Agenda item

The Leader, also the Cabinet Member for Finance, explained that the draft budget had been out for consultation with Scrutiny and at other forums. The Leader thanked everyone who had engaged with the consultation process and believed that people understood the undeniable pressures of demand led services, inflation and rising costs, as well as the ambitious agenda which needed investment for Worcestershire’s future. Scrutiny members were thanked for the detailed work they had done on the proposals.

The key proposals were around having the resources to meet demand led pressures to support the needs of the most vulnerable residents within the County. The pressures amounted to £67.9 million and would be funded by an excellent settlement from Government, the efficiency reform and income programme and asking residents to pay a little more on their Council Tax.

Some minor amendments had been clarified such as £19.4 million for roads, which was within the funding envelope already set out; a one-off capital investment in Malvern Outdoor Centre; a 5% uplift for the Parish Lengthsman scheme and £50,000 for the Coronation.

The Cabinet Member for Communities explained that at the consultation with Parish and Town Councils, there had been no negativity around the overall financial strategy and they had been pleased with the uplift to the Lengthsman scheme. The investment in highways was seen as a benefit for all, whether they were motorists, bus users, cyclists or pedestrians. The increase of 4.94% in Council Tax would yield around £13.9 million in vital additional resource. It was a fair and measured budget and there was a clear plan to balance the books and deliver the services that residents expected, wanted, and deserved.

Cabinet Members thanked OSPB and Scrutiny Panel members for their time and their well made comments, and were pleased that the business community had been included in the consultation. They felt the budget did a great deal for rural people, with the increase to lengthsman scheme, extra money for drains and flooding mitigation, and subsidies for public transport.

It was pointed out that recommendation 1b mentioned Clinical Commissioning Groups but should now read the Integrated Care Board. It was also confirmed that the Public Health Ring Fenced Grant had not yet been confirmed.

A Member from outside the Cabinet understood the demand led pressures in children’s and adult’s social care, but felt that Council Tax was not the fairest way to raise money. He felt any details about the climate emergency and getting to net zero by 2050 was missing. He appreciated that additional money for areas such as railway stations and for buses was helping, but actions should be more front and centre. The Chairman wanted to reassure Cabinet that work on Net Zero was going on with the Member Advisory Panel and that work would be fed into the development of strategies. The Corporate Plan themes such as the environment needed to be fed into everything which was done at the Council.

RESOLVED that Cabinet Recommends to Council to approve the:

a)        The budget of £400.813 million set out in Appendix 1 of the agenda report;

b)       The capital programme of £432.720 million set out in Appendix 2;

c)       The Earmarked Reserves Schedule set out in Appendix 5;

d)       The Council Tax Band D equivalent for 2023/24 be set at £1,465.78 which includes £197.40 relating to the ring-fenced Adult Social Care precept, and the Council Tax Requirement be set at £317.337 million, which will increase the Council Tax Precept by 4.94% in relation to two parts:

·           2.94% 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; and

·           2.00% 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;

e)     Treasury Management Strategy set out at Appendix 6; and

f)       The Pay Policy set out at Appendix 7.

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 2023/24; 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 Integrated Care Board under Section 75 of the NHS Act 2006 (the Section 75 Agreement) for 2023/24.

(c)     approve changes in the forecast use of reserves as set out at paragraphs 3.4 to 3.7 of this report

(d)    note the Medium-Term Financial Plan set out in Appendix 4.