Agenda item

The Cabinet considered the 2018/19 Draft Budget and Council Tax for recommendation to Full Council. The details were set out in the report and its Appendices.

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

·         The Leader of the Council introduced the report and commented that:

-        There were three key elements to the budget: In response to demand-led pressures in Children's and Adult Social Care – an extra £10.5m for Children's Social Care, and also £7.8m for Adult Social Care funded by a 3% increase in Council Tax; an extra £37.5m capital investment to grow the local economy and enhance infrastructure; and responding to public concerns about roads, pavements and congestion

-        To fund these proposals the public would be asked to pay approximately an extra £1 a week on an average Band D property

-        The Council was driving the engine for reform to ensure services were fit for purpose to meet demand in an efficient and effective way

-        He updated Cabinet on events since the last report to Cabinet in December 2017: the Local Government settlement had been published and he welcomed the additional £1.49m Adult Social Care support grant; a wide ranging consultation and engagement process had taken place and he thanked OSPB and the scrutiny panels for their contribution – the key message was the need to engage scrutiny as early as possible in the budget-setting process to allow them to shape/inform the proposals; further information had been received on the Minimum Revenue Provision which gave confidence that the additional savings could be made; and the budget had been updated to reflect inflationary pressures, particularly in relation to the wage bill and contractual obligations

-        In summary, the Council was able to deliver a balanced budget for the next financial year that addressed the pressures facing the council whilst enabling the local economy to grow

·         The Council had engaged in a full round of public engagement but it was disappointing that the comments from OSPB were received so late in the budget-setting process. The Government had responded to lobbying and given a commitment to provide additional funding in the Adult Social Care support grant was welcomed. The challenge would be to meet the reform agenda in the forthcoming financial year. It was disappointing that the Council had not been awarded the Business Rates Pilot but the Council would seek to make a further bid in the next round of bidding. The key challenge in next year's budget would be not only to deliver the savings but also for the Council to submit a full and reasoned response to the Green Paper to ensure the long term sustainability of Adult Social Care. The Council remained in a robust financial position

·         Extra investment was being made in Children's Services to provide better services and address legacy issues as well as responding to the issues raised in the Ofsted Report. The Council was tackling the issues in Children's Services by using the additional funds to improve services for children, as well as delivering Children's Social Care through an ADM

·         The increase in Council Tax including the 3% levy for Adult Social Care struck the right balance between protecting vulnerable adults and children as well as acting in the best interests of local taxpayers. At the budget consultation meeting representatives of local schools welcomed the extra £10.6m funding available through the National Funding Formula which would increase funding for every pupil in the county

·         At the budget consultation session for the voluntary sector, there was a general recognition of the financial and other pressures facing the Council

·         In response to a query, the Cabinet Member for Children and Families confirmed that the additional funding for Children's Services would be spent on improving services and not on the ADM. It was hoped that further funding would be received from the Government for the ADM in the future

·         A Member from outside the Cabinet indicated that the Council had failed to lobby Government effectively, failed to set out the costs of the ADM and continued to pay a number of senior officers over £100k pa despite budget and service reductions. In response the Leader of the Council commented that investment in senior management was an essential element in driving forward reform and delivering efficient and effective value for money services. To attract the right individuals, the Council had to pay the market rate. The Council had now appointed to the senior roles that had been recently vacated. The local economy was growing and as a result the net budget was increasing. The Council had robustly lobbied the Government and had been successful in gaining additional funding

·         The Cabinet Member for Children and Families explained that the model for the ADM for Children's Social Care had yet to be determined and an application for funding had not yet been submitted to the Government. However, work had progressed on the assumption that a wholly-owned company model would be adopted. More details should become available by 31 March 2018. There were a number of elements that needed to be priced into the model and consultants had been engaged to help the Council with the process

·         A Member from outside the Cabinet commented that the timing of the Council's response to the Green Paper on Adult Social Care was critical. The Interim Chief Financial Officer confirmed that the £1.49m transitional grant was for one year only in 2018/19. The Leader added that the Funding Formula Review was imminent and the Council needed to influence this process to reflect the demand-led pressures and create a sustainable council

·         The Chairman of the OSPB commented that it was unfair to criticise the lateness of comments from the OSPB given the amount of work necessary within the reduced budget-setting period. The comments on the time-frame for the consultation process were meant to be constructive so that consultation took place over a 12 month rather than 6 week period. The Leader of the Council agreed that consultation should take place throughout the year and would welcome scrutiny of the quarterly financial information

·         A member from outside the Cabinet expressed doubt about the validity of the assumptions made in the third year of the MTP

·         The Interim Chief Financial Officer was thanked for her work in putting the budget papers together

·         The OSPB should focus on the elements of the budget it wished to scrutinise at the earliest possible stage in the budget-setting process  

·         A member from outside the Cabinet indicated that the flow of budget information provided to members had not been thought through. In response it was commented that that there was an element of responsibility for group leaders to attend Cabinet Member briefing sessions and cascade information to their group members

·         The Leader of the Council concluded that despite this Council Tax rise, the Council remained in the lowest 25% of all councils (without responsibility for a Fire Authority) for Council Tax charges in the country.

RESOLVED TO RECOMMEND TO COUNCIL: that

a)    the conclusions set out in the report concerning revenue budget monitoring up to 30 November 2017 be endorsed;

b)    the virement and transfers to Earmarked Reserves in paragraph 28 to 30 be endorsed;

c)    the budget requirement for 2018/19 be approved at £324.192 million;

d)    the Council Tax band D equivalent for 2018/19 be set at £1,212.38 which includes £78.71 relating to the ring-fenced Adult Social Care precept, and the Council Tax Requirement be set at £251.537 million;

e)    consistent with the provisional Local Government Finance Settlement that revenue cash limits be set for each Directorate:

*Public Health services budget £0.100 million less £0.931 specific grant income which supports qualifying expenditure across the County Council. The total Public Health ring fenced grant is £29.1 million.

f)     the Council's Pay Policy Statement is recommended for approval as set out in Appendix 6 of the report;

g)    the conclusions set out in the report concerning capital budget monitoring up to 30 November 2017 be endorsed;

h)    the capital programme as set out in Appendix 7 of the report be approved;

i)     the Medium Term Financial Plan as set out in Appendix 8 of the report be approved;

j)     the Treasury Management Strategy set out in Appendix 9 of the report be approved;

k)    the Statement of Prudential Indicators and Minimum Revenue Statement as set out in Appendix 10 of the report be approved.

l)     the Minimum Revenue Provision Policy revision be approved.

RESOLVED: that

m)  delegated authority be given to the Leader of the Council to recommend to Full Council, in consultation with the Interim Chief Financial Officer, any further adjustments to the revenue cash limits in (c) and (e) above as a result of Central Government confirming the final Local Government Finance Settlement, Council Tax and Business Rates Income,  and associated Specific Grants for 2018/19, together with any updates following publication of the revised  Prudential and Treasury Management codes of practice and amended Ministry of Housing, Communities and Local Government (MHCLG) guidance on Local Authority Investments and Minimum Revenue Provision; and

n)    the Director of Adult Services and the Director of Children, Families and Communities be authorised to finalise the details in respect of their Directorates and formally execute the Section 75 agreement for Commissioning arrangements with Health for 2018/19.