Telford's High-Stakes Gamble: Our Council is Betting Our Future on the Property Market!
Let’s talk about our money. Specifically, let's talk about Telford and Wrekin Council's finances. On the surface, the story is a political dream. The council boasts 16 years of balanced budgets, low council tax, and a knack for winning government grants. They’ve managed to navigate over £180 million in government cuts since 2010. It sounds like a miracle of financial management, right?
But when you pull back the curtain, a much riskier and more concerning picture emerges. Our council isn’t just collecting bins and fixing potholes anymore; it’s behaving like a high-stakes property speculator.
The Property Gambler
The cornerstone of the council’s financial “resilience” is its commercial property portfolio. Through its ‘Grade Fund’ and ‘Nu Place’ investments, the council generates over £12 million a year. This money is used to plug gaps in services and keep our council tax bills down.
But here’s the problem: this isn't a safe, boring savings account. This is the council borrowing huge sums—it’s authorised to borrow up to £665 million—to bet on the volatile commercial property market. Think shopping centres and business parks.
What happens if there’s a major economic downturn, if remote work permanently reduces demand for office space, or if interest rates rise further? These income-generating assets could swiftly become massive liabilities. We’re not talking about a small loss; we’re talking about a gamble with public money on a scale that could threaten the very services it’s meant to protect.
The Illusion of Balance
Then there’s the “balanced budget” itself. This year, the council faced a shocking £11.3 million overspend, almost entirely driven by the crisis in Adult Social Care. This isn’t a one-off; it’s a sign of a system buckling under immense pressure.
How did they “balance” it? Not with a long-term solution, but by using emergency contingencies and finding quick savings. It’s the financial equivalent of putting a plaster on a broken leg. With over half of its budget now consumed by social care, this juggling act is becoming more dangerous every year. The core function of caring for our elderly and vulnerable is pushing the entire system to the brink.
A Stealth Tax on the Most Vulnerable
Even the council’s new plan to manage Houses of Multiple Occupation (HMOs) reveals a flawed financial logic. The scheme will be funded by charging landlords a £1,500+ licence fee. But let’s be real—landlords are businesses, not charities. This cost will be passed straight on to tenants in higher rents.
So, the council is effectively funding a public protection service through a stealth tax on some of the borough's lowest-income renters. It’s a policy that claims to help vulnerable people while making their lives more expensive.
In short, our council’s survival strategy is a high-wire act. It’s balanced for now, but it’s dependent on property markets staying strong and on continuing to fund essential services with what is essentially gambling revenue. It’s a damning indictment of a decade of national austerity, but that doesn’t make it a safe plan for our future.
A Better Way: Building a Telford That’s Wealthy, Healthy and Resilient
So, if the current path is so risky, what’s the alternative? It’s time to stop just managing the decline and start building a genuinely resilient local economy. Imagine a council that doesn’t just follow the market, but shapes it for the public good.
This alternative isn’t a fantasy; it’s based on proven models from forward-thinking councils across the UK.
1. Invest in Our Homes, Not Just Office Blocks
Instead of gambling on commercial property, the council should use its borrowing power to launch a borough-wide, council-led home insulation and solar power programme.
· How it works: The council finances the retrofitting of thousands of homes with proper insulation and solar panels.
· The payoff: This creates hundreds of skilled local jobs, slashes everyone’s fuel bills (tackling the cost-of-living crisis head-on), and drastically reduces our carbon footprint. The council gets a return on its investment through energy savings and selling power back to the grid—a "Green Dividend" for everyone. This is public finance for public good.
2. Build and Own Our Affordable Housing
Instead of taxing tenants in substandard HMOs, let’s drown the rogue landlords out with quality.
· How it works: The council should expedite the use of its powers to bring empty homes back into use and directly commission the building of beautiful, eco-friendly, affordable homes on its own land.
· The payoff: This creates a public-owned housing stock that generates stable, long-term income for the council while providing secure, warm, and affordable homes for residents. It builds community assets, not private profit.
3. Create a "Community Care" Economy
We can’t just keep throwing money at the social care crisis. We need to prevent it.
· How it works: The council can commission care services from local, not-for-profit cooperatives (owned by the staff and users), keeping money and jobs in Telford. Simultaneously, invest in community hubs, social clubs, and lunch clubs. These aren’t luxuries; they are vital infrastructure that combat loneliness and keep people healthy and independent for longer.
· The payoff: A happier, healthier community and lower long-term demand for expensive crisis care. It’s smarter spending.
A Council That Works With Us
This new approach requires a new kind of politics: one that is more transparent and democratic. Imagine having a direct say in how a portion of the budget is spent through Participatory Budgeting. Imagine a "Council Tax Justice Statement" that clearly shows where our money goes and makes the powerful case to Westminster for a fairer funding deal.
This isn't just better accounting. It’s a different vision for Telford and Wrekin—one where the council is a bold market-shaper, not a desperate market-follower. The goal isn’t just a technically balanced budget, but a borough that is genuinely more wealthy, healthy, and resilient for all of us. It’s a future worth building.
Let’s talk about our money. Specifically, let's talk about Telford and Wrekin Council's finances. On the surface, the story is a political dream. The council boasts 16 years of balanced budgets, low council tax, and a knack for winning government grants. They’ve managed to navigate over £180 million in government cuts since 2010. It sounds like a miracle of financial management, right?
But when you pull back the curtain, a much riskier and more concerning picture emerges. Our council isn’t just collecting bins and fixing potholes anymore; it’s behaving like a high-stakes property speculator.
The Property Gambler
The cornerstone of the council’s financial “resilience” is its commercial property portfolio. Through its ‘Grade Fund’ and ‘Nu Place’ investments, the council generates over £12 million a year. This money is used to plug gaps in services and keep our council tax bills down.
But here’s the problem: this isn't a safe, boring savings account. This is the council borrowing huge sums—it’s authorised to borrow up to £665 million—to bet on the volatile commercial property market. Think shopping centres and business parks.
What happens if there’s a major economic downturn, if remote work permanently reduces demand for office space, or if interest rates rise further? These income-generating assets could swiftly become massive liabilities. We’re not talking about a small loss; we’re talking about a gamble with public money on a scale that could threaten the very services it’s meant to protect.
The Illusion of Balance
Then there’s the “balanced budget” itself. This year, the council faced a shocking £11.3 million overspend, almost entirely driven by the crisis in Adult Social Care. This isn’t a one-off; it’s a sign of a system buckling under immense pressure.
How did they “balance” it? Not with a long-term solution, but by using emergency contingencies and finding quick savings. It’s the financial equivalent of putting a plaster on a broken leg. With over half of its budget now consumed by social care, this juggling act is becoming more dangerous every year. The core function of caring for our elderly and vulnerable is pushing the entire system to the brink.
A Stealth Tax on the Most Vulnerable
Even the council’s new plan to manage Houses of Multiple Occupation (HMOs) reveals a flawed financial logic. The scheme will be funded by charging landlords a £1,500+ licence fee. But let’s be real—landlords are businesses, not charities. This cost will be passed straight on to tenants in higher rents.
So, the council is effectively funding a public protection service through a stealth tax on some of the borough's lowest-income renters. It’s a policy that claims to help vulnerable people while making their lives more expensive.
In short, our council’s survival strategy is a high-wire act. It’s balanced for now, but it’s dependent on property markets staying strong and on continuing to fund essential services with what is essentially gambling revenue. It’s a damning indictment of a decade of national austerity, but that doesn’t make it a safe plan for our future.
A Better Way: Building a Telford That’s Wealthy, Healthy and Resilient
So, if the current path is so risky, what’s the alternative? It’s time to stop just managing the decline and start building a genuinely resilient local economy. Imagine a council that doesn’t just follow the market, but shapes it for the public good.
This alternative isn’t a fantasy; it’s based on proven models from forward-thinking councils across the UK.
1. Invest in Our Homes, Not Just Office Blocks
Instead of gambling on commercial property, the council should use its borrowing power to launch a borough-wide, council-led home insulation and solar power programme.
· How it works: The council finances the retrofitting of thousands of homes with proper insulation and solar panels.
· The payoff: This creates hundreds of skilled local jobs, slashes everyone’s fuel bills (tackling the cost-of-living crisis head-on), and drastically reduces our carbon footprint. The council gets a return on its investment through energy savings and selling power back to the grid—a "Green Dividend" for everyone. This is public finance for public good.
2. Build and Own Our Affordable Housing
Instead of taxing tenants in substandard HMOs, let’s drown the rogue landlords out with quality.
· How it works: The council should expedite the use of its powers to bring empty homes back into use and directly commission the building of beautiful, eco-friendly, affordable homes on its own land.
· The payoff: This creates a public-owned housing stock that generates stable, long-term income for the council while providing secure, warm, and affordable homes for residents. It builds community assets, not private profit.
3. Create a "Community Care" Economy
We can’t just keep throwing money at the social care crisis. We need to prevent it.
· How it works: The council can commission care services from local, not-for-profit cooperatives (owned by the staff and users), keeping money and jobs in Telford. Simultaneously, invest in community hubs, social clubs, and lunch clubs. These aren’t luxuries; they are vital infrastructure that combat loneliness and keep people healthy and independent for longer.
· The payoff: A happier, healthier community and lower long-term demand for expensive crisis care. It’s smarter spending.
A Council That Works With Us
This new approach requires a new kind of politics: one that is more transparent and democratic. Imagine having a direct say in how a portion of the budget is spent through Participatory Budgeting. Imagine a "Council Tax Justice Statement" that clearly shows where our money goes and makes the powerful case to Westminster for a fairer funding deal.
This isn't just better accounting. It’s a different vision for Telford and Wrekin—one where the council is a bold market-shaper, not a desperate market-follower. The goal isn’t just a technically balanced budget, but a borough that is genuinely more wealthy, healthy, and resilient for all of us. It’s a future worth building.
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