Decision details

Draft Medium Term Financial Strategy 2019/20 to 2022/23, Draft Revenue Budget 2019/20, Draft Capital Strategy 2019/20 to 2023/24 and Draft Treasury Management Strategy Statement 2019/20

Decision Maker: County Council, Cabinet

Decision status: Recommendations approved

Is Key decision?: Yes

Is subject to call in?: No

Purpose:

The Budget report details the County Council’s revenue budget, the level of council tax proposed for 2019/20, the nature of its expenditure, income and savings for a balanced budget.  It will also outline the County Council’s Capital Programme to cover the five year period 2019/20 to 2023/24, which will update the programme previously agreed by County Council.

 

Cabinet will be asked to endorse the Revenue Budget and Capital Programme for approval at County Council on 15 February 2019.

Decisions:

102.1The Cabinet Member for Finance and Resources moved the report on the Draft Medium Term Financial Strategy 2019/20 to 2022/23, Draft Revenue Budget 2019/20, Draft Capital Strategy 2019/20 to 2023/24 and Draft Treasury Management Strategy Statement 2019/20.  Members also had before them a statement from the Cabinet Member for Finance and Resources on a number of changes to the revenue budget which had arisen due to a number of late notifications, together with corresponding revisions to the recommendations in the report and to Appendix 1 of Annex 1, which had been circulated.

 

102.2An amendment was moved by Dr Walsh and seconded by Mrs Millson.

 

‘This amendment to the draft budget moves that the County Council restores proposed funding cuts to essential rural and urban bus services and preventative spending on the County Council's Public Health agenda.  This amendment would allow ongoing protection for the bus subsidy budget and £200,000 of the deplorable central government cut in Public Health funding.  It would also make good the remainder of the Public Health cut for 2019/20.  In addition the amendment protects Housing support in 2019/20 which would allow time for District and Borough partners to implement new partnership arrangements.

 

Revenue budget

 

2019/20

 

Budget reduction

Increased budget

Transfer to/from(-) reserves 2019/20

£m

£m

£m

Ongoing changes to the budget

 

 

 

Restore cut to bus subsidy budget

 

0.300

 

Partially restore cut to Public Health budget

 

0.200

 

30% reduction in Communications budget

0.500

 

 

 

 

 

 

Total ongoing changes

0.500

0.500

0.000

 

 

 

 

One-off changes to budget

 

 

 

Restores £1.74m cut to Housing Support budget (one year only)

 

1.740

 

Restores remainder of cut to Public Health budget (one year only)

 

0.250

 

Contribution from Social Care Support reserve (Opening balance £5.243m, balance after proposal £3.253m)

 

 

1.990

Total one-off changes

0.000

1.990

1.990

 

102.3The amendment was put to a recorded vote under Standing Order 3.36.

 

(a)     For the amendment – 12

 

Dr Dennis, Mr Jones, Ms Lord, Mrs Millson, Dr O’Kelly, Mr Oppler, Mr  Oxlade, Mr Purchese, Mr Quinn, Mrs Smith, Mr Smytherman and Dr Walsh.

 

(b)     Against the amendment - 40

 

Mr Acraman, Lt Cdr Atkins, Mr Barling, Lt Col Barton, Mr Boram, Mr Burrett, Mr Catchpole, Mr Cloake, Mr Crow, Mrs Duncton, Mr Edwards, Mr Elkins, Ms Flynn, Ms Goldsmith, Mrs Hall, Mr High, Mr Hillier, Mr Hunt, Mrs Jones, Mrs Jupp, Mr Jupp, Ms Kennard, Mrs Kitchen, Mr Lanzer, Mr Marshall, Mr Mitchell, Mr Montyn, Mr R J Oakley, Mr S J Oakley, Mr Parikh, Mr Patel, Mrs Pendleton, Mr Petts, Mrs Purnell, Mr Simmons, Mr Turner, Mrs Urquhart, Mr Waight, Mr Whittington and Mr Wickremaratchi.

 

(c)     Abstentions – 6

 

Mrs Arculus, Mr Barnard, Mr Bradford, Mrs Dennis, Mr Lea and Mrs Sparkes.

 

102.4The amendment was lost.

 

102.5Labour amendment A (Supporting people not cuts (One-off changes to the budget)) was moved by Mr Jones and seconded by Mr Oxlade.

 

‘This proposed amendment protects vulnerable adults by reversing the cuts affecting the homeless, working age adults with learning difficulties and those in crisis over the next two to three years.  It draws on the social care grant provided by central government.

 

 

Revenuebudget

 

Growth

£m

Growth

£m

Growth

£m

Total

£m

One-offchangesto budget

 

 

 

 

Re-instatetheMIGfundingfor thenextthreeyears(19/20,20/21and21/22)

0.300

0.300

0.300

0.900

PartiallyreverseSupportedHousingcut

1.000

1.000

1.000

3.000

Reversecut toLocalAssistanceNetwork

0.600

0.600

 

1.200

Total one-offchanges

1.900

1.900

1.300

5.100

Tobe fundedfromtheone offsocialcaregrantreceivedin2019/20for socialcareneeds.

Balanceatthebeginningof theyear                                            5.234

Fundingutilisedinamendment                                                    5.100                                                                                                   

Balanceremaining- tobe heldasa contingency                           0.134

 

102.6The amendment was put to a recorded vote under Standing Order 3.36.

 

(a)     For the amendment – 11

 

Dr Dennis, Mr Jones, Ms Lord, Mrs Millson, Dr O’Kelly, Mr Oxlade, Mr Purchese, Mr Quinn, Mrs Smith, Mr Smytherman and Dr Walsh.

 

(b)     Against the amendment - 41

 

Mr Acraman, Lt Cdr Atkins, Mr Barling, Lt Col Barton, Mr Boram, Mrs Bridges, Mr Burrett, Mr Catchpole, Mr Cloake, Mrs Duncton, Mr Edwards, Mr Elkins, Ms Flynn, Ms Goldsmith, Mrs Hall, Mr High, Mr Hillier, Mr Hunt, Mrs Jones, Mrs Jupp, Mr Jupp, Ms Kennard, Mrs Kitchen, Mr Lanzer, Mr Marshall, Mr Mitchell, Mr Montyn, Mr R J Oakley, Mr S J Oakley, Mr Oppler, Mr Parikh, Mr Patel, Mrs Pendleton, Mr Petts, Mrs Purnell, Mr Simmons, Mr Turner, Mrs Urquhart, Mr Waight, Mr Whittington and Mr Wickremaratchi.

 

(c)     Abstentions – 7

 

Mrs Arculus, Mr Barnard, Mr Bradford, Mr Crow, Mrs Dennis, Mr Lea and Mrs Sparkes.

 

102.7The amendment was lost.

 

102.8Labour amendment B (Invest to Support – (Capital and Revenue)) was moved by Mr Jones and seconded by Mr Oxlade.

 

‘This proposed amendment reverses the investment in unproven LED street-lighting technology and cancels Operation Watershed, investing instead in 300 extra care beds for older people and increased commercial property opportunities.

 

The revenue impact of this is an on-going increase the base budget of £0.820 from 2021/22 going forward.

 

The amendment proposes also proposes ongoing changes to the revenue budget from 2019/20 by making back office cuts and instead reversing the cut to bus subsidies, re-instating the cut to the community initiative fund and investing  more in re-ablement and in admin support for social workers.  It also seeks to deliver an accreditation scheme to encourage more people to work in the care industry.

 

Capital Programme

 

 

Remove

£m

Add

£m

Changesto thefive-yearCapitalProgramme

 

 

Removefundingfor LEDstreetlighting

22.000

 

IncreaseInvestmentPropertyfund

 

13.200

Deliverup to300 extra-carebedsfor olderpeople,preferablyusingexisting CountyCouncilassetsidentifiedandremodelledfor thispurpose.Gross savings range  £0.75m- £1.25mfrom2021/22

 

10.000

CeaseOperationWatershed

1.200

 

TotalCapitalProgramme

23.200

23.200

 

OngoingRevenueImpactarisingfrom ChangestoCapital Programme

2019/20

2020/21

2021/22

 

Growth

Savings

Growth

Savings

Growth

Savings

 

£m

£m

£m

£m

£m

£m

Removalof LEDstreet-lightingprogramme

 

0.020

0.140

 

0.320

 

IncreasedinvestmentinPropertyFund

 

0.120

 

0.120

 

0.120

CeasingOperationWatershed

 

 

 

0.020

 

0.020

Incomefromextra-careinvestment

 

 

 

 

 

1.000

TotalRevenueChangesfromCapitalProgramme

0.000

0.140

0.140

0.140

0.320

1.140

 

Revenue Budget

 

ChangestoRevenueBudget 2019/20

 

 

 

Growth

£m

Savings

£m

Ongoingchangestothebudget

 

 

Reversecut tobus subsidies

0.300

 

Reversecut toCommunityInitiativeFund

0.140

 

Additionalinvestmentinre-ablementservicestodeliverbetteroutcomes forelderlyresidentsandpreventfurtherresidentialcareplacements

 

0.250

 

Providefor dedicatedadminsupportfor socialworkersandOccupational Therapiststoenablethemtospendmoretimeusingtheirprofessionalskills to improveoutcomesfor elderlyresidentswhichwillalsopreventfurther residentialcareplacementsandimproverecruitmentandretentionratesfor thesedifficulttorecruitpositions

 

 

 

0.280

 

Additionalinvestmentandsupporttodeveloppathwaysor anaccreditation schemefor careworkersintheCounty

0.250

 

Deletethepost ofExecutiveDirectorCommunitiesandPublicProtection andhavetheChiefFireOfficerfulfilthisrole

 

 

0.200

50% reductionincosts associatedwiththePolicyandCommunications Team- toincludereductionstothegraphicdesignandprintbudget

 

0.850

50% ReductioninLieutenancybudget

 

0.020

50% Reductionin Chairmansbudget

 

0.010

Savingfromcapitalprogrammechanges(one yearonly)

 

0.140

Total ongoingchanges

1.220

1.220

 

102.9  The amendment was put to a recorded vote under Standing Order 3.36.

 

(a)   For the amendment – 4

 

Mr Jones, Mr Oxlade, Mr Quinn and Mrs Smith.

 

(b)   Against the amendment - 43

 

Mr Acraman, Mrs Arculus, Lt Cdr Atkins, Mr Barling, Lt Col Barton, Mr Boram, Mr Bradford, Mr Burrett, Mr Catchpole, Mr Cloake, Mr Crow, Mrs Dennis, Mrs Duncton, Mr Edwards, Mr Elkins, Ms Flynn, Ms Goldsmith, Mrs Hall, Mr High, Mr Hillier, Mr Hunt, Mrs Jones, Mrs Jupp, Mr Jupp, Ms Kennard, Mrs Kitchen, Mr Lanzer, Mr Marshall, Mr Mitchell, Mr Montyn, Mr R J Oakley, Mr S J Oakley, Mr Parikh, Mr Patel, Mrs Pendleton, Mr Petts, Mrs Purnell, Mr Simmons, Mr Turner, Mrs Urquhart, Mr Waight, Mr Whittington and Mr Wickremaratchi.

 

(c)   Abstentions – 11

 

Mr Barnard, Dr Dennis, Mr Lea, Ms Lord, Mrs Millson, Dr O’Kelly, Mr Oppler, Mr Purchese, Mr Smytherman, Mrs Sparkes, and Dr Walsh.

 

102.10The amendment was lost.

 

102.11Labour amendment C (Supporting staff not consultants (Re-purposing the Service Transformation Fund)) was moved by Mr Jones and seconded by Mr Oxlade.

 

This proposed amendment demonstrates that £1m a year could be saved by this Council if it used the expertise of its existing staff instead of employing external consultants.  Part of that money would be used to improve business processes and technology for our hard-working social workers to enable them to spend more time doing what they are trained to do - helping those in need of their support. It also sees the Service Transformation Fund increase by £1.5m over two years.

 

 

Revenuebudget

 

2019/20

2020/21

2021/22

 

 

Growth

£m

Growth

£m

Growth

£m

Growth

£m

RepurposeServiceTransformationFund

 

 

 

 

Delivertransformationalactivitythroughincreasedstaffingratherthan consultantsreducingthedrawonServiceTransformationfund

 

1.000

1.000

2.000

Investmentin transformationimprovementprogrammeenablingimproved businessprocessesandtechnologyforsocialworkersreducingthe administrationstrainontheirroles

 

0.500

 

0.500

IncreaseinbalanceofServiceTransformationFund

 

0.500

1.000

1.500

 

102.12The amendment was put to a recorded vote under Standing Order 3.36.

 

(a)   For the amendment – 4

 

 Mr Jones, Mr Oxlade, Mr Quinn and Mrs Smith.

 

(b)   Against the amendment - 42

 

Mr Acraman, Lt Cdr Atkins, Mr Barling, Lt Col Barton, Mr Boram, Mr Bradford, Mrs Bridges, Mr Burrett, Mr Catchpole, Mr Cloake, Mr Crow, Mrs Duncton, Mr Edwards, Mr Elkins, Ms Flynn, Ms Goldsmith, Mrs Hall, Mr High, Mr Hillier, Mr Hunt, Mrs Jones, Mrs Jupp, Mr Jupp, Ms Kennard, Mrs Kitchen, Mr Lanzer, Mr Marshall, Mr Mitchell, Mr Montyn, Mr R J Oakley, Mr S J Oakley, Mr Parikh, Mr Patel, Mrs Pendleton, Mr Petts, Mrs Purnell, Mr Simmons, Mr Turner, Mrs Urquhart, Mr Waight, Mr Whittington and Mr Wickremaratchi.

 

(c)   Abstentions – 13

 

Mrs Arculus, Mr Barnard, Mrs Dennis, Dr Dennis, Ms Lord, Mrs Millson, Dr O’Kelly, Mr Oppler, Mr Lea, Mr Purchese, Mr Smytherman, Mrs Sparkes and Dr Walsh.

 

102.13The amendment was lost.

 

102.14The revised recommendations were put to a recorded vote under Standing Order 3.36.

 

(a)   For the recommendations 42

 

Mr Acraman, Lt Cdr Atkins, Mr Barling, Mr Barnard, Lt Col Barton, Mr Boram, Mr Bradford, Mr Burrett, Mr Catchpole, Mr Cloake, Mr Crow, Mrs Duncton, Mr Edwards, Mr Elkins, Ms Flynn, Ms Goldsmith, Mrs Hall, Mr High, Mr Hillier, Mr Hunt, Mrs Jones, Mrs Jupp, Mr Jupp, Ms Kennard, Mrs Kitchen, Mr Lanzer, Mr Marshall, Mr Mitchell, Mr Montyn, Mr R J Oakley, Mr S J Oakley, Mr Parikh, Mr Patel, Mrs Pendleton, Mr Petts, Mrs Purnell, Mr Simmons, Mrs Smith, Mr Turner, Mrs Urquhart, Mr Whittington and Mr Wickremaratchi.

 

(b)   Against the recommendations - 10

 

Dr Dennis, Mr Jones, Mrs Millson, Dr O’Kelly, Mr Oppler, Mr Oxlade, Mr Purchese, Mr Quinn, Mr Smytherman and Dr Walsh.

 

(c)   Abstentions – 7

 

Mrs Arculus, Mrs Bridges, Mrs Dennis, Mr Lea, Ms Lord, Mrs Sparkes and Mr Waight.

 

102.15The revised recommendations were carried as set out below.

 

102.16Resolved –

 

That, taking account of the priorities contained in the approved West Sussex Plan, Medium Term Financial Strategy, the Local Government Finance Settlement and the results of internal and external consultation, the following items be approved:

 

(1)

An increase in council tax in 2019/20 comprising:

·         2.00% for Adults’ Social Care, plus

·         2.99% to support other General Fund services

·         making a total increase of 4.99%

(2)

Net revenue expenditure in 2019/20 of £575.469m (as set out in paragraph 5.1 and Appendix 1).

(3)

(a)   Capital Strategy, setting out capital expenditure and proposed method of financing for the core programme and the income generating initiatives (which will be subject to their own business cases) for the period 2019/20 to 2023/24, as set out in Annex 2(a).

(b)   Treasury Management Strategy Statement 2019/20, as set out in Annex 2(b).

 

(c)    Prudential Indicators, as set out in Annex 2(c).

(4)

The Director of Finance, Performance and Procurement’s assessment of the robustness of estimates and adequacy of reserves (paragraph 6.1).

(5)

The following amounts be approved for the financial year 2019/20 in accordance with Section 42A of the Local Government Finance Act 1992:

 

(a)

That the budget requirement to meet net expenditure of the County Council for the financial year 2019/20 is £575.469m, and the council tax requirement for 2019/20 is £459.941m.

 

(b)

That the following sums be payable for the year into the County Council’s revenue fund:

 

 

Business Rates Retention Scheme – County Council

£85.226m*

 

 

Business Rates Retention Scheme – 75% Business Rates Pilot

£19.141m

 

 

New Homes Bonus Grant

£3.933m

 

 

Social Care Support Grant

£5.243m

 

 

Net surplus from District and Borough Collection Funds

£1.985m*

 

(c)

The council tax base for the year 2019/20 is the aggregate amount calculated by the billing authorities to which the County Council issues precepts totalling 332,430.70Band D equivalents.

 

(d)

The amount of council tax being the budget requirement at 5(a) above, less the amounts receivable in 5(b) above, all divided by the council tax base at 5(c) above, shall be £1,383.57 to the nearest penny for Band D.

 

(e)

The amount of council tax payable for dwellings listed in a particular valuation band, calculated in accordance with the proportion set out in Section 5(1) of the Act, shall be as follows:

 

 

Valuation Band

Amount

Valuation Band

Amount

 

 

A

£922.38

E

£1,691.03

 

 

B

£1,076.11

F

£1,998.49

 

 

C

£1,229.84

G

£2,305.95

 

 

D

£1,383.57

H

£2,767.14

 

(f)

That the district councils be requested to make payments totalling £459.941m to West Sussex County Council of sums due under precepts calculated in proportion to their council tax Band D equivalents as follows:

 

 

Adur District Council

£29,324,766.15

 

 

Arun District Council

£84,786,553.17

 

 

Chichester District Council

£73,799,070.37

 

 

Crawley Borough Council

£48,724,216.19

 

 

Horsham District Council

£86,040,067.59

 

 

Mid Sussex District Council

£83,993,075.78

 

 

Worthing Borough Council

£53,273,394.35

 

(g)

That the district councils be required to make payments of precept by equal instalments of the above sums due on or before:

 

 

5 April 2019

7 May 2019

5 June 2019

 

 

5 July 2019

5 August 2019

5 September 2019

 

 

7 October 2019

5 November 2019

5 December 2019

 

 

6 January 2020

5 February 2020

5 March 2020

 

(h)

Additionally, it is noted that payments be made by the district and borough councils (or to them) in respect of the estimated surplus/(deficit) on their collection funds on 31 March 2019:

 

 

 

Council Tax

Business Rates*

 

 

Adur District Council

(179,583.56)

(160,217.80)

 

 

Arun District Council

243,000.00

(102,984.90)

 

 

Chichester District Council

(165,877.00)

5,963.20

 

 

Crawley Borough Council

278,109.43

20,485.00

 

 

Horsham District Council

1,562,000.00

(3,420.20)

 

 

Mid Sussex District Council

592,900.00

111,557.00 

 

 

Worthing Borough Council

(51,768.65)

(165,585.60)

 

 

 

*     To avoid late changes to the budget, the abovechanges of funding (in 5(b) and 5(h)) will be applied to the Budget Management Reserve.

 

102.17With reference to the LED street lighting project, Mr Hunt reminded members that the matter could be examined by the appropriate Select Committee.

Publication date: 28/02/2019

Date of decision: 15/02/2019

Decided at meeting: 15/02/2019 - County Council

Accompanying Documents: