Agenda and draft minutes

The Vice-Chairman, Cllr Karen Hanks welcomed everyone to the meeting which she would be chairing as the Chairman Cllr Matt Dormer was unable to attend.

Apologies were received from Councillors Matt Dormer and Ian Hardiman.

None.

Members of the public wishing to take part should notify the Assistant Director for Legal and Governance in writing or by e-mail indicating both the nature and content of their proposed participation no later than 9.00am on the working day before the meeting (in this case 15 January 2024).  Further details are available on the Council's website.  Enquiries can also be made through the telephone number/e-mail address listed in this agenda and on the website.

None.

Previously circulated

The Minutes of the Meeting held on 17 November 2023 were agreed as a correct record and signed by the Chairman.

The Deputy Finance Officer (DCFO) introduced the Councils draft Budget for 2024/25 and explained the national context and the key headlines for the Council. This was followed by an explanation of specific budget information for 2024/25 for the Economy and Infrastructure Directorate. Comments from the Panel’s discussion would be reported to the Overview and Scrutiny Performance Board on 29 January. The draft budget and comments received would then be considered by Cabinet on 1 February and the Budget would be agreed at Council on 15 February.

The DCFO summarised the key headlines from the draft Budget 2024/25 stating that Local Authorities were under extreme pressures nationally. The Local Government settlement on 18 December had indicated additional government funding of £21m.  However, this was a net £1.6m reduction on the expected funding and not keeping pace with the demands and pressures faced by the Council. The main pressure areas were in Adult and Children’s Social Care and Home to School Transport caused by inflationary demands and demand pressures that continued to increase. Currently, there was a £20.4m gap that needed addressing.

It was proposed that Council Tax would increase by 4.99% which included a 2.99% increase plus 2% Adult Social Care Levy. Despite this increase the Council was likely to remain in the lowest quartile for level of Council Tax for an average Band D householder for comparable authorities.

The indicative net revenue investment for the Directorate related to a £1.3m increase into Transport and Strategic Planning, £1.3m increase relating to the fallout of the final tranche of the PFI grant relating to waste along with £0.6m relating to waste demand, pay inflation of £1m and contact inflation (including waste) of £3.379m. It was also noted that the of £0.962m budget relating to the management of the Home to School Service had transferred from Worcestershire Children First to the Directorate. This total indicative investment and inflation of £8.5m was offset by Directorate savings and the reviewing of structures.

During the discussion, the following main points were made:

• It was noted that the final Government settlement was expected by the end of January 2024 and that there was no indication from Government that further funding would be made available to Councils despite strong lobbying. Councils were expected to use reserves, maximise income from Council Tax and live within their means. The DCFO assured the Panel that the Council would be setting a balanced budget for 2024/25.
• It was noted that some Councils had requested special permission to increase their Council tax beyond the 4.99% cap to 9.99% without the need for a referendum if they were having trouble in settling a balanced budget and this was termed “pre S114”.
• The DCFO explained that a S114 Notice of the Local Government Finance Act 1988 was a report issued by a council's statutory chief finance officer (section 151 officer) when it appeared to them that a council's expenditure would exceed the resources it had available in a financial year.
• In response to a question  ...  view the full minutes text for item 71.

No amendments were made to the work programme.