Agenda item

Cabinet Members will introduce their priorities and budget saving options for 2020/21 and 2021/22. 

This will include feedback following the Member day on 26 June.

Select Committee Chairmen and Minority Group Leaders will be invited to comment on the proposals.

Cabinet will be asked to agree which options will be added to the Forward Plan of Key Decisions and what further engagement will be undertaken on each option.

8.1     The Leader introduced the previously circulated report that summarised the current situation regarding government funding, the budget gap for 2020/21 and 2021/22 and proposals for Cabinet to consider ensure a balanced budget could be achieved for the period in question.  The Leader explained that Cabinet would not make any formal budget decisions today but would agree what budget options they would like officers to work up and include in the Forward Plan of Key Decisions.

8.2     Jeremy Hunt, Cabinet Member for Finance and Resources, highlighted the difficult financial challenge facing the County Council  with reduced funding and increasing demand for services.  Mr Hunt highlighted the key points in the report including the following:

·         The report assumes an annual increase of 1.99% in council tax

·         The funding gap is currently £27.9 million for 2020/21 with a further gap of £17 million for 2021/22.

·         Local Government is still waiting for the Government Green Paper on Adult Social Care

·         Much work, including mitigation of options, will be undertaken after this meeting and before any final decisions in the Autumn.

·         Feedback from the recent budget Member Day was positive and the output from that was highlighted in Appendix B of the attached report for Cabinet to consider.

8.3     Katharine Eberhart, Director of Finance & Support Services, provided a presentation highlighting the key financial information in the report.  She also highlighted the additional financial support require to support improvements in Children’s Social Services and the Fire & Rescue Service.  

8.4     Each Cabinet Member then commented on the proposed options within their portfolios in order as they were listed in the table at 2.6 and detailed in Appendix A of the report.  There comments were as follows:

·         Amanda Jupp, Cabinet Member for Adults and Health stated she could support options 1 (Review in-house residential and day care services), 3 (limit inflationary increase in fees paid to care providers) and 4 (manage demand pressures – Older People).  In relation to option 2 (review transport to care services) Mrs Jupp appreciated it could promote independence but had some reservations.  However, in relation to option 5 (Reduce housing-related support) Mrs Jupp had strong reservations.  Crawley Borough Council Chief Executive was  leading on a Task & Finish Group and she awaited the outcome of that.  Mrs Jupp also highlighted that options 5 (Reduce housing-related support) and 6 (Reduce Local Assistance Network (LAN)) were not supported by Members at the recent Budget Member Day.

·         Richard Burrett, Cabinet Member for Education and Skills explained that option 7 (Reduce post 16 support service) included options to withdraw or reduce and he would like to ask for both options to be developed for further consideration.  He noted that the withdrawal of this service had little support at the recent Member day.  In relation to option 8 (Increase Special Support Centres in schools), Mr Burrett fully supported this and noted that it was the most popular option at the recent Member Day.

·         Deborah Urquhart, Cabinet Member for Environment, stated that 90% of her portfolio budget relates to major contracts where there is little room to make savings.  In relation to Option 9 (Reduce the number of household waste recycling sites (HWRS)), Mrs Urquhart would like a full appraisal and strategy to be developed before this option was considered. In relation to Option 10 (Withdraw the mobile HWRS service) Mrs Urquhart confirmed that she would ask the affected Town and Parish Councils if they could assist with funding these services.  For option 11 (Reintroduce charging for DIY waste at HWRSs) Mrs Urquhart confirmed that government are expected to consult on this but at present are not saying that we can not charge.  Mrs Urquhart did state that she was surprised that this was generally supported at the recent Member Day.  In relation to option 12 (Reduce recycling credits) Mrs Urquhart stated that although she understood the budget pressures of District and Borough Councils she was also aware that this funding was often not used for its intended purpose, so she was happy for it to be developed as a savings option.

·         Debbie Kennard, Cabinet Member for Safer and Stronger Communities spoke in support of option 13 (review Community Hubs Library offer).  Mrs Kennard stated that they would do all they could to reduce any closures of libraries, but any such proposals would be subject to full consultation.

·         Roger Elkins, Cabinet Member for Highways and Infrastructure, stated that the majority of his budget was tied into the Streetlighting PFI and concessionary fares that had no options for saving.  Therefore, any savings would significantly affect the other areas of his portfolio that had already in recent years been subject to reductions.  Mr Elkins also highlighted that Option 14 (Reduce Highways place based services) had very low support at the recent Member Day and he also did not support this option for going forward.  Mrs Urquhart also supported Mr Elkins views as some of these services such as Rights of Way crossed into her portfolio.  In relation to options 15 (Reduce supported bus services) and 16 (Cease discretionary bus passes) Mr Elkin did raise concern about how any reduction would affect the more isolated residents.  Mr Elkins also stated that there was a Task and Finish Group currently looking at this area in more detail and he would like to await any outcome of that before progressing any proposals in this area.  He also stated that this was not a supported option at the recent Member Day. 

·         Bob Lanzer, Cabinet Member for Corporate Relations, spoke in support of option 17 (Accelerate Whole Council Design) and referred to the support it had at the recent Member Day.

·         Jeremy Hunt, Cabinet Member for Finance and Resources, referred to option 18 (increase income from fees and charges) and stated this is something we do on an annual basis and he supported it for further review.

·         The Leader confirmed that there were no proposed savings within the Children’s Services portfolio as this was protected.

8.5     The Leader then asked Katharine Eberhart to detail some suggestions made by Members at the recent Budget Member Day.  The Leader did highlight that attendance at that Member Day was only 50%.  The Leader suggested that Cabinet could ask for any of the suggestions to be worked up for further consideration and this would be discussed later in the meeting.

8.6     The Leader went on to invite comments from Select Committee Chairman.  There comments were as follows:

·         Pieter Montyn, Chairman of Performance and Finance Select Committee provided comments on some of the proposals but stated that some where his own opinion rather than those of his Committee.  He stated that in relation to Community Hubs we should consider carefully how far residents will have the travel.  This is also something that should be taken into consideration in relation to reducing the number of Household Waste Recycling sites or mobile waste sites and also that Towns and Parish Councils should be asked to help fund the mobile offer. He agreed that Housing Related Support should be one of the last areas we look to reduce.

·         Bryan Turner, Chairman of Health and Adult Social Care Select Committee (HASCSC), spoke firstly in relation to Housing related support and stated that this had been discussed in detail at HASC and there was strong support for the County Council to continue supporting this.  He stated that it was evident that partners where working closely in this area and were aware of the need to delivery savings, but he felt it was too soon to reduce this.  Mr Turner also spoke against any reduction in bus services for vulnerable residents.

·         Paul High, Chairman of Children and Young People’s Services Select Committee (CYPSCS) stated he was pleased not to see any proposals for reductions in Children’s Services.  In relation to option 8 he stated that this must be done properly to ensure the best outcomes for children.

·         Andrew Barrett-Miles, Chairman of Environment, Communities and Fire Select Committee (ECFSC) stated that he was also pleased to see no proposed reductions for the Fire & Rescue Service.  Mr Barrett-Miles was also pleased to hear the Cabinet Members view that a full strategy was required before looking to reduce HWRS.  He also supported looking at charging for DIY waste if government advise was to allow this as he was aware that all out neighbouring authorities currently do charge.  In relation to the Community Hub offer, Mr Barrett-Miles would be cautious of any library closures but would support looking at reduced hours.  In relation to the options around highways his committee would not be in support of any reductions and with regard to bus services he welcomed waiting for the Task & Finish group to report its findings.

8.7     The Leader went on to invite comments from Minority Group Leaders.  There comments were as follows:

·         Mr Michael Jones, Leader of the Labour Group, stated that his group did not support the savings proposals as they all impact on residents. He did state that he would support the use of reserves.

·         Dr James Walsh, Leader of the Liberal Democrat Group, referred to previous reductions and said that enough was enough and his group could not support the proposed options apart from a review of Fees and charges and Accelerate Whole Council Design.

8.8     The Leader thanked everyone for their input reiterated that no formal decisions would be made today.  Mr Tony Kershaw, Director of Law and Assurance explained that Cabinet were being asked to confirm for each option, whether they:

1. Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions
2. Reject the option
3. Pause the option with no further work at this time

8.9     Resolved that Cabinet agreed the following:

1.   Review in-house residential and day care services - Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

2.   Review transport to care services - Pause the option with no further work at this time.

3.   Limit inflationary increase in fees paid to care providers - Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

4.   Manage demand pressure - Older People – Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

5.   Reduce housing-related support – Reject the option

6.   Reduce Local Assistance Network (LAN) – Endorse the option for further consideration, up to £100,000, and inclusion in the Forward Plan of Key Decisions.

7.   Reduce post-16 support service – Endorse 2 options, one full one 50%, for further consideration and inclusion in the Forward Plan of Key Decisions.

8.   Increase Special Support Centres in schools –Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

9.   Reduce the number of household waste recycling sites (HWRSs) – Reject the option.

10.Withdraw the mobile HWRS service – Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

11.Reintroduce charging for DIY waste at HWRSs– Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

12.Reduce recycling credits – Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

13.Review Community Hubs Library Offer– Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

14.Reduce Highways Place Based Services - Reject the option

15.Reduce supported Bus Services - Pause the option with no further work at this time.

16.Cease Discretionary Bus Passes - Pause the option with no further work at this time.

17.Accelerate Whole Council Design - Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

18.Increase income from fees & charges – Endorse the option for further consideration and inclusion in the Forward Plan of Key Decisions.

8.9     The Leader then reverted Cabinet back to the list of suggestions put forward by Members at the recent Member Day.  There were some suggestions on that list that Cabinet asked officers to look in to and report back to Cabinet for further consideration.