Agenda item

To consider the reports of the Cabinet and to receive answers to any questions asked on those reports as follows:

a)    Report of Cabinet – Matters which require a decision by Council (Yellow Pages); and

b)    Report of Cabinet – Summary of decisions taken (White Pages).

Adult Social Care: Increased Funding

Councils would receive an additional and one-off £2 billion over the next three years for social care, with £1 billion of this to be provided in 2017/18. The County Council's allocation of the additional monies was as follows:

·         2017/18 - £10.1m

·         2018/19  - £6.8m

·         2019/20 - £3.4m

The additional funding was one off to be spent on adult social care and used for the purposes of meeting adult social care needs, supporting reducing pressures on the NHS and stabilising the social care provider market.

Schools Maintenance

An additional £216 million investment in school maintenance is to be provided nationally to improve the condition of the school estate. At present the specific allocation to the County Council is not known.

Extended rights to free travel

Central Government announced an increase in the entitlement to the rights for free travel to some schools. Further detail on how this scheme would operate and the grant that would be made available to the County Council to support this additional expenditure had not been provided yet. Confirmation had also not been provided at the point of writing this report of the existing grant award.

Infrastructure and Transport Investment

Central Government provided more details on the £23 billion National Productivity Improvement Fund (NPIF) announced in the Autumn Statement in 2016. The Budget papers included further details of how the fund will be invested including:

·         The launch of a £690m fund to tackle urban congestion. The Budget papers stated that this funding would be “competitively allocated to local authorities”. The County Council would be providing an application to Central Government for a share of this funding

·         Confirmation that the County Council would receive £2.7 million from the Regional allocations within the previously announced £220 million NPIF investment for pinch points on the strategic road network within Worcestershire.

Local Business Rates Reliefs

Central Government would provide £300 million over four years to support those businesses most affected by the revaluation of business rates, due to take effect from April 2017. District Councils within Worcestershire had been allocated £1.8 million. Central Government has issued a consultation on how the scheme should be implemented.

Following the announcement of the Midlands Engine Strategy on 9 March 2017, each LEP within the Midlands Engine received formal notification of its allocation for 2017/2018 – 2020/2021. For Worcestershire's LEP this equated to the allocation of an additional grant totalling £17.5 million for the following projects:

·         A38, Bromsgrove - £7.5 million

·         Pershore Northern Link Road - £5 million

·         Engineering Faculty at Heart of Worcestershire College - £4 million

·         Churchfields, Kidderminster - £1 million

This brought the total funding for Worcestershire's LEP from the 3 growth deal schemes to £71.7 million.

Central Government has confirmed that each LEP will continue to receive £0.5 million of core funding. This provided a base level of funding for all LEPs to cover overheads and running costs. This core funding for 2017-2018 was supported by matched funding from local partners including District Councils and the County Council.

The Secretary of State for Business, Energy and Industrial Strategy ("BEIS") had confirmed the allocation of £0.2 million to the County Council, as Accountable Body for Worcestershire's LEP for the "Growth Hub".

In the ensuing debate, the following principal points were raised:

·         The proposals for funding of the improvements to the A38 in Bromsgrove through the Local Growth Deal 3 showed that the Council's transport strategy did not align with the local development plan policies for Bromsgrove. In addition, Bromsgrove District Council had withdrawn their support for LTP4. The residents of Bromsgrove had expressed their wish for a new bypass to the west of the town rather than improvements to the A38

·         The Leader of the Council responded that the improvement to the A38 was a key project for addressing infrastructure requirements in the area in support of the Strategic Economic Plan (SEP). The project and SEP had been supported by the Worcestershire LEP, local MPs, district councils and the business community as part of the Strategic Economic Plan. The LTP4 was a separate issue and was currently out for consultation.

RESOLVED that the changes being made to the 2017 County Council Budget as a result of Central Government's Budget 2017 be approved and that the cash limits are updated accordingly.