Agenda item

The Cabinet considered the 2017-18 draft Budget and Council Tax for consultation including proposals for a number of savings as well as plans for investment to improve roads and pavements and to tackle congestion.  The details were set out in the report and its Appendices.

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

(a)    The Leader of the Council introduced the report and commented that the draft Budget and Council Tax proposals built on the work carried out throughout the year. The financial settlement and strategic grant was awaited from the Government. The Budget would now be the subject of consultation before the final proposals would be brought to Cabinet on 2 February and for determination by Council on 9 February. The proposals had been based on what people said was important in Worcestershire and what needed improving. Vulnerable adults and children and maintaining highways had been identified as their main priorities with roads, pavements and congestion needing improvement. The Budget had been designed around the aspirations set out in the Corporate Plan. It was based on affordability but it was clear that Council Tax needed to be raised by 2% to fund social care and a further 0.94% to invest in priorities identified by the public. There was a balance to be struck between the need to raise Council Tax and make efficiencies. Efficiencies were being made but this Council had one of the lowest County Council precepts in the country. The proposed increase still represented value for money. The Council sought to resource the One Worcestershire approach and revaluate it approach to collaboration with partners; 

(b)     This budget was about development of services not cutting service provision. The Council had managed the budget as well as possible despite a number of constraints. As a result the Council was able to increase income to enable it to be self-sufficient and make additional funds available for adult social care and investment in towns and infrastructure in the County. The Council was doing things better and finding innovative ways of working. The Council had been successful at getting in revenue grants. The Council was open to suggestions for improvement; 

(c)     This was a budget for growth that responded to the feedback from the electorate in relation to concerns about the standard of the roads and pavements, and keeping adults and children safe. The £14m investment in infrastructure, £6m in pavement improvements and additional £1m for road maintenance was welcomed. As the economy grew with more jobs created and more houses built, it was vital to invest in the transport infrastructure to keep people moving. A Council Tax increase was inevitable in the short term albeit kept to a minimum;

(d)    The Learning and Library Service had been able to identify savings without closing any libraries unlike in many areas in the country. Bewdley Library had been reopened in the local doctor's surgery. Job Centre Plus had agreed to move into Redditch and Kidderminster Libraries with their own dedicated space. The investment in a number of areas in Malvern Hills, including the Driving Home initiative, pavement improvements, Malvern Science Park and Malvern Town Centre was welcomed;

(e)     The additional funding of £5m for addressing congestion in the County was particularly significant and responded to the feedback from local residents. However, it was recognised that a lot of work still needed to be done to improve matters; 

(f)      A number of achievements had been made in connection with the Council's Open for Business Policy and work was ongoing on a number of projects including the Southern Link Road. It was hoped to increase income to provide investment in the Malvern Hills Science Park expansion, Worcester Six, the Worcester Parkway development, public realm work and the second phase for Tenbury, as well as leveraging more private finance to help the public purse;

(g)    A Member from outside the Cabinet commented that the Council was very selective about what it listened to. There was no reference to concerns expressed about the lack of youth provision, closure of Children's Centres, time spent on Home Care, library hours reductions and the removal of asbestos from schools. The Council will have increased Council Tax by 7% over two years which had not been matched by wage increases. Funds had been wasted on unnecessary journey time signs in Hoobrook, Kidderminster;     

(h)    The Leader of the Council commented that the Council would listen to any suggestions for improving services - but it had to balance its books. The Council had to take a prudent approach to balancing its finances. If additional funds were required in a particular service area, they had to be matched by a reduction elsewhere. It was unrealistic for the Council not to make savings, not to use the private sector, not to make efficiencies or reform, and not to increase income or Council Tax; and

(i)     The Council's approach was sensible and prudent and allowed it, amongst other things, to improve the safeguarding of children by reducing the case loads of social workers.

RESOLVED:  that

a)    the draft budget be approved for consultation as set out at Appendix 3, which includes proposed changes for income generation and expenditure budgets that are currently being consulted upon arising from the FutureFit programme set out in Appendix 5, a number of which have already been subject to detailed Cabinet and Scrutiny reports;

b)    the plan to address a forecast savings requirement of £2.9 million as a result of updating the Medium Term Financial Plan (MTFP) taking account of Central Government's Autumn Statement be endorsed and presented for approval within the February 2017 Cabinet and Full Council reports;

c)    an investment of £1 million in the Road Maintenance budget, £6 million over two years for Pavement Improvements, £5 million for Cutting Congestion and a £2 million extension to the existing Town Centre Improvements programme be endorsed following residents feedback on the importance of improving roads, pavements and tackling congestion in support of the Council's Open for Business priority;

d)    whilst the full detail of the provisional Local Government Finance Settlement is expected to be released in late December 2016 which will include the multi-year financial settlement deal agreed with Central Government, it is noted that the County Council is still likely to be awaiting confirmation of around £90 million of specific grant income and any significant updates will be presented at the February 2017 Cabinet meeting;

e)    the view that the County Council will continue to address financial challenges in future years be endorsed; and

f)     the Cabinet agrees that it is minded to recommend to Full Council in February 2017 an increase in Council Tax Precept by 2.94% 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

·      2% Adult Social Care Precept ring-fenced for Adult Social Care services in order to contribute to existing cost pressures in 2016/17 due to Worcestershire's ageing population.