Agenda item

The Chairman, also the Cabinet Member with Responsibility for Finance introduced the report. The draft budget had been considered at the last meeting and had been updated and revised following consultation and to address issues which were important to the public. Due to the Council’s income increasing faster than forecast, due to rents and increased income from Government, a three year plan for the capital programme was possible rather than the expected two year plan.

Council tax had been increased but was below inflation and Worcestershire would have the second lowest council tax rate in the Country.  The Scrutiny Panels were thanked for their work on the budget scrutiny and Cabinet wished to reassure Councillors, as well as staff, that the County Council had good financial stewardship which allowed it to have resilience and cope with the unexpected. Staff were thanked for their hard work during the difficult time of the previous couple of years.

The Cabinet Member for Adult Social Care was impressed that the updated budget had changed very little from the version which first came to Cabinet. Finances were in a strong position to move forward. There was a fundamental change in the budget with more going to support older people, an increase of £13.7 million, due to demographic change in the County; but this was likely to still leave a gap of £3.4 million. The gap would have been larger if Councillors and MPs had not lobbied for more money which had led to £6.1 million grant from the social care fund. Tribute was paid to the Integrated Care System Chief Executive was supporting Social Care as it was recognised that it was important for health and social care to work together.

Cabinet Members supported the budget and were pleased with the amount of money being spent on highways, LED lighting, improvements to stations, the new Worcester Secondary School and helping families stay together.

Some questions were asked by Members outside the Cabinet:

·       In response to whether some capital money could be diverted to the SEND improvement budget, it was explained that capital money could not be used. Revenue spending could be increased, in theory, but there had already been investment in SEND staff and a recruitment process was currently underway, the inspection in December 2021 reported progress had been made in 8 out of 12 areas of concern, and £6.5 million had been allocated to SEND and vulnerable learners. It was also pointed out that if the capital programme was cut, improvements on bridges, highways and pavements would be affected.

·       It was stated that staff had concerns about pay, with some being paid less than the minimum wage, and there was a general fall in morale. It was queried whether an improvement plan was intended? The Chairman stated that such claims were untrue and cited the positivity he experienced at the Staff Briefing. Cabinet believed that Worcestershire County Council was an employer of choice with good terms and conditions.  It was recognised that staff had had a busy two years, but employees felt valued and a new well-being policy had been introduced.

·       It was felt that the budget did not do enough to address the climate emergency. In response it was stated that there was an ambitious agenda for improving buses and to integrate them with other forms of transport.

RESOLVED that Cabinet to recommend to Council that:

(a)  the budget requirement for 2022/23 be approved at £373.199 million as set out at Appendix 1B, having regard to the proposed Transformation and Reforms programme set out in section 9 of the report;

(b)  the Council Tax Band D equivalent for 2022/23 be set at £1,396.78 which includes £169.47 relating to the ring-fenced Adult Social Care precept, and the Council Tax Requirement be set at £301.346 million, which will increase the Council Tax Precept by 3.94% in relation to two parts:

·       0.94% 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;

·       3.00% Adult Social Care Precept ring-fenced for Adult Social Care services of which 2% was carried forward from 2021/22, in order to contribute to existing cost pressures due to Worcestershire's ageing population;

(c)  the Capital Strategy 2022-25 and Capital Programme of £146.064 million be approved as set out at Appendix 1C and 1D and section 8 of the report;

(d)  the earmarked reserves schedule as set out at Appendix 2 to the report be approved;

(e)  the Treasury Management Strategy and Prudential Indicators set out at Appendix 4 to the report be approved; and

(f)    the Council’s Pay Policy Statement set out at Appendix 5 to the report be approved.

The Cabinet agreed to:

(a)  give delegated authority to the Leader of the Council to recommend to Full Council, in consultation with the Chief Financial Officer, any further adjustments to the revenue cash limits as a result of Central Government confirming the final Local Government Finance Settlement, Council Tax and Business Rates Income, and associated Specific Grants and income for 2022/23; and

(b)  authorise the Strategic Director for People and the Director of Children’s Services in consultation with relevant Cabinet Members with Responsibilities, to approve the agreement for the use of resources between the Council and the Clinical Commissioning Groups under Section 75 of the NHS Act 2006 (the Section 75 Agreement) for 2022/23.