Thursday, May 21, 2009

Council Advertising Income not achieved


Income from advertising on council assets (lampposts, roundabouts, etc) could underachieve by around £300,000 this year according to a report recently considered by the Corporate Resources Overview & Scrutiny Committee.

Last year, the Council agreed to increase income raised through advertising on council assets from £50,000 to £550,000, however the actual figures have left a large deficit in the planned budget.

Following a question to Council in December 2008, it was revealed that the 2008/09 budget was likely to underachieve by £200,000.

For 2009/10, the figures are looking even less favourable as one advertiser has already dropped out of the contract. Based on existing figures, income may only be £235,000, leaving a shortfall in excess of £300,000.

Leader of the Opposition, Cllr Clarence Barrett, said: “Last year we challenged the Cabinet decision to increase income through advertising on council assets on the grounds that we needed reassurance as to the quantity and quality of advertising and that the income projections were way too optimistic. However, our concerns were subsequently voted down by the Tory dominated Corporate Overview and Scrutiny Committee.

“Even given the economic conditions, the need to set income projections at a level which is achievable rather than through wishful thinking is crucial as it impacts on council budgets if the targets are not met”.

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