Agenda item

The Cabinet considered the 2019/20 draft Budget and medium Term Financial Plan and the proposal to consult on the draft recommendation that the Council tax precept should be increased by 3.99%.

The Cabinet Member for Finance (also the Leader of the Council) introduced the draft budget, explaining that they wished to hear people's views before the final decision was taken at Council on 14 February 2019. The budget addressed the demand-led pressures in social care which accounted for 70% of the Council's resources. Investing in the economy was also a priority for the Council which would increase Business Rates and allow the Council to support the most vulnerable people in society. Although the Council's income had increased, social care demand meant that costs were increasing at a faster rate. The demand for social care was a national issue and one the Government needed to address. There was likely to be £6.5 million given by the Government to help with Winter Pressures and Social Care and £6.6 million for highways but they were one off payments.

The proposed Budget suggested:

·         an extra £14 million be put into adult services after savings and efficiencies

·         An additional £7.7 million was being put into children's services which was on top of the £10.5 million extra put in last year,

·         An increase of £50 million was being put into capital projects with £26 million into infrastructure and the rest to ensure the Council can be redesigned to make it sustainable in the future

·         It was proposed that Council tax should increase by 3.99%; 2.99%for general pressures and 1% for adult social care. Council Tax in Worcestershire would still be one of the lowest county precepts in the country.

In the ensuing discussion the following comments were made:

·         The Cabinet member for Adult Services stated that the budget was boosting funds to help deal with the demand pressures of Adult and Children's Social Care, especially those with Learning disabilities. He mentioned the proposed increase to Council Tax, which may only be 97p per week for most people but he acknowledged the increase was likely to be more than most older people's pension increases. He thanked the three public speakers for giving their views at the meeting and agreed to consider their comments

·         The Cabinet Member for Children and Families wished to confirm that the Council was investing for progress with £7 million being invested in Children's services. Improvements had been made and hopefully that would continue

·         The members of the public who took part in the public participation were thanked for their contribution. Their clear message about engagement was noted

·         It was noted that it was positive that the Worcestershire economy was expanding more than elsewhere and there was low unemployment. It was encouraging that an extra £3 million would be invested in 'Open for Business' and The Council had capable officers assisting with various projects such as the 5G, Malvern Hills Science Park, Worcester 6, the Redditch Eastern gateway, the Southern link road and the new Worcestershire Parkway

·         Highways were a concern for residents because they were essential for jobs and consequently quality of life. Worcestershire road and rail network was almost in the top quartile with the County having a good record for pothole repair and congestion being tackled. £12.2million would be invested next year and an additional £6.6 million would come from Government

·         Consultation would take place with Parish and Town Councils. The Consultation about the Library Service was already underway

·         The Public Health Ring Fenced Grant was an amount of £28 million but had reduced over the last few years. The grant was mainly for prevention and to narrow health inequalities with 75% of the grant spent on statutory responsibilities. The rest of the grant was spent on services such as advice in libraries and working with planners for health provision

·         Parish Councils were sympathetic to the work that needed to be done with the existing financial restraints

·         There was a query about street lighting due to concerns about crime. It was clarified that older concrete columns and some high usage areas were being replaced with new LED lights. It was requested that liaison officers inform local members when replacement programmes were happening in their area.

RESOLVED that Cabinet:

(a)  approved for consultation the draft budget set out at Appendix 1b of  £330.4 million which included the proposed Transformation and Reforms programme set out in Appendix 1c;

(b)  approved for consultation the capital programme 2019-22 of £229.0 million;

(c)  approved for consultation an earmarked reserves schedule as set out at appendix 2; and

(d)  agreed that it was minded to recommend to Council in February 2019 an increase in Council Tax Precept by 3.99% in relation to two parts:

·         2.99% 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

·         1% 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.