Labour’s claims to be a party of economic responsibility have been undermined, with an announcement to increase borrowing by £20 million in their upcoming budget. Liberal Democrat Councillor Paul Firth has questioned whether this gamble which exposes York’s residents to substantial risk and expense is appropriate at this time.

Only just over a year ago Cllr Alexander was expressing his grave concern that the council’s debt had reached £116 million spuriously quoting similarities with the national debt of Greenland. Now with the stroke of a pen he hopes to add a further 17% increase on that debt. At the same time the proposed budget would impose a substantial increase in council tax of 2.9%, to go towards paying off the debt generated by the irresponsible borrowing, while at the same time reducing services imposing redundancies and cutting funding to voluntary groups.

Paul Firth, Liberal Democrat spokesperson for Corporate Services, commented saying “After criticising the City of York’s debt whilst in opposition, James Alexander seems happy to add massive increases to it now that he’s in power. Reckless borrowing from the last Labour government has brought the country to its knees and now he seems intent on bringing the same misery to York. He must learn that in challenging times the answer is not to pile onto a city’s debt whilst simultaneously hiking the taxes of those that live there”.

“It is highly questionable if this borrowing will provide the returns to the council that Labour seem to hope it will, and in the mean time York’s debt will continue to grow. This is a substantial amount of borrowing that we’re dealing with, and it seems that the move is being made without a clear plan about how that will translate into economic benefit for the city”.