Issue - meetings

The Council is asked to consider and approve the County Council budget for 2021/22, the Capital Strategy 2021-26 and the Treasury Management Strategy Statement 2021/22, in the light of a report pack by the Cabinet Member for Finance which is enclosed with the agenda.

80.1     The Cabinet Member for Finance moved the report on the Revenue Budget 2021/22, Capital Programme 2021/22 to 2025/26 and Treasury Management Strategy Statement 2021/22 (budget pack pages 1 to 176).

80.1     An amendment was moved by Cllr Walshand seconded by Cllr Lord as set out below.

Proposed changes to the Revenue Budget

Growth

Reduction

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

(a)         For the amendment – 13

Cllr Buckland, Cllr N Dennis, Cllr M Jones, Cllr Lord, Cllr Millson, Cllr O’Kelly, Cllr Oppler, Cllr Oxlade, Cllr Purchese, Cllr Quinn, Cllr Smytherman, Cllr Sudan and Cllr Walsh.

(b)         Against the amendment - 45

Cllr Acraman, Cllr Atkins, Cllr Baldwin, Cllr Barling, Cllr Barrett-Miles, Cllr Bennett, Cllr Boram, Cllr Bradbury, Cllr Bradford, Cllr Burgess, Cllr Burrett, Cllr Catchpole, Cllr Cloake, Cllr Crow, Cllr J Dennis, Cllr Duncton, Cllr Edwards, Cllr Elkins, Cllr Hall, Cllr High, Cllr Hillier, Cllr Hunt, Cllr A Jones, Cllr A Jupp, Cllr N Jupp, Cllr Kennard, Cllr Kitchen, Cllr Lanzer, Cllr Markwell, Cllr Marshall, Cllr McDonald, Cllr Mitchell, Cllr Montyn, Cllr R Oakley, Cllr S Oakley, Cllr Patel, Cllr Pendleton, Cllr Purnell, Cllr Russell, Cllr Sparkes, Cllr Turner, Cllr Urquhart, Cllr Waight, Cllr Whittington and Cllr Wickremaratchi.

(c)         Abstentions – 4

Cllr Arculus,  ...  view the full minutes text for item 80

The Cabinet is asked to endorse the County Council Budget for 2021/22, as set out in Appendix A and Annex 1, the Capital Strategy set out in Annex 2(a) and the Treasury Management Statement set out in Annex 2(b), for approval by County Council on 12 February 2021.

Scrutiny Committee Chairman and each of the main Minority Group Leaders will be invited to speak for up to three minutes on the County Council Revenue Budget for 2021/22.

The Cabinet will then discuss the report and proposals prior to taking any decision.

Following consideration of the report, Cabinet resolved to:

Endorse the County Council Budget for 2021/22, as set out in Appendix A and Annex 1, the Capital Strategy set out in Annex 2(a) and the Treasury Management Statement set out in Annex 2(b), for approval by County Council on 12 February 2021.

The call-in deadline is 2 February 2021.

63.1   Cabinet considered a report by the Director of Finance and Support Services. The report was introduced by the Cabinet Member for Finance, Cllr Jeremy Hunt, who outlined the report’s detail regarding possible future financial risks and the council’s ability to deal with those, proposals for a balanced budget, the importance of maintaining healthy reserves and the announcement of additional funding from the Government which enabled the removal or deferral of some savings options. The budget proposed to increase the core council tax rate by 1.99% and the adults’ social care precept by 3%.

63.2   Chairmen of the Performance and Finance, Fire and Rescue Service and Environment and Communities Scrutiny Committees commented on the Revenue Budget report noting that looking to the future was key.

63.3   Cllr Dr James Walsh, Leader of the Liberal Democrat Group was concerned about the savings affecting the Early Help service. Cllr Michael Jones, Leader of the Labour Group welcomed the removal of some of the savings proposals but felt this was a reprieve only. Cllr Jones was concerned about cuts to the public health budget, particularly for those residents who don’t qualify for additional support under the Care Act. He made further comments regarding the proposals for Early Years funding and adults’ social care.

63.4   Cabinet Members made the following comments in relation to the Revenue Budget and Capital Programme:

·       Significant capital projects for schools were highlighted within the Capital Programme.

·       A consultation on the removal of the Community Initiative Fund had taken place with all members and was supported in the main.

·       Investment to become carbon neutral and on renewable energy was crucial to fulfil the ambitions of the Climate Change Strategy.

·       The Ash Dieback issue would be addressed, with around 40,000 trees likely to be affected.

·       The Public Health Grant was fixed and would be used in ways to be most effective.

·       Children’s Services continued on its improvement journey with investment in key services.

·       The council maintained its commitments against the backdrop of the pandemic to provide as much support as possible to residents and communities.

63.5   Resolved – that Cabinet endorses the County Council Budget for 2021/22, as set out in Appendix A and Annex 1, the Capital Strategy set out in Annex 2(a) and the Treasury Management Statement set out in Annex 2(b), for approval by County Council on 12 February 2021.

The report is presented by the Director of Finance and Support Services.  The draft budget for 2021/22 is presented to the Committee for preview and endorsement ahead of the agreement and approval of the Budget at Cabinet on 22 January 2021 and County Council on 12 February 2021.  Any issues or concerns raised by the Committee will be considered by the Cabinet ahead of approval at County Council.

The Committee is asked to consider the report and appendices and make any comments to Cabinet to take into account when it considers the draft Revenue Budget 2021/22, draft Capital Strategy 2021/22 to 2025/26, and draft Treasury Management Strategy Statement for 2021/22.

101.1  The Committee considered the Revenue Budget 2021/22, Capital Strategy 2021/22 to 2025/26, and Treasury Management Strategy Statement 2021/22 report by the Director of Finance and Support Services (copy appended to the signed minutes).

101.2  The Leader introduced the report and highlighted the challenge in budget setting for all local authorities with the backdrop of the Covid pandemic.  The Budget is presented in the context of the Reset Plan and aims to deliver its priorities.

101.3  The Cabinet Member for Finance introduced the report and highlighted the work that has gone into balancing the budget and supporting residents in unprecedented times.  Thanks was offered to the Finance team for their hard work in a challenging timeline, and Members for their understanding of the financial limitations faced by the council.  The predicted budget shortfall in November has been mitigated by savings identified by the services, and now the provisional Government settlement has been received some of the proposed savings measures can be removed.  The revenue spend has been increased year on year by 5.2% which supports key services for residents.  Spending has been re-profiled to allocate extra funding to two priority areas, highway maintenance and supporting the council’s aim to be carbon neutral by 2030.  The funding challenge is expected to continue in 2022/23.

101.4  The Director of Finance and Support Services outlined key information to note in the budget.  Key concerns in setting the budget include the uncertainty of Government funding streams, uncertainty in long term funding of adult social care, and the ongoing effects of responding to the Covid pandemic, however the budget for 2021/22 is balanced without relying on reserves which gives strength to the council’s financial position.

101.5  The chairmen of the service scrutiny committees were asked to update the committee with any recommendations or comments from their scrutiny discussions on the budget proposals, as follows:

·       Children and Young People’s Services Scrutiny Committee (CYPSSC) chairman welcomes increased financial support for the service. Proposals for reductions in the Early Help service are out for consultation and will be further scrutinised at the appropriate time.

·       Health and Adult Social Care Scrutiny Committee (HASC) chairman noted a Task and Finish Group will be established to look at the savings in adult social care.  The committee noted concern regarding reductions to respite services and the resulting effect on families.

·       Environment and Communities Scrutiny Committee (ECSC) chairman welcomed the removal of four key savings proposals and the committee supported the business as usual savings. 

·       Fire & Rescue Service Scrutiny Committee (FRSSC) chairman noted the Fire & Rescue Service were allowed to offset their savings against the deferment of investment required to facilitate crewing arrangements.  The Cabinet Member for Fire & Rescue and Communities confirmed that this was due to significant savings having been made over the last decade and acknowledged the service requires investment to facilitate improvement.

101.6  The Committee made comments in relation to the Revenue Budget 2021/22 proposals including those that follow. It:

·       Expressed concerns regarding the significant external risks to the council’s  ...  view the full minutes text for item 101