Tell the truth - it's a Conservative blooper not value for money

Labour has ridiculed Conservative claims that Ealing Council’s £50 cashback comes from their ‘prudent financial management’ and accused them of lying to the public.

“We’re really pleased about the £50 cashback but I am shocked that the Conservatives are lying about where the money has come from.  The Conservatives are pumping out press releases from the Council press office calling the £50 a ‘value for money premium’ but the truth is this money came from a massive blooper not value for money.  The cash was lost by council accountants under the last Conservative Council and has been sitting in the accounts for years.  It’s no more prudent than finding a fiver in the pocket of an old pair of trousers.  But like finding a missing fiver it’s great to have it back”, said Ealing’s Labour Leader Cllr Julian Bell.

The Council’s new Finance Chief Ian O’Donnell revealed the truth about the money in a report to councillors on 23 June 2009.  He said, “During the audit of our 2007/08 accounts our external auditors questioned an item sitting on the balance sheet relating to the accounting of NNDR [National Non-Domestic Rates or Business Rates] returns dating back to the 1990s.  As a result of accounting investigations by Corporate Finance, a detailed paper was presented to the auditors, satisfying them that none of it related to outstanding payments to the DCLG [Department for Communities and Local Government].  The Council has therefore been able to transfer £4.6 million to the general fund revenue account”.

The money was originally set aside for NNDR payments to Government in 1992/93 when the Conservatives were last in control of Ealing council.