Concerns raised about Fareham Live and Solent Airport debts as council's budget shortfall exposed

Gareth Jones, who has lived in Fareham for 50 years, has criticised Fareham Borough Council for using money reserved for revenue spending to repay debts on capital projects such as Fareham Live or the Solent Airport.

Councils use capital funding for large assets or investments while revenue budgets pay for the day-to-day costs of running a council.

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Mr Jones said: ‘Borrowing levels are expected to be £52.2m at the end of 2023/24 to fund the capital programme.

‘Debt is only a temporary source of finance, since loans and leases must be repaid, and this is therefore replaced over time by other financing, usually by putting aside revenue resources to repay debt.

‘In particular, is the transfer of £5.02m 2022/23-2026/27 (five years) from the revenue budget to that of capital.

‘We have been told there will be a revenue budget shortfall of £6m over the same period.

‘An almost exact match. A solution seems clear to me.

‘I await with interest to see what new plan they come up with to introduce other stealth taxes based on the false premise that the revenue budget has a shortfall.

‘It would be nice to think given the significant amount of public money being spent on Daedalus and Fareham Live that both will see a significant return on investment that will prevent the need for any new sources of income being required.’

In response, Councillor Sean Woodward, leader of the council said: ‘Capital (savings) can only be spent once and it is therefore totally unsustainable to start spending capital on the running costs of services. So serious is the prospect that it would actually require special government approval to do so as it is likely indicative of a failing council.

‘We will as we always continue to provide excellent services to our residents for the cost of just £3 per week for the average home (almost the lowest in the country) and we will still deliver some amazing projects in the borough such as facilities for hundreds of jobs at Solent Airport and a great arts and entertainment complex, Fareham Live. Both projects have a very positive outcome for residents.’