The Rushden Echo and Argus, 29th March, 1935, transcribed by Gill Hollis
1/6 On The Rate: Budget Night Shock
Estimates Exceeded and £4,000 Taken Out of the Balances
Reasons: Adjustment of Housing Accounts and Water Board Call
Mr. Roe’s Condemnation - “Anything They Want Is Simply Passed!”
The general rate for Rushden jumped from 10s. 6d. to 12s. in the £, and the amount to be exacted from £34,335 to £39,456, at the Council’s “Budget” meeting on Wednesday.
This sudden advance, after a six-year period in which the rate had fallen steadily from 13s. 4d. to 10s. 6d., needed special explanation, and Mr. W. E. Capon, Chairman of the Finance Committee, gave a very thorough survey of the position. He showed that the Housing Committee had taken £1,242 and the Water Board £970 more than was estimated, and that a balance into which previous “Chancellors” had dipped for some years had dwindled from £10,000 to £500.
“Anything the Council want is simply passed,” complained Mr. Roe, who in the course of scathing criticisms declared that the tradespeople having had their assessments increased last year, could not afford to pay still more.
The “Budget” was presented by Mr. W. E. Capon, Chairman of the Finance Committee who spoke for half-an-hour.
Twelve months ago, said Mr. Capon, it was estimated that the total expenses on all counts would be £44,127 and that the income, exclusive of rates and Government grant in respect of de-rating, would be £26,083. Deducting the Government de-rating grant of £10,029, a sum of £8,015 was left. A credit of £2,021 was given from balances in hand, leaving £5,991 (equivalent to a rate of 1s. 10.3d.) to be raised for Council purposes
It was further estimated that precepting authorities would make calls on a rate of 8s. 7.7d., the total rate thus being made up to 10s. 6d. The actual calls, however, exceeded expectations by £1,488, the amounts paid being: (County Council £27,453 (increase £351), Wellingborough Assessment Committee £240 (increase £72), Water Board £1,170 (increase £970), discount for prompt payment of rates £525 (increase £95).
An Extra £1,908
The actual expenditure for the year was £47,070, against the estimated sum of £44,127, and the income (including the Exchequer grant) was £37,994, leaving a net actual expenditure of £9,076. Towards meeting this it had been agreed to take £2,021 from balances, but the sum actually taken from balances was £4,129 a difference of £1,908. This difference was accounted for by the increase of £970 on the Water Board precept, and by the fact that the Housing Committee, although budgeting for £919, actually required £2,161 an increase of £1,242. The two increases came to £2,212, but other committees saved £304, and this gave the £1,908 mentioned as the extra amount taken from balances.
Mr. Capon gave a detailed explanation of the Housing Committee excess. It appeared that the Council were required to set aside half the Government grant on houses erected under the 1924 Act as a sinking fund out of which the annual charges were met, the balance being carried forward from the Government grant period. The rent calculations were made on a 60 years basis, but the Government grant was only for 40 years. Further, the amount of estimated actual expenditure on repairs was budgeted for, whereas the Act called for 25 per cent. of net rent charges to be set aside as a special fund out of which repairs expenditure was payable.
The balance in hand, Mr. Capon said, was only £500, a smaller figure than they had had for many years, and really approaching the danger point.
The Cruse of Oil
Twelve months ago Mr. Allebone referred to the fact that the 1932-3 balance was nearly £10,000 and the 1933-4 balance practically £7,000, but now they were left with a few hundred.
“We may all have heard of the cruse of oil that failed not,” said Mr. Capon, “but here we are dealing with concrete things, and Council cash balances, like Sywell, dry up. We are therefore starting off, as from April 1 a good date! - with a small amount of cash in hand, but with wonderful assets in kind, and an abundance of goodwill, determination and endeavour.”
Mr. Capon observed that it was the Council’s 44th annual meeting. In the first year (1891-2) the town’s rateable value was £17,482, the rate 2s., and the amount produced £1,494. To-day the rateable value was £70,400, the rate 10s. 6d. and the product £34,335. It would be observed that while the rateable value was practically four times as great, the amount produced was 23 times greater.
“It is always a pleasure,” continued Mr. Capon, “to be associated with an organisation of any kind that is out to do its best for the community it serves, and still more gratifying when that body, realising its responsibilities, seeks to secure the desired end in the best possible way at a minimum of expense, whilst setting out for a maximum of benefit and service.
“There are larger as well as smaller urban areas, but a Council more efficiently or more economically run I venture to say would be difficult to find.
Praise of Ratepayers
“Having said that, I would like to pay tribute to the ratepayers of the town for their hearty co-operation in this matter. It is quite obvious that no public body can satisfactorily discharge its duties, however eager it may be, unless there be an adequate response from those it seeks to serve, and it is a very pleasing feature of our committee work to have facts and figures put before us from time to time of the promptness with which the rates are paid. When you recall the fact that there are 2,100 direct ratepayers in the town, and that two-thirds of the rates in invariably collected within a month of the demand, there is a great deal to be said for the assistance given to the council in the prosecution of its task.
“For a number of years the Council has pursued a steady policy of improving the approaches to the town, by providing foot-paths, beautifying its roads and streets by planting trees, and laying out its housing estates with good, wide roads, all with a desire to lend dignity to the town. It has sought, too, by not only acquiring open spaces and parks, but also the improvement thereof, to make the town really worthy of the name of Rushden and attractive to visitors.
“The question of lighting our highways and of making the roads and streets safer for traffic as well as pedestrians and children in particular, is a very big one, none more urgent. In this the Council are looking and planning ahead rather than to the immediate future.
“We read a lot in our papers about the development of new housing estates and expansion of urban areas, but I think it is doubtful whether more progress has been made by any other town the size of our own, bearing in mind the development is widespread geographically. Newton-road, Court Estate, Irchester-road, St. Crispin the vista of the St. Margaret’s, St. Mary’s and Park-avenues stretching away to the Knuston Spinneys with a link to join up with Wymington-road and Irchester-road may be nearer an accomplished fact than we think. In this connection there is the question of water, sewerage and other public services. All have to come in review, and whilst considerable thought has already been given to these schemes, the maturity of them belongs to the future.
Cost of Housing
“I shall have occasion to refer to the housing estates a little later on; meanwhile I would like to point out that we have 734 houses already occupied and in the course of erection. Of these 693 are a direct charge upon the rates of the town, and indeed are equivalent to a 9d. rate, requiring £2,200 per annum. In addition to this 197 houses have been built by owner-occupiers, on which a subsidy varying from £70 to £100 was paid. This is a further charge on the Council amounting to 1d. rate or £270 per annum.
“For the development of all these schemes and to make them 100 per cent. effective, money is and will be needed, and whilst the outlay may be in many instances regarded as an investment rather than an expenditure, or as a productive debt rather than an unproductive one, yet there is a liability attached to them all, and one that has to be faced year by year.
“When it is recalled that these developments, the public services, and hosts of other things incidental to the running of a town are being carried on, and what is more, carried on in a way which is a credit to all concerned, the marvel is that so much is done and accomplished with the comparatively small amount of money at the Council’s disposal.
Large Commitments
“To come to the question of finances for the ensuing year, it has not been an easy matter to prepare the accounts, primarily on account of our large commitments which I have already outlined, such as public health, social services, housing, partly too, on account of our Council’s endeavour to keep abreast of the needs of the times. Unfortunately, as in other walks of life, money, though it may be wisely spent, only goes so far. Let me say a word here of thanks to the executive staff of the Council for their painstaking and exhaustive examination of the accounts in every detail, which I shall ask you to consider with me in a moment.
“This is our first year under the new regime of housing our own Clerk and Accountant, and I am quite sure the step taken 12 months ago has more than justified itself.
“The Finance Committee have for some months been looking into the loans position, and are using the opportunity afforded by the present cheap rate of money to effect savings in the way of loan interest. In the period under review not much benefit will be derived, but considerable savings will result in 1936-7. Loans amounting approximately to £95,000 are being repaid and further sums borrowed at 3¼ per cent interest as against 4 per cent now ruling. This will effect a saving in the first year of approximately £700, and in subsequent years slightly less according to the instalments of principal repaid. The reason that very little will accrue next year is that six months’ notice has to be given, and there are naturally certain legal charges which have to be met.
Debt of £367,000
“At the commencement of our financial year (that is to-day) our productive debt (revenue-earning schemes such as Cemetery, bath and housing) is £343,688, and the non-productive debt which entails dead weight charges on rates (street improvements, sewage disposal, public conveniences, parks, etc.) is £23,555, a total of £367,143. The net debt per head of population is £25 6s. 5d. The rateable value stands to-day at £70,452, an increase of £1,410 on the year, and a penny rate is estimated to produce £274.”
The year’s expenses were estimated at £50,666, less income of £30,822, leaving a net expenditure of £39,456.
The estimates of the various committees, with the actual expenditure last year (shown in brackets) were: Plans, Highways and Lighting £6,895 (£6,763); Health and Sanitary £4,770 (£4,648); Library £410 (£370); Parks, Baths and Hall £2,417 (£2337); Finance and Estates £2,822 (£2,836), this estimate including £274 for the Jubilee celebrations; Housing £2,470 (£2,161); total £19,784 (£19,105).
The Housing Committee were calling for a rate of 9d. against 3.4d. last year, and the other committees called for a rate of 5s. 3.2d. against 5s. 3.7d. last year a halfpenny less.
Aggregate Levy
This year the estimated Council expenses were £19,784. The Exchequer grant would be £10,080, leaving £9,704, and it was proposed to take £350 from balances, the net Council expenditure becoming £9,354. They had also to provide £600 for discounts on rates, £27,606 for the County Council precept, £96 for the Wellingborough Assessment Committee and £1,800 for the Water Board. The aggregate of the rate it was proposed to levy was £39,456.
Examining the housing position, Mr. Capon said: “I made reference earlier on to the houses which have been erected over a period of years. There are 41 in Kings-road under the Act of 1890, and these happily are now a source of income to the Council. In the Newton-road area are 98 under the act of 1919, the main clause of which is that local authorities were required to provide houses and to levy annually towards the cost a rate of 1d. In the £, the balance being found by the Treasury. Then 197 subsidies were granted under the Act of 1923 to promote private enterprise. This is a cost to the ratepayers at large of approximately £270 per annum.
“There are 425 houses in our Irchester-road Estate under the Act of 1924, known as the Wheatley Act, and the Exchequer contribution is £9 per annum for 40 years, the annual charge to our Council being £1,673, or the equivalent of a 6d. rate. Erections, too, are proceeding apace in Highfield-road under the Act of 1925 and the Slum Clearance Scheme of 1930, the number of houses concerned being 132. This entails a further charge on the rates of £347 - £3 4s. per house per annum for the 1925 Act and £3 15s. per house per annum for slum clearance, this in the latter case being exclusive of the Government grant.
Subsidising Houses
“The net cost to the town for the year is £2,470, or a rate of 9d. in the £ as against a budgeted rate for 1934-5 of 3.4 pence. To put it another way, on the present basis each house erected by the Council, on the average, is being subsidised by the town to the extent of 1s. 2d. per week. I may remark there is a Housing Bill before the Parliament, a clause of which deals with the pooling of all rents of the houses erected by the Council irrespective of the Act under which the houses were erected, and be it noted that one leading housing authority has already anticipated the passing of the Bill by putting this particular clause of the proposed Act into operation.
In reference to the Water Board precept Mr. Capon observed: “Here is something we are called upon to pay for which we have not had. When we remember the amount budgeted for last year was only £200, here we are asked to provide £1,800, it certainly causes us to heave a sigh. I hardly think it is necessary to enlarge upon the position the facts are so well known to us all. It is one of the paradoxes of life the less we use, the more it costs, and the less others use, the more it costs us. To make a play upon a well-known advertisement, let us hope we can say 'That’s Sywell, that was!'”
“Compulsion at The Door”
Summing up, Mr. Capon said last year’s rate of 10s. 6d. proved to be inadequate and uneconomic. It was nice even money half a guinea and easy to say “ditto.” No body of men constituting a Council would think of raising a rate unless compulsion knocked at the door and knocked hard, but they were up against it and were laying a foundation for the future.
The increase of rateable value to £70,452 would appear to give them a larger sum to use for social services, town improvements, etc., but in reality it gave only a small amount, as the County Council required, as for last year, practically 80 per cent. of the rate the Council levied.
Mr. Capon then moved a rate of 12s. in the £ for the year 1935-6.
The Discussion
Mr. Spencer Denies Waste or Extravagance
The Chairman seconded and said he would like to thank Mr. Capon for the very able way in which he had presented the “Budget.” It was possibly a very unthankful task this year, but Mr. Capon had made the position perfectly clear to them, and they thanked him for the great amount of time he must have spent on it. It required a great deal of thinking about, too.
Mr. Wilmott said he must congratulate the “Chancellor” on his lucid manner and on his correct way of putting the facts. Mr. Capon had said, however, that he could not understand that less water should be associated with more expense. That ought to be easy enough for him to understand, because if they had less water to sell they were bound to have less money coming in.
Mr. Wilmott, who is chairman of the Water Board, added with feeling “I can prophesy, I think, for our next chairman of the Water Board a brighter and happier year than the last one.”
Errors Of The Past
Mr. Spencer supported the proposition. “At the time when we first went into 10s. 6d.,” he said, “in perhaps a mild way I expressed an opinion that it was not quite enough, and Mr. Hornsby, in a more determined way, said it was an impossibility. Ultimately we agreed on the 10s. 6d. rate and now we have found it is impossible to work the town on a 10s.6d. rate. There have been new expenses and new methods, and the water, too, has made the expenses higher than for some years, but in a growing town there is bound to be expense, and with the development there is going to be this expense has got to be met.
“When we consider the social services, and the other services which are very helpful to the health of the people, I don’t think it can be said that there has been any waste or extravagance. It is simply that in the past we thought we could work the town on a 10s. 6d. rate, and it is impossible. For two years we have let the inhabitants have the benefit of a 10s. 6d. rate which really ought to have been 11s. 6d.”
Mr. Roe Speaks Out
Mr. Roe launched his criticisms in seething terms. “I congratulate Mr. Capon,” he said, “but it is a very great shock to find that he is compelled to ask for 1s. 6d. increase.
“I remember that twelve months ago the present Vice-Chairman particularly asked that each committee should be as economical as possible, but I am bound to say that this is the last thing that has been considered. As far as I can see, there has been very little economy practised.
“You know perfectly well that a year ago most of the assessments in the town, particularly those in the High-street where many of the shops are, were increased very considerably. The Council have had the benefit of those increased assessments, and now on top of that we are going to get a 1s. 6d. increase of rate.
“Well, I can tell you that the tradespeople of the town will be very greatly alarmed by the increase, because they are going to pay twice over. On a shop assessed at £100 it means £7 10s. extra a year, and they are not in a position to pay it.
“Many of the expenses could be cut down without detriment to the town. As I tried to point out a fortnight ago certain expenses not estimated for twelve months ago were passed by the Council the new lighting and the improvement at Spencer Park and I quite think that if they had been included in the estimates for this year, the Finance Committee would have cut them out. They are not absolutely urgent.”
Light For Motorists!
“This extra lighting,” continued Mr. Roe with rising warmth, “is to assist motorists principally. It is of no particular benefit to the ratepayers; we have reduced speed through the built-up areas, and it is not so necessary.
“I think these things have got to be considered, and I do hope that each committee this year will endeavour to cut down the expenses, because if they don’t it means 13s. next year.
“Think of the money we have spent! Over £4,000 out of the balances; we have spent the money that has come from the increased assessments, and I think it is wrong altogether. I know a private business would not do it; but it seems that on the Council anything they want is simply passed, and the ratepayers have got to pay for it.
“I did intend to move an amendment that it be 11s. 6d., but Mr. Capon has given such a lucid explanation that I don’t think we can do it. But I do hope the Council will apply the axe a little more forcibly than it has in the past; otherwise I don’t know where we shall get.”
“I take a rather different view,” said Mr. Coles, “and what I want to take exception to is this: I ask Councillor Roe to look at the increased expenditure of the Water Board and on the housing estate. It is a shilling towards the increase, and you will notice that the committees in general have kept well within their limits. Some of them have not spent as much as was allowed for.
Mr. Coles Satisfied
“I can assure the ratepayers that not a single penny has been wasted. Personally, I do not regret the spending of a single penny. So long as you are giving the ratepayers value for money and give public service, then it is very cheap at 12s.”
Mr. Allebone, adding his congratulations, said he knew how difficult it was and remembering what he said last year he was not at all surprised that they were faced with an increased rate. It was pretty obvious that the way they were going on could not be maintained.
In 1932, when they had a balance of £10,000, they were budgeting for an uneconomic rate. They had come down now to an economic rate, and that would be maintained now year by year. If the Council built up a huge reserve they would be putting money into the exchequer that they would have no use for, but as long as they budgeted for their due demands, with a reasonable allowance for emergencies, he did not think they would go far wrong.
“We are all desirous of doing what we can for the town,” continued Mr. Allebone, “but I think it is only right that we should bear in mind what we are contributing for specific purposes. There are one or two things that are somewhat alarming, and before a bold suggestion is brought forward, I hope the councillors will consider what we are spending in these particular matters. Some suggestions were made to a particular committee some weeks ago, and when it was pointed out what those services were providing the suggestions were withdrawn. I ask members in future to consider the rate before they make the suggestions. That is the economic principle the Council must carry on with if we are going to meet our expenditure.”
The rest of the article is on the fold of the paper and half of each line is unreadable.
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