Agenda item

The Cabinet considered the 2018-19 draft Budget and Council Tax for consultation including proposals for a number of savings as well as plans for investment in Children's Social Care.  The details were set out in the report.

In the ensuing discussion, the following main points were made:

·       The Leader (also Cabinet Member for Finance) introduced the report. This was the start of the budget setting process.  Following the proposed consultation the final budget would be brought back to Cabinet and Council in February 2018. The aim was to set a balanced budget. It was a demand led budget with two thirds being allocated to children's and adults services, which were demand led services

·       It was proposed to utilise the opportunity for the full 3% increase for adult services as a ring-fenced precept. There would also be a 1.94% increase to deliver outcomes in line with the Corporate Plan

·       The budget was within £1million of balancing but there was confidence that the gap would be closed without further affecting services

·       This had been a hard budget to put together due to the current financial situation and a considerable amount of effort would be required to deliver it during the next year. The reform programme needed to continue and the Local Government Finance Settlement was still awaited

·       The additional £3million for adult services was welcomed as demand for services was increasing due to demographic pressures as well as an increasing number of people who were no longer able to fund their own care. By vigorously supporting adult social care services the acute sector was also being helped.  An additional cost was the Deprivation of Liberty Standards which was an unfunded pressure

·       Cabinet Members felt it was a good news budget. There was a long list of projects being funded which would benefit communities such as improvements to roads and footways, flood alleviation, libraries (the top library service in the country for numbers of visits) and children's placements and safeguarding

·       Cabinet Members wished to thank staff for the efficient and effective way they were producing the detail of the draft budget and their dedication to their work, as demonstrated by highways staff in clearing the roads during the recent snow and CFC staff working to improve Services for children

·       A Member from outside the Cabinet expressed concern that there was a financial planning gap of £32 million, with a further cutback of £27milliion next year; whilst at the same time people were being asked to accept a council tax increase of almost 5% while seeing a cut in services. He wished to know what would happen once the reserves were used up and felt that this budget would not benefit people in the future as austerity would continue

·       The Leader commented that there were positives in the budget with lots of investment in areas which were important to local people; it was not just balancing budgets. Worcestershire had to live within its means and worked to mitigate the effects of limited income. It should also be noted that Worcestershire had one of the fastest growing economies in the country.

RESOLVED:  that

(a)            the draft budget set out at Appendix 2 to the report which includes a proposed Transformation and Reforms programme set out in Appendix 3 to the report be approved for consultation;

(b)            the plan to address a forecast remaining savings requirement of £1 million as a result of updating the Medium Term Financial Plan (MTFP) be endorsed;

(c)            an investment of £10.5 million for Children's Social Care be endorsed;

(d)            the Director of Economy and Infrastructure, in consultation with the Leader of the Council and the Chief Financial Officer, be delegated authority to manage individual allocations of the Highways Infrastructure Investment Fund within the overall investment sum of £37.5 million; and

(e)            the Cabinet agrees that it is minded to recommend to Council in February 2018 an increase in Council Tax Precept by 4.94% in relation to two parts:

·     1.94% to provide financial support for the delivery of outcomes in line with the Corporate Plan 'Shaping Worcestershire's Future' and the priorities identified by the public and business community

·     3% Adult Social Care Precept ring-fenced for Adult Social Care services in order to contribute to existing cost pressures due to Worcestershire's ageing population.