Agenda item

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

 

Ongoing changes to the revenue budget	2021/22	2022/23
Transitional Funding to enable the Children and Family Centres, Youth and Find It Out centres to remain open to support families and young people coming out of the pandemic	0.550	0.400
Transitional Funding to enable the Shaw day services to remain open for current users post pandemic until such time as satisfactory alternative provision has been put in place for the service users	0.375	0.000
Resource 2 additional posts within the highways team to facilitate work in more walking and cycling within communities, one post in the cycling team and the other in the Rights of Way team	0.080	0.000
Formally ring-fence the £300k in the highways budget allocated to Rights of Way maintenance and supplement this sum with a further £100k	0.100	0.000
Funding to deliver additional mental health support provision for children and young people by funding an additional mental health support team for two academic years and increasing the number of emotional literacy support assistants to ensure there is one in every school	0.429	-0.034
Total	1.534	0.366

 

Reduction

 

Ongoing changes to the revenue budget	2021/22	2022/23
Increased discretionary fees and charges by 3%	0.600	0.000
40% reduction to the Communications budget spread over two years	0.300	0.200
Intelligence & Performance (6% reduction to budget)	0.080	0.000
HR & Organisational change (3% reduction to budget spread over two years)	0.080	0.080
Policy Team (21% reduction to budget)	0.060	0.000
Executive PAs (24% reduction spread over two years)	0.100	0.050
Finance (3% reduction to budget)	0.160	0.000
Customer experience (8% reduction to budget spread over two years)	0.080	0.040
Apply a 25% reduction to the Special Responsibility allowances for members	0.088	0.000
Total	1.548	0.370
Budget Surplus	0.014	0.004

 

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, Cllr Brunsdon, Cllr Lea and Cllr Magill.

 

80.2     The amendment was lost.

 

80.3     An amendment was moved by Cllr M Jones and seconded by Cllr Oxlade as set out below.

 

Revenue - Changes to Revenue Budget

 

Growth

 

Growth:	2021/22 £m	2022/23 £m	2023/24 £m
Reverse the proposed closures of children and family centres, youth and find it out centres	0.550	0.400	0.000
Reverse the Public Health Grant savings	0.370	0.088	0.000
Reverse the CIF grant budget cut and officer resource	0.175	0.000	0.000
Reverse proposed increased top slice of the Early Years DSG	0.225	0.225	0.000
Total Growth	1.320	0.713	0.000

 

Reduction

 

Reduction:	2021/22 £m	2022/23 £m	2023/24 £m
Reduce the Special Responsibility Allowances payable to members who hold specific roles by 25%	0.088	ongoing	ongoing
50% reduction in the Communications budget	0.660	ongoing	ongoing
50% reduction in the Lieutenancy budget	0.031	ongoing	ongoing
50% reduction in the Policy budget	0.141	ongoing	ongoing
10% across the board senior management post reduction (Executive Directors/Directors/Heads of Service)	0.400	ongoing	ongoing
Reduction Support Services budget	0	0.193	ongoing
Revenue impact from not borrowing to fund the construction of the proposed Retail Park on the Broadbridge Heath depot site	0	0.150	-0.227
Savings on capital borrowing as a result of selling the Broadbridge Heath depot site and using the capital receipts to finance the capital programme	0	0.080	0.080
Revenue benefits from re-purposing some of the Chichester estate (Northleigh/the Grange) to deliver housing using permitted development rights	0.000	0.090	0.090
Savings on capital borrowing as a result of selling existing council assets and using capital receipts to finance the capital programme	0.000	0.200	0.120
Total Reduction	1.320	0.713	0.063
Total ongoing changes to the revenue budget	0.000	0.000	0.063

 

Capital:

 

Reduction in Capital Programme:	2021/22 £m	2022/23 £m	2023/24 £m
Cancellation of the proposed Broadbridge Heath Retail Park	0.740	7.500	7.605
Total	0.740	7.500	7.605

 

Estimated Changes to Capital Receipts	2021/22 £m	2022/23 £m	2023/24 £m
Sell of surplus assets	0.000	5.000	3.000
Capital receipts as a result of cancelling the development of the proposed retail park and the sale of the Broadbridge Heath depot site	4.000	0.000	0.000
Capital receipts as a result of re-purposing some of the Chichester estate (Northleigh/ the Grange) to deliver housing using permitted development rights	0.000	4.500	0.000
Total	4.000	9.500	3.000

 

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

 

(a)         For the amendment – 15

 

Cllr Brunsdon, Cllr Buckland, Cllr N Dennis, Cllr M Jones, Cllr Lea, 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 – 46

 

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 Magill, 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 – 1

 

Cllr Arculus.

 

80.5     The amendment was lost.

 

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

 

(a)         For the recommendations – 48

 

Cllr Acraman, Cllr Arculus, 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 Lea, Cllr Magill, 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.

 

(b)         Against the recommendations – 10

 

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

 

(c)         Abstentions – 4

 

Cllr Brunsdon, Cllr M Jones, Cllr Oxlade and Cllr Quinn.

 

80.1     The recommendations were carried.

 

80.2     Resolved –

 

That, taking account of the priorities contained in the West Sussex Reset Plan, the Medium Term Financial Strategy and the Provisional Local Government Finance Settlement and noting the Director of Finance and Support Services’ assessment of the robustness of estimates and adequacy of reserves (Section 6), the following items be approved:

 

(1)        Net revenue expenditure in 2021/22 of £624.833m (as set out in paragraph 4.1 of the report and Appendix 1);

 

(2)        An increase in council tax in 2021/22 of 4.99% comprising 3.00% for Adults’ Social Care and 1.99% to support other General Fund services;

 

(3)        The following amounts be approved for the financial year 2021/22 in accordance with Section 42A of the Local Government Finance Act 1992:

 

(a)         That the council tax requirement for 2021/22 is £509.476m.

 

(b)         The council tax base for the year 2021/22 is the aggregate amount calculated of Band D equivalents by the billing authorities to which the County Council issues precepts totalling 337,276.40.

 

(c)         The amount of council tax being the council tax requirement at 3(a) above divided by the council tax base at 3(b) above, shall be £1,510.56 to the nearest penny for Band D.

 

(d)         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:

 

Band	Amount	Band	Amount
A	£1,007.04	E	£1,846.24
B	£1,174.88	F	£2,181.92
C	£1,342.72	G	£2,517.60
D	£1,510.56	H	£3,021.12

 

(e)         That the district and borough councils be requested to make payments totalling £509.476m to West Sussex County Council of sums due under precepts calculated in proportion to their council tax Band D equivalents as set out in section 7 of the report.

 

(4)        The delegation to the Director of Finance and Support Services of authority to make changes to the report on net revenue expenditure or to the precepts required:

 

·        as a result of a change in the council tax base notified by the district and borough councils;

·        arising from updated information from the district and borough councils to the council tax collection funds and business rates forecast and collection funds; or

·        arising from any funding announcements from central government.

All such changes of funding (positive or negative) to be applied through the appropriate reserve.

 

(5)        The following further provisions:

 

(a)         The Capital Strategy for the period 2021/22 to 2025/26, as set out in Annex 2(a) to the report.

 

(b)         The Flexible Use of Capital Receipts Strategy as set out within the Capital Strategy, Annex 2(a), section 8 of the report.

 

(c)         The Treasury Management Strategy Statement 2021/22, as set out in Annex 2(b) to the report.

 

(d)         The Prudential Indicators, as set out in Annex 2(c) to the report.