New leader meets with opposition Tories to discuss council investments

THE new leader of Warrington Borough Council has met with his Tory opposition counterpart to discuss council investments following news of the possible sale of a property development in Birmingham.

Warrington Borough Council’s (WBC) new Leader Cllr Hans Mundry and new Cabinet Member for Corporate Finance, Cllr Denis Matthews, met with Conservative Group Leader Cllr Nigel Balding and Cllr Ken Critchley yesterday, Thursday, following the announcement of the possible sale of the Mailbox development in Birmingham.

The borough council used cash reserves to purchase bonds in the successful mixed-use Mailbox development in 2021 when interest rates were low and following comprehensive due diligence.
The Mailbox has a high occupancy rate of more than 95% with tenants such as high-end brand Harvey Nichols and modern cinema chain Everyman.

Cllr Mundry says many local authorities invest cash reserves as bonds in funds as a method of improving overall revenue, they do so through large property funds such as the CCLA (Churches, Charities and Local Authorities). Warrington Borough Council did not borrow to invest in the Mailbox bonds.
Since 2010 local authorities across the country have faced significant cuts to their budgets and services as a result of Conservative Government austerity.
Councils such as Warrington were encouraged to become more commercial by the Government, investing in property and businesses to achieve policy objectives and to generate additional revenue to offset cuts to their budgets.
He says more than 70% of the Council’s revenue budget is spent on vulnerable adults and children’s services such as adult social care and children in care services.
WBC’s investments provide an annual surplus of more than £20 million after all interest payments and other costs have been deducted, the revenue generated supports the delivery of services such as adult social care and children’s services.
Cllr M undry said: “Budget and investment information is provided to councillors in a clear, unbiased, open, transparent, and honest way. Investments the Council makes are open to regular scrutiny and oversight at committee meetings, Cabinet meetings and at Full Council.
“All Councillors are provided with routine training opportunities and officers are available to Councillors should they wish to clarify any concerns or have additional questions they wish to ask.
“In addition to the of scrutiny and oversight meetings, the Treasury Advisory Panel was established to receive detailed reports on current investments undertaken by WBC and to consider new or future proposals. All political groups have been invited to attend these meetings; The Conservative Group has chosen not to attend these meetings for two years.”

Councillor Denis Matthews, Cabinet Member for Corporate Finance said: “Both I and the Labour Group are committed to open and transparent conduct of our town’s finances.
“The Council provides full reports and regular updates, councillors are also able to access the support of officers should they wish to ask further questions.
“Unfortunately, the Conservative Group do not attend all of the meetings available to them, and in the last two years they have not attended the specially created Treasury Advisory Panel which receives reports on our investments.
“On Thursday, I met with Conservative Group Leader, Councillor Balding and Councillor Critchley to discuss WBC’s investments.
“Recent press coverage has drawn attention to our investment and the possible sale of the ‘Mailbox’, a successful well-let, mixed-use development. The development continues to provide a revenue stream to the Council after all costs have been paid.
“I can assure residents that Warrington’s finances are stable and balanced.
“Overall, our investment portfolio of things such as solar farms and property generates more than £20million in revenue, that is a surplus after all costs and interest payments have been paid.
“That is more than £20 million, going directly into the services residents rely on such as adult social care and children’s services.
“Since 2010 the Conservative Government has cut council budgets up and down the country, forcing them to make unimaginable decisions. 13 Years of brutal Conservative austerity has been mitigated by our investment strategy, protecting our most vulnerable residents.
“I make no apology for our commitment to protect our residents and communities in Warrington.
“We continue our call on Cllr Balding and the Conservatives to attend all future meetings, including the Treasury Advisory Panel.
“Additionally, I have asked him to write to the Conservative Chancellor, calling on the Government to provide a fairer funding settlement to all local authorities improving on their inadequate and piecemeal offer earlier this week.”