Row over cost of “unwanted, unasked for, out of control White Elephant in Rhyl” as council tax goes up

A local authority meeting descended into a row about spending on a “white elephant” development as council tax rates were being rubber-stamped.

Denbighshire councillors had already approved a council tax rise of 3.8% at last month’s full meeting, but it still needed to ratify town and community council and police and crime commissioner precepts, as part of the process of approving its own tax rise.

During the debate in Tuesday’s full council meeting Prestatyn Cllr Paul Penlington told lead member for finance Cllr Julian Thompson-Hill he and other Plaid Cymru colleagues had opposed the rise.

He then launched into a stinging attack on the council’s record over the Queen’s Buildings project.

He said: “An audit report in January slammed the council’s handling of the contracts and finances of the demolition and development of the Queen’s Buildings in Rhyl.

“That project has only just begun but is already 57% over budget and costs are likely to continue spiralling – all despite an additional £1.5 million being generously granted to it last September by the cabinet.

“Coincidentally this 3.8% council tax rise will raise £1.5 million needed to meet our budget shortfall.

“The well-being assessment presented to us in January started residents of Denbighshire hadn’t been consulted with regard to this council tax rise.
“The average income in Denbighshire is £24,000 and many will be on a lot less than that.

“People on an average income will now work around one month just to pay their council tax.

“Is that in order to fund an unwanted, unasked for, out of control White Elephant in Rhyl?”

Cllr Penlington added: “Do you believe our residents needs and wishes being properly met and considered?
“And what are the prospects for future council tax rises as the costs of this project continue to rise?”

Cllr Thompson-Hill said the majority decision of the council was binding on the council tax rise.

He called the remarks about the Queen’s Buildings development a “red herring”, although he “accepted” there had been issues with it.
He said: “That refers to capital funding which is allocated to a capital project, not revenue funding.”

He explained while the council used revenue funding for a number of schemes in order to make repayments against borrowing, the Queen’s development was supported through capital funding.
He added: “It therefore has no relevance on the council tax increase that was put in place.

“You will see quite clearly what the council tax increase is going towards funding.
“It’s going towards increased investment in schools, both adult and children’s social care, it’s going towards funding the environmental works and the ash dieback we were talking about earlier and a number of other areas.

“That’s what the increased funding is going on – all essential items.”

He said he disputed Cllr Penlington’s comments about it being “frittered away” on the project in Rhyl.

“We had a perfectly good debate at corporate governance about the funding (of Queen’s Buildings),” he said. “And we will be going back again with regards to that particular project.

“Some capital projects do have issues. That is the inevitability of dealing with capital projects and we have to deal with them as we get to them.”

He said the current debate was purely about the legal formalities of voting for council tax and voting against it would effectively be saying “you don’t want to comply with the law and send council tax bills to residents”.

Cllr Penlington replied: “I appreciate there are different budgets for this, that and the other but you tell that to the residents of Denbighshire who are giving up one month’s wages to pay for their council tax.”

By Jez Hemming – Local Democracy Reporter