The Tower Hamlets Conservative Group is proposing an amendment urging Tower Hamlets Council spend some of its reserves because these reserves are declining in value.
The Council has substantial reserves which are currently earning less interest than is lost to inflation, which means that over time the reserves are declining in value.
Plainly put if the money is not spent it will just disappear.
Projected Losses in Council Reserves 2018-2020
|Financial Year ->||31-03-2018||31-03-2019||31-03-2020|
|Total value of reserves||£515.7m||£492.4m||£414.4m|
|Loss in Reserves value due to inflation||-£6.8m||-£10.1m||-£5.4m|
The Council will meet to approve the annual budget for the next financial year tonight at the town hall.
The Conservative motion states that ‘this Council believes it is better to be building new schools, GP surgeries, playgrounds, leisure facilities, community centres, youth centres then having money sitting in the bank losing value.’
You can see the Conservative Group Budget Amendment here (PDF).
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