Lib Dem councillor accuses Labour of giving Luton Airport 'sacred cow status' as budget row continues

Luton's Labour ruling group "has awarded its airport sacred cow status" to protect itself financially, the borough council's Liberal Democrat group leader has claimed.
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The local authority was warned in February that it was proposing "a very high risk budget," according to Liberal Democrat Barnfield councillor David Franks.

But council leader and Labour Lewsey councillor Hazel Simmons described emergency savings as "an awful budget to have to do".

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She proposed recommendations relating to London Luton Airport Limited (LLAL) at a full council meeting on Tuesday, July 14.

Luton AirportLuton Airport
Luton Airport

The emergency measures will lead to 365 job losses and cuts to front line services to cover a £22.2m budget gap because of the impact of the pandemic.

Councillor Franks said: "We told you in February that you were setting a very high risk budget.

"We accept that nobody could have predicted the coronavirus crisis.

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"It has affected all local authorities, but no other council in the country is in anything like this kind of mess.

"All this is because our Labour council has awarded its airport sacred cow status.

"Everything has to be sacrificed for the airport and as usual the poorest and most needy residents are going to have to pay the price.

"A significant part of the £83m it's proposed to loan the airport company is going to be used to pay the interest on money we've already loaned it," he added.

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"I reckon the total the airport company currently owes the council is in the region of £400m.

"Add the £83m and it gets you closer to £500m. There are dangers and I hope someone is keeping a close eye on it."

Labour High Town councillor Andy Malcolm, who presented the emergency budget and is the finance portfolio holder, replied: "Fundamentally, you don't stand for anything.

"You've not made any suggestions as to how you would address this problem.

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"There's nothing there. There's no substance to your objection."

The Liberal Democrat group opposed the emergency budget, which was approved as Labour and Conservative councillors voted in favour.

Councillor Simmons told the meeting: "Recommendation eight notes that talks are taking place between LLAL, the council owned airport company, and the airport operator.

"A further report will be submitted to council, as the LLAL shareholder, at an appropriate time," she explained.

"The report does not request any further loans to LLAL.

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"Any requests which do come through will be dealt with separately via our normal governance arrangements of finance review group and then to the executive.

"It's probably been the worst time in my political career. Making cuts like this has never been on our agenda.

"This we believe is the least worst option we could put before the council."

Turning to the opposition group leader she said: "As usual you moan and groan.

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"No amendment to say this is what you should be doing. These are the ideas from the Liberal Democrat group.

"You should have been putting forward your own argument if you don't agree with ours.

"This has been an awful budget to have to do and for the way you've treated it tonight I think it's appalling."

Leader of the Conservative group and Bramingham councillor John Young said: "Yes, we're in a difficult position. I've lived in Luton for just over 25 years.

"I classify myself as a member of the Luton fraternity and therefore the Conservative group will be voting for the budget."