this madness at the ballot box.

Please sign and share the petition you can access from the button below.

Stop Shapley Heath to Balance the Budget

The detail is explained below, but you might be interested in this little 1 minute video.

Shapley Heath Burning Money 2021-22 Budget

The budget for Shapley Heath is buried on page 134 of the budget pack on the link above. It shows a total budget of £279,167.

Shapley Heath Burning Money: Budget 2021-22

Shapley Heath Burning Money: Budget 2021-22

This shows they plan to spend £128K on internal staff costs and a staggering £122K on internal recharges. These recharges include nearly £30K on IT, almost £26K on “Financial Services Recharges” and the best part of £24K on “Corporate Admin Support” charges. A further £18K will be spent on “Building Facilities”.

The Stakeholder Forum papers call for a myriad of studies and reports to be completed by October 2021. For instance, the Homes and Heritage Thematic Group needs to produce reports on Housing Type and Tenure, Urban Design, Heritage and Landscape/Gaps. The Sustainable Transport group has to commission reports on “Modal Shift” and “Transport Nodes”.  However, less than 10% of the budget will be spent on external help to produce all of the reports and studies that will be required. When preparing the Local Plan, most of these types of reports were commissioned externally, as the Council can’t employ all of the specialist skills required. So, they are spending a massive £250K on internal resources to manage an external spend of £25K.

We have no idea how they managed to get consultants to pay them £68K this year, as they have already spent over £27K on PR.

Interestingly, they are assuming that they will receive no further Government support grants for the project. Surely, without Government support the project is dead in the water, because it was struck out of the Local Plan as not required.

Cuts to Vital Services

Despite the largesse on Shapley Heath, they are proposing to cut over £100K from the Homelessness Budget compared to this year and over £600K from the Grants Budget compared to pre-Covid times.

Hart Cuts Budget for Homelessness and Grants for Volunteers

Hart Cuts Budget for Homelessness and Grants for Volunteers

This year, and in previous years, the money has been granted to organisations such as The You Trust and the Blue Lamp Trust that focus on Domestic abuse. In addition, Hart Voluntary Action has been the recipient of significant grants. How can they justify cutting vital services whilst splurging cash on Shapley Heath.

In addition, revenue spending on the much-loved Fleet Pond is being cut. However, there is a significant capital programme planned, funded from S106 payments.

Fleet Pond Budget Reduction

Fleet Pond Budget Reduction

This marks a long term decline in spending from over £169K in 2018/19 to just £21K in 2021/22.

Massive Increase in Leadership Team Costs

Against this backdrop, it’s surprising to see the cost of the Leadership Team rocketing. They are proposing to increase the budget from £578K this year to over £830K next. It might be argued that some of lower costs this year might be down to Covid. However, the budget has still increased by more than £100K over the level in 2019/20.

Hart Leadership Team Increased Spending

Hart Leadership Team Increased Spending

What great leadership. Spending more on yourselves, lots more on a project we don’t need while cutting vital services. We must put an end to this madness at the ballot box.

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Shapley Heath Grant Money Down the Drain

If you were wondering how Hart Council has spent the money it has received to progress the Shapley Heath Garden Village (SHGV) project, most of it has gone down the drain. A quick look at their transparency report shows that most of the money has gone on PR and consultants. The transparency report can be found here.

Shapley Heath Spending Breakdown

Shapley Heath Spending Breakdown

You may recall that the council won a £150K grant from Government to pursue Shapley Heath.  A total of £37,561.30 of this has been spent externally to date. Of this, £27,161.30, or over 70% has gone to Chelgate Limited. This is a PR company who describe themselves as:

Chelgate is an independent, international strategic PR agency, headquartered in London, with branches in Brussels and Bucharest, and a network of associates around the globe.

Chelgate combines great strength in traditional PR, public affairs, crisis management and media relations with an exceptional understanding of social media, digital PR and international PR.

The firm has also built an outstanding reputation for its work in acute issues and crisis management, often dealing with exceptionally sensitive and challenging issues.

We’ve yet to notice the “exceptional” social media output. Perhaps they have focused on crisis management?

The second highest payment went to Mike Allgrove Planning. Mike is an ex-local Government town planner, who describes himself on his LinkedIn page:

I have recently left employment in local government, after 29 years, and set up my own consultancy – Mike Allgrove Planning Ltd. I am available for contract roles dealing local and strategic planning policy, interim management or major site implementation. I am currently engaged as a consultant for the Partnership for South Hampshire. I will be managing the collation of the evidence base to facilitate a new Joint Strategy under a statement of common ground that has been agreed by the constituent local authorities.

I have also recently completed short term commissions for a consortium of North Hampshire authorities and the Chichester Harbour Conservancy.

Taylor & Garner is the company owned and run by Lord Taylor of Goss Moor. Lord Taylor has been giving presentations to councillors and to the Stakeholder and Landowner forums.

In short, nothing tangible has been produced with this money. No schematic designs, no viability studies, no infrastructure reports and no sustainability assessment. It’s all just PR fluff.

Shapley Heath Staff diverted to Covid Response

It is difficult to see why they needed to spend thousands on PR for Shapley Heath when next to no work was being carried out on the project. The grant money has also been used to hire staff to work on the project. However, it was confirmed at O&S on 16 February that the staff hired to work on Shapley Heath were diverted to the Covid response.

Perhaps they took their eye off the ball and didn’t properly control costs. The Shapley Heath grant money is going down the drain.

 

 

 

Hart Council Takes Over Shapley Heath Stakeholder Forum

Hart Takeover of Shapley Heath Stakeholder Forum

Hart Council Takes Over Shapley Heath Stakeholder Forum

In an astonishing move, Hart Council is attempting to take over the Stakeholder Forum (SHSF) it has set up to seek advice from the community about the Shapley Heath project. The Council hosted the kick-off meeting and then tightly controlled each of the Thematic Group meetings. The end result is that 4 out of the 10 places on the Stakeholder Forum Steering Committee are now held by Hart Council Officers. In addition, the Hart Project Manager, team members and the joint Chief Executive attend the meetings, giving Hart overall control.

Hart Council takes four of the 10 places on the Shapley Heath Stakeholder Forum Steering Committee

Hart Council takes four of the 10 places on the Shapley Heath Stakeholder Forum Steering Committee

Hart Breaks its Own Rules

In doing this, Hart has effectively broken its own rules governing the Stakeholder Forum. The Terms of Reference (ToR) list the core functions of the Stakeholder Forum.

Shapley Heath Stakeholder Forum Core Functions

Shapley Heath Stakeholder Forum Core Functions

These make clear that it is supposed to be a space for community representatives to feedback to the Council, not for the Council to effectively represent itself. We don’t have accurate figures to hand, but some of the Thematic Groups have many Hart Officers as members. This effectively drowns out the very voices from the local community that the Forum was supposed to listen to. The ToR then goes on to list the groups that will be invited to be members of the SHSF. As one might expect, Hart District Council is notable by its absence, except for the Project Manager.

Shapley Heath Stakeholder Forum Membership

Shapley Heath Stakeholder Forum Membership

The membership section then states that organisations may only be represented by one person each:

Hart Council Takes Over Shapley Heath

Shapley Heath Stakeholder Forum Membership Rules

So, to summarise, Hart Officers shouldn’t be there in the first place. Even if they were allowed as members, there should be only one officer in the whole Forum. It’s almost as if they’re afraid of local community opinion, especially as Hart’s finances are in trouble.

Paper Thin Justification

As you might expect, a number of people and groups have expressed their concern at this development. To our knowledge, nobody has received a proper answer. They have been referred to a new FAQ on the website that says:

Why are Council Officers participating in the Stakeholders Forum Thematic Groups and the Steering Group?

The Garden Community project is a council run project and therefore it is entirely appropriate that council officers sit on the Thematic Groups and the Steering Group as key stakeholders and technical experts. The Council operates within multiple disciplines and employs experts within these disciplines accordingly, many of whom have significant experience. To exclude these experts from the Thematic Groups and the Steering Group would be perverse and seriously limit the collective expertise of these groups. As the Council does and will continue to work within its community, its presence as stakeholders accords with the spirit of the project. As the Cabinet are the ultimate decision-making bodies for this project, no conflict of interest arises. The Stakeholder Forum Terms of Reference confirms that “The Stakeholder Forum, (Steering Committee and Thematic Groups), will be supported by members of the Garden Community Project Team as appropriate.

Many people have suggested that Hart Officers would be welcomed as subject matter experts when invited by the Chair of each Thematic Group. That would be an appropriate role. We will keep readers posted on further developments.

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Hart Council plans secret cuts as it accelerates Shapley Heath

 

It has emerged that Hart Council is planning secret cuts as it accelerates the plans for Shapley Heath Garden Community. They are spending money they don’t have on something we don’t need, whilst secretly planning cuts elsewhere.

Hart Council Plans Secret Cuts

The plans for cuts emerged in a budget paper considered by Overview and Scrutiny Committee. They are facing pressures from the Spending Review, changes to New Homes Bonus and Business Rates. In addition, their commercialisation plans don’t seem to be working. So, they have produced a confidential appendix discussing how and when they are going to make savings.

Hart Council plans secret cuts

Hart Council plans secret cuts

The context is that the council is forecasting that it will overspend by £972K in the current financial year. Reductions in revenue and increases in costs caused by the Covid-19 pandemic have damaged their finances this year.

Hart Council Budget deficit 2020-21

Hart Council Budget deficit 2020-21

In addition, it is forecasting that spending will exceed revenue by £381K in 2021/22 and a further £1,081K in 2022/23. The pressures highlighted above will take their toll in the coming years.

Hart Council budget deficits 2021/22 and 2022/23

Hart Council budget deficits 2021/22 and 2022/23

This gives a total shortfall of £2.4m over three years.

Shapley Heath Garden Community Plans Accelerate

As they wrestle with the blackhole in council finances, they are pressing ahead, spending money they don’t have on the unnecessary Shapley Heath Garden Community.  The Stakeholder Forum was treated to a presentation by Lord Taylor of Goss Moor on January 14th. We understand that the Landowners Forum will receive a similar presentation on February 11th.

The “Thematic Groups” that form part of the Stakeholder Forum will meet later this month and probably into February.

Of course, it is well documented that Shapley Heath is totally unnecessary to meet our housing needs.

It does seem rather odd that they are spending money they don’t have on something we don’t need.  We do hope they don’t sacrifice core services on the altar of Shapley Heath Garden Community.

Hart to waste £406K on Shapley Heath Garden Village bid

Hart bid to waste another £406K on Shapley Heath Garden Village

Hart to waste another £406K on Shapley Heath Garden Village bid

Hart District Council have submitted a bid for an extra £406K to fund the unnecessary Shapley Heath Garden Village project. This comes hot on the heels of the £150K they won from the Government last year.

They want to spend the £406K as follows:

  • £151K on new staff that haven’t been recruited yet. These new members will be a Project Support Officer, a Community Engagement Officer and a Land Manager
  • £180K on “bespoke strategy reports”
  • £60K on Engagement and Communication
  • £15K on a high-level viability assessment

The bid document can be found here and ore details on their plans can be found here. They have decided not to publish the appendices to describe the upcoming milestones, housing trajectory and project plan. This means that we cannot see the timeline for what they are supposed to be delivering and therefore cannot hold them to account.

However, we can see that they haven’t achieved anything with the money they have received so far. Of the £150K they received, they have spent £46,637 on consultation and engagement. This appears to have been spent on a survey on the impact of Covid-19, branding advice and a presentation from Lord Taylor of Goss Moor. The rest of the money remains unspent. We know that Covid has been highly disruptive, but that only covers half the time since the money was awarded. The baseline studies that are being funded by the developers haven’t been delivered either.

In short, as Churchill might have said, never in the field of planning history has so little been achieved by so many with so much.

We can only hope that the Government sees through the track record of failure and decides to stop throwing good money after bad.

Shapley Heath Schedule

As a reminder, Hart received £150K of funding for Shapley Heath Garden Village back in July 2019. According to the schedule they submitted as part of their bid, by now they should have produced a development plan document for the new town by now and be preparing to adopt it:

Shapley Heath Garden Village Winchfield New Town Development Schedule

Shapley Heath Winchfield New Town Development Schedule

Council Adopts Hart Local Plan

Council Adopts Hart Local Plan

Council Adopts Hart Local Plan

It’s been a long time coming, but Hart Council has finally adopted the Hart Local Plan. This took place at their first virtual meeting that happened at 7pm on 30 April 2020.

The meeting was broadcast on Hart’s live streaming page: https://www.facebook.com/HDCLiveStreaming/

However, these videos are often removed shortly after broadcast.  So we have downloaded it, and uploaded it to YouTube for posterity.

We can all sleep relatively easily now that we have a Local Plan. This plan has had Policy SS3 removed from it. However, we need to remain vigilant that the Council doesn’t seek to bring back the unnecessary Shapley Heath Garden Village at a later point.

 

Hart #Covid19 funding black hole shrinks to “only” £628K

Hart #Covid19 funding black hole shrinks to £628K

Hart #Covid19 funding black hole shrinks to £628K

The Government has awarded Hart more Covid19 funding that shrinks its expected deficit to from the pandemic to “only” £628K. This is welcome news as only last week the deficit stood at £1.6m.

However, £628K still represents about 6% of the council’s budget. We are left wondering which project could be cancelled to make good most of this shortfall? ?

Stop Shapley Heath

Stopping Shapley Heath could help close Hart’s Covid19 funding gap

Hart #Covid19 funding black hole details

The council have circulated their estimate of the loss of income and extra costs they are facing as a result of the coronavirus pandemic,

Hart Council covid19 funding hit

Hart Council Covid19 funding hit

This amounts to over £1.6m. The Government have announced they will provide £987K of Covid19 funding to Hart.

Hampshire Councils covid19 funding

Hampshire Councils #Covid19 funding

But this still leaves a £628K funding gap, on top of the “perfect storm” they faced in their finances even before the pandemic hit.

It will be interesting to see if this subject comes up at the “virtual” council meeting to adopt the Local Plan. The live stream can be found here.

Covid19 blows £1.6m hole in Hart finances

Covid19 blows £1.6m hole in Hart finances #Covid19

Covid19 blows £1.6m hole in Hart finances

We do hope everyone is staying safe from the coronavirus and coping well with the lockdown. Hopefully, the disease will be brought under control soon and we can start to get back to normal. However, Covid19 has blown a big hole in Hart’s finances.

Amongst other things, we understand that Covid19 has reduced Hart’s car parking revenue by around £240K. The Council expect to lose £140K of council tax and business rates. They also expect to lose £360K from planning income and £390K from the leisure centre. Of course, they still have to pay for the leisure centre loans. They have also incurred technology and staff costs of over £200K in providing the Hart response Hub.

So far, they have received £24K from the Government to cover these costs and expect more to come, but don’t expect that it will bridge the £1.6m funding gap. They expect to have to bridge any remaining gap from reserves.

There is some good news. So far, they have distributed £6.5m under the Government’s Small Business Grant Scheme. This means that 65% of all businesses that have applied for the grant have now been paid. They expect to pay the balance by the end of April. A number of businesses have not applied for the grant. If you, or any of your friends think you might be eligible, visit Hart’s website to check eligibility and apply: https://www.hart.gov.uk/covid-19-information-for-businesses.

With most construction sites being shutdown, and one might imagine that the housing market will be subdued for some time, they will probably lose some New Homes bonus too.

All this comes on top of the “perfect storm” facing Hart’s finances that we reported on back in January. We hesitate to be political at this difficult time, but surely they must reexamine whether they should be spending  £650K on Shapley Heath Garden Village at the moment. We have shown how the project is not required. Now more than ever, it is likely housing demand is going to fall as people have less money in their pockets. The Inspector said there’s no evidence it’s viable or deliverable. It will drive up the housing target and be made irrelevant by Grazeley. Not to mention the unnecessary 1m tonnes of CO2 that will be emitted during construction. This is a white elephant project that we cannot afford.

Stay well and keep healthy everyone.

Developer fox in charge of the Shapley Heath hen house

Hart Council has held the first meeting of the Shapley Heath “Opportunity” Board. It was a meeting that could be attended by the public, but they didn’t publicise it, so nobody turned up. But, the papers and the minutes have been published, so we can get a sense of what went on. Perhaps the most disturbing point is that the developers will procure and fund the production of all of the baseline studies.

As the promoters/developers with significant land interest, Lightwood Strategic and L&Q Estates, have confirmed that, subject to Board approval, they will procure and fund all of the baseline surveys.

This is putting the developer fox in charge of the Shapley Heath hen house. What could possibly go wrong? The list of baseline documents is as follows:

Developer fox in charge of Shapley Heath henhouse baseline evidence

Shapley Heath baseline evidence

Can we really trust the developers to produce objective, impartial assessments on these issues? What sort of documents are they going  too produce, when much of this work has been done already? And much of it persuaded the Inspector to throw Shapley Heath/Policy SS3 out of the Local Plan. Winchfield Parish Council produced a lot of this evidence for the Local Plan examination. Their evidence covered flood risk, heritage assets, ecology, green infrastructure and agricultural land. It also looked at the constraints from the M3, the railway electricity pylons and the high pressure gas main. The constraints were handily summarised in a single diagram.

Figure 6 Winchfield Summary of Key Findings

Figure 6 Winchfield Summary of Key Findings

 

The council has committed to fund a number of strategic reports:

Developer fox in charge of Shapley Heath henhouse - Shapley Heath strategy reports

Shapley Heath strategy reports

So far, they don’t appear to have pulled together a bottom-up estimate of the costs of these reports. But they are going to spend nearly two years producing them all.

Developer fox in charge of Shapley Heath henhouse - Shapley Heath Phases and Timeline

Shapley Heath Phases and Timeline

Sloppy Financial Control

But the problems don’t stop there. It is clear that the financial control over the project is sloppy at best. Previously, they had budgeted £70K for a “full time dedicated senior post” and a part time administrator.

 

£70K for 1 full time and 1 part time resource

But, now they have cut the budget to £65K and hope to hire three people. If you pay peanuts, you know what you can expect.

Developer fox in charge of Shapley Heath henhouse. Shapley Heath Sloppy Financial Control

Shapley Heath Sloppy Financial Control

They have now signed off funding for four people, when the original request was for 1.5 FTEs. Further, they are funding 3 of these full time positions from a one-off grant from Government. What happens to these people when the money runs out? We remind readers that Hart finances are facing a “perfect storm”. This is not a time to be creating unfunded liabilities. Similarly, they are paying for the project manager from part of the £500K being transferred from reserves, which again is a one-off source of funding.

This looks like a project that is out of control. The council are throwing our hard-earned money at a project that is not required, at a time when their finances are severely constrained.