Agenda item

Cabinet considered the 2020/21 Draft Budget and Medium-Term Financial Plan Update 2020-22.

The Leader of the Council introduced the report. He commented that the Council had grown its income by £14.5m. The Government had recognised the extra pressures facing councils and this Council would be receiving an extra grant allocation of £8.5m for children and adult social care. The Council’s income had therefore increased by £23m in total. However, the Council was facing total cost pressures of £32m.This meant that the Council would continue to need to reform and make itself more efficient and effective in line with the Council for the Future model.

The Leader added that the budget was not just aimed at protecting the most vulnerable in society but also investing in those services that the public felt needed improvement: roads and pavements, cutting congestion and improving public transport. The budget also addressed flood mitigation particularly local flooding issues and included a programme to upgrade street lighting with more efficient LED lights. A woodland planting scheme would lead to 150k trees being planted. In order to meet additional budget demands, Council Tax would need to be raised which equated to £1 per week for a Band D property. However, the proposed rate remained one of the lowest levels of council tax for county councils in the country. There would be an opportunity to scrutinise the budget prior to consideration at the Cabinet meeting in January with the final decision taken at Council in February.

The Cabinet Member for Adult Social Care commented that he was encouraged by the Government’s intention to move at pace to find a funding solution for social care issues. The budget addressed the demand-led pressures in adult social care, providing additional resources albeit not to the desired extent. One of the challenges moving forward was addressing the needs of adults with complex needs who were now living longer. 81% of the Council’s income was reliant on council taxpayers and this created a greater democratic link between them and the Council. The Local Government settlement was still awaited but he did not expect any great changes.

The Cabinet Member for Health and Well-being welcomed the additional £5m for cutting congestion as traffic issues were the main source of public complaint. In relation to street lighting, he hoped that the inefficient high-pressure sodium lights would be replaced as part of the street lighting replacement programme. The Leader of the Council added that the street lighting programme had been introduced on an incremental basis to achieve best results.

The Cabinet Member for Economy and Infrastructure highlighted the inclusion in the budget of improvements to infrastructure, particularly the investment in Worcestershire Parkway and the North Cotswold Railway Line Task Force, for which this Council acted as lead for plans to dual the rail line to establish 2 train services per hour from Worcester to London.

The Cabinet Member for Environment indicated that the LED light replacement programme included the introduction of controllable, reliable and therefore more cost-effective lighting. The planting of 150k trees was a great plus for Worcestershire with the Council acting as a community leader involving local communities and children as well as opening up other opportunities. The flood mitigation proposals would allow the Council to access other sources of funding. The Leader added that he hoped that the Council taking the lead on tree planting, would encourage others to follow.

The Cabinet Member for Highways commented that the budget included increased spending on roads, footways and pavements, buses and street lighting. It would not only maintain the existing network but increase the capacity to tackle congestion issues, in particular to improve unclassified roads and pavements. There was further funding for a footways improvement scheme to recognise the importance of ensuring footpaths were maintained to a high standard. Local councillors would be at the heart of this scheme to ensure that those footpaths in most need of repair were prioritised. The budget recognised that congestion was the public’s biggest concern and funding had been provided to allow 4 priority schemes to commence: Hoobrook Roundabout, Kidderminster, A38 near Upton, Bromsgrove Town Centre and Evesham Town Centre. A 10% increase in the bus subsidy was proposed and any efficiency savings would be added to this budget. It was also likely that the Government would receive extra funding for public transport from the Government. The street lighting budget had been increased to raise the quality, reliability and safety of the network. Funding would also be invested to maintain broken gullies.

A Member from outside the Cabinet commented that although the details of the budget would need to be examined, overall the budget was welcomed. The increase in Council Tax was necessary although it should have been implemented a number of years ago. The recognition of the funding pressures in adult social care and the additional funding for roads and footways was particularly welcomed.

A Member from outside the Cabinet welcomed the proposed funding for highways and footways improvements, particularly the Hoobrook Roundabout.  It was hoped that the bus subsidy would not only focus on services in Worcester. The Council needed to recognise the issues facing adults with learning difficulties who were experiencing dementia at an early age.

The Vice-Chairman of the Overview Scrutiny and Performance Board commented that the scrutiny programme for examining the budget was well-established and the budget would be examined in great detail. The Leader of the Council welcomed the input from scrutiny.

The Cabinet Member for Adult Social Care commented that social care was starting to move up the agenda and beginning to be recognised as an issue by the public. It had been suggested that the LGA chair a cross-party discussion on the issue. Adults with learning difficulties with early onset dementia was recognised as an issue and a report on the matter would be brought to Cabinet next year.

RESOLVED that the Cabinet:

a)    approved for consultation the draft budget set out at Appendix 1B of the report of £346.068 million which includes the proposed Transformation and Reforms programme set out in Appendix 1C to the report;

b)   approved for consultation the capital programme of £305.4 million as set out at Appendix 1D to the report;

c)    approved for consultation an earmarked reserves schedule as set out at Appendix 2 to the report;

d)   agreed that it is minded to recommend to Council in February 2020 an increase in Council Tax Precept by 3.99% in relation to two parts:

•       1.99% 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

•       2.00% 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)    approved the use of £0.750 million from the Transformation reserve to support the delivery of the redesign saving plans as set out in paragraph 4.4 of the report; and

f)     approved the updates to the 2019/20 capital programme as set out in paragraph 4.9 of the report.