Middlesbrough Labour to take "decisive action" to rescue Council's finances
The Labour group took control of the authority in May this year.
The Labour group at Middlesbrough Council say they are taking "decisive action" to rescue its finances as it is at "critical levels."
It made the announcement on Tuesday (14th November) after it claims "extreme financial mismanagement under the Independent-Conservative administration led by Andy Preston."
Middlesbrough Labour took control of the authority in May this year and they say it "inherited" a financial crisis, one element of which was a depletion of financial reserves to critical levels.
They commissioned a review of the Council's assets with the aim of identifying which assets they owned would better serve public interest being transferred from public to private ownership.
The authority says the net capital receipts generated, which could be up to £30 million, will enable them to invest in an organisation-wide change and modernisation program.
It means Council departments will work more efficiently, focusing on the priorities of local people and saving money. It says doing so will help "safeguard all-important resident’s services that people rely on everyday at this financially challenging time."
Middlesbrough Labour has made the decision for the council to retain a number of key assets including Boho 1, Centre Square 1 and 2, Captain Cook Square, and the Cleveland Centre on the basis of the positive business case for retention.
Councillor Theo Furness, Executive Member for Regeneration, said: “After Labour regained control of Middlesbrough Council in this year’s local elections, it was shocking to see the extent of financial mismanagement which occurred under the Independents and Conservatives.
“The asset review has identified a number of assets which can be sold to support transformational change which will protect services.
“It is incredibly hard having to make these tough decisions, but they simply have to be made to safeguard the future of the council.
“Your Labour Mayor and Labour Councillors will always take the tough decisions in the best interests of the people of Middlesbrough.”