Issue - meetings

The Council is asked to consider and approve the draft Medium Term Financial Strategy 2019/20 to 2022/23, the draft revenue budget for 2019/20, the draft Capital Strategy 2019/20 to 2023/24 and the draft Treasury Management Strategy Statement 2019/20 in the light of report by the Cabinet Member for Finance and Resources.  Annex 1, the budget pack and portfolio budget pages, have been printed separately and are enclosed with the agenda.

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.

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  ...  view the full minutes text for item 102

Report by Director of Finance, Performance and Procurement. 

The attached report sets out the Medium Term Financial Strategy (MTFS) 2019/20 to 2022/23, the Revenue Budget 2019/20, the Capital Strategy 2019/20 to 2023/24 and the Treasury Management Strategy Statement 2019/20.

The Chairman of the Performance and Finance Select Committee has been invited to join the meeting for this item.  A summary of the comments and recommendations made by the Select Committee at its meeting on 17 January 2019 on the draft budget proposals is attached. 

The Cabinet is asked to endorse the Medium Term Financial Strategy 2019/20 to 2022/23,  Revenue Budget 2019/20, Capital Strategy 2019/20 to 2023/24 and Treasury Management Strategy Statement 2019/20 for endorsement by County Council on 15 February 2019. 

Following consideration of the report at its meeting on 29 January 2019, the Cabinet resolved to endorse the Medium Term Financial Strategy 2019/20 to 2022/23, Revenue Budget 2019/20, Capital Strategy 2019/20 to 2023/24 and Treasury Management Strategy Statement 2019/20, subject to the amendments outlined in Annex 6, for endorsement by County Council on 15 February 2019.

The call-in deadline is 7 February 2019.

4.    The Cabinet considered a report by the Director of Finance, Procurement and Performance setting out the Medium Term Financial Strategy 2019/20 to 2022/23, Revenue Budget 2019/20, Capital Strategy 2019/20 to 2023/24 and Treasury Management Strategy Statement 2019/20 (copy appended to the signed version of the minutes).  The report was introduced by Louise Goldsmith, Leader, who highlighted that this was a strong budget set in a difficult financial climate.  Proposed savings adjustments were set out in Annex 6 in response to the issues raised by the service Select Committees.

5.  Jeremy Hunt, Cabinet Member for Finance and Resources highlighted that the aim of the budget was to deliver the key priorities as set out in the West Sussex Plan.  Mr Hunt highlighted the key points in the report including the following:

·         The additional one off funding announced in the Autumn Budget was welcomed, however it did not address the long term funding issues. 

·         The removal of the Revenue Support Grant deficit and the confirmation of the 75% Business Rate Retention scheme for 2019/20 were welcome news. 

·         The increase in the referendum limit for Council Tax by a further 1% was a key component to help achieve a balanced budget for 2019/20. 

·         The report confirmed further investment in the Adults and Health and Children and Young People budgets.

·         Thanked the Performance and Finance Select Committee for their review and endorsement of the Budget and the Service Select Committees for reviewing the proposals.  Adjustments to the savings had been presented in Annex 6 as a direct response to the concern raised by the Select Committees. 

·         The Capital Strategy set out how the Capital Programme supported the West Sussex priorities, and confirmed that the borrowing envelope remained the same as the previous year. 

·         Despite the current challenges, the County Council was in a sound financial position and was still providing quality services and increasing funding in critical services for the benefit of residents. 

·         Highlighted the need for the government to provide adequate and fair funding in the future. 

6.  Katharine Eberhart, Director Finance, Procurement and Performance highlighted the robust levels of reserves, and that the County Council continued to be in a strong position compared to other County Councils.  It was important to retain financial resilience by maintaining this level of reserves and not use them to sustain the budget. The report was presenting a forward looking, affordable Capital Programme.  The amendments as outlined in Annex 6 included the introduction of a 750k Transitional Fund to support joint initiatives to support the homeless. 

7.   Pieter Montyn, Chairman of Performance and Finance Select Committee, highlighted the following points from the feedback from the Select Committee on 17 January 2019 and the all Member Day on 9 January 2019:

·         Members raised concern of the unintended consequences of savings and requested further visibility of the impact assessments for the saving proposals.

·         Welcomed the continuing lobbying of government for fairer funding.

·         Welcomed the additional proposals as set out in Annex 6 and that these would be well  ...  view the full minutes text for item 3