Double your Uttlesford Council Tax bill? R4U unwilling to support Tory UDC budget that exposes residents to £100m property speculation risk

Residents for Uttlesford (R4U) has announced that it does not support the £100m loan that UDC intends to take out for property speculation as part of its 2019 budget because it exposes residents to an unacceptable financial risk that could more than double future council tax bills.

Paul Fairhurst (R4U) Paul Fairhurst (R4U)

R4U’s Cllr Paul Fairhurst, an R4U district councillor, said “UDC’s 2018 accounts failed to note a nasty surprise that has been hidden from residents, and we don’t like it. UDC borrowed £50m to buy a stake in Chesterford Research Park. The value of that property has been independently audited and has already dropped by £2.7 million. When other costs are included the accounts show a total loss so far of £3.25 million. Now in the 2019 budget UDC is looking to do it all over again, and this time wants to borrow £100m to invest in more commercial property speculation.”

R4U’s Paul Fairhurst continued “UDC is a provider of public services not a property speculator and it has shown it makes risky choices by ignoring the expert advice it was given. It exposes the council and residents to huge financial losses as has happened Northampton. The 2018 government inspection into the Conservative-run Northamptonshire Council accused leaders of “weak budgetary control” after they exposed residents to £70m losses, forcing tax hikes and service cuts. If the same were to happen in Uttlesford, residents could see the average council tax bill more than double to an eye-watering £4,400 per year.”

Cllr Paul Fairhurst, who is also a Saffron Walden Town Councillor, added “R4U has been prudent with the budget it controls at Saffron Walden Town Council. Four years ago it inherited a £1m financial black hole left by the departing Tories, who also dumped a load of services on it from UDC for it to run. We put in place a 5-year financial plan to rebuild the town’s finances. Strong governance has fixed the finances ahead of plan, meaning that Saffron Walden has been able to invest in many new services and facilities for residents. Because of this we’ve been able to cap the 2019 town tax increase to 1.5%, half that of UDC’s.”

Paul Fairhurst concluded “But the way the current UDC administration has managed its current investment portfolio is risky and unacceptable. They are gambling with residents’ money. For us to support UDC’s £100m loan, we’d need to see much stricter controls, an independent investment committee, and a properly balanced portfolio of investments. During the debate at the full council meeting we got the Tories to concede there was a problem as they separated out the £100m loan item from the main budget vote. It was approved by the Conservative majority, but after 2 years we have now forced their leader Howard Rolfe to commit to councillors to bring back a proper governance proposal for approval.”

About Residents for Uttlesford

Residents for Uttlesford (R4U) is the local independent party of north-west Essex towns and villages. Formed in 2014 by a number of residents’ groups, the party believes that on local issues residents should decide, not Westminster parties.

R4U leads Uttlesford District Council (UDC). It is the fastest growing local political movement in its district. In its first election in 2015 it became the second party at UDC. In 2017 it solidified its position with a further by-election gain with 60% of the vote. In the May 2019 Local Elections R4U gained majority control of UDC winning two-thirds of the seats. The result delivered the biggest loss of seats by any UK Conservative controlled council in the UK.

R4U’s success has been based on the desire to give local people a voice and implement long range strategic and sustainable plans for their area.

R4U also leads Saffron Walden Town Council, where under its stewardship the council has rebuilt finances, invested in community assets, and won multiple awards, including the best run council in Essex. It is a minority party on Great Dunmow Town Council.

Residents for Uttlesford can be found on the web at www.residents4u.org.

2 thoughts on “Double your Uttlesford Council Tax bill? R4U unwilling to support Tory UDC budget that exposes residents to £100m property speculation risk

  1. S San Vicente

    In Conservative UCDs words we had a very successful business man (not successful but very successful) from Hatfield Broadoak as Director of this company. As a resident i should like to hear his statement of what went wrong. He is currently MD of s small consultancy but perhaps he runs over more successful businesses. I cannot see this from Companues House.

    How will the R4U party run the finances. Will they ensure greater transparency?

    • R4U Post author

      If R4U is elected to lead UDC we will implement better governance and audit oversight. We have pledged to make the council more transparent. We will adopt accounting practices that are standard in the industry. For UDC’s property investment arm, we will implement an investment board that adopts industry best-practice and limits risk exposure.

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