Issue - meetings

This report presents the revenue and capital budgets for 2019/20 together with proposals for Council Tax and Adult Social Care Precept for 2019/20.

The Council considered a report presenting the Cabinet’s revenue and capital budgets for the 2019/20 financial year together with proposals for Council Tax and Adult Social Care Precept for 2019/20.

In addition to the reports circulated with the agenda, all Councillors had received a summary document of Policy Development and Scrutiny Panel comments on the budget proposals.  Councillors also received Annex 12 – Formal Council Tax Setting resolutions (incorporating precepts from Parishes, Fire and Police).

On a motion from Councillor Tim Warren, seconded by Councillor Dine Romero, it was RESOLVED that the Council suspends Council rule 42, Content and Length of Speeches, for the duration of this debate so as to enable variations to be permitted to the length of speeches by the Cabinet Member for Finance and Efficiency, the Liberal Democrat, Labour and Independent Group Leaders or their nominated Spokespersons, and the Chair of the Resources Policy Development and Scrutiny Panel.

On a motion from Councillor Gerrish, seconded by Councillor Tim Warren, it was

RESOLVED

1.  that Council approves;

a)  The General Fund net revenue budget for 2019/20 of £113.10m and the individual service cash limits for 2019/20 as outlined in Annex 1 of the report.

b)  The savings and income generation plans outlined in Annex 2 of the report in conjunction with the Equalities Impact Assessment Report in Annex 3 of the report and thereby agrees to implement the Council’s draft Organisational Plan which has been presented to each of the relevant PDS Panels.

c)  To help protect front line services and meet additional pressures in Children’s Services, the budget includes a recommendation that Council Tax is increased by 2.95% in 2019/20 (an increase of £39.76 per Band D).

d)  An increase of 1% to Council Tax for the Adult Social Care Precept is approved in recognition of the current demands and financial pressures on this service. This is equivalent to an increase of £13.47 on a Band D property.

e)  The adequacy of Un-earmarked Reserves at £12.2m within a risk assessed range requirement of £11.9m - £13.1m.

f)  The Efficiency Strategy attached at Annex 4 of the report.

g)  The Capital Programme for 2019/20 of £78.591m including new and emerging capital bids outlined in Annex 5(i), planned sources of funding in 5.7.2, and notes the programme for 2020/21 to 2023/24 and that any wholly funded projects coming forward during the year will be added to the Capital Programme in line with the Budget Management Scheme.

h)  The delegation of implementation, subject to consultation where appropriate, of the capital programmes set out in Annex 5(ii) to Annex 5(iv) of the report to the relevant Director in Consultation with the appropriate Portfolio Holder.

i)  The Community Infrastructure Levy (CIL) allocations and amendments outlined in Annex 5(v) of the report and the addition of Alternative Education Provision to the Regulation 123 list.

j)  The Capital & Investment Strategy at Annex 6 to the report.

k)   The MRP Policy at Annex 7 to the report.

l)  The Capital Prudential Indicators  ...  view the full minutes text for item 70

This report presents the revenue and capital budgets for 2019/20 together with proposals for Council Tax and Adult Social Care Precept for 2019/20.

Councillor Dine Romero made an ad-hoc statement by saying that there was not much that could be amended to the proposed Budget due to continuous cuts from Central Government.  Councillor Romero also said that the future budget proposal was suggesting more involvement from volunteers and businesses which may not be sustainable in the long term.  Councillor Romero also questioned if the previous budget had helped communities and people with greater need for help.  Councillor Romero concluded her statement by suggesting that local businesses have not been helped by the Council and they have complained to her how margins were small and rents were high.

Councillor Richard Samuel made an ad-hoc statement by saying that all Local Authorities would be in difficult situation as the funding for the Budget would shift from Central Government to Local Tax.  Councillor Samuel also said that many frontline services provided by the Council would be affected with future cuts and whoever runs the Council after local elections in May 2019 would be in difficult situation.

Councillor Charles Gerrish introduced the report by saying that the Budget would be challenging considering that most of the Budget would be allocated to Adults and Children services and that the Council would have to look into ways of becoming self-sufficient.

The Medium Term Financial Strategy (MTFS) has been approved in October 2018 and did outline how the budget would be delivered over the medium to long-term. The MTFS for B&NES spans two years with a further three added to show the likely longer-term picture.

The Council would need to deliver a balanced budget over the term of the plan.  A balanced budget would mean that balances or reserves should not be used to meet on-going expenditure commitments.  The MTFS has shown a projected budget gap for 2020/21 and beyond.  The figures have included all estimates for pay awards, pension costs, Council Tax, business rates, Government grant, and inflation.

The budget would focus on protecting frontline services at a time when the authority was facing cuts in funding whilst facing unprecedented increases in demand in Adults and Children’s Services.  An increase of 1% in the Adult Social Care Precept has been included in this budget to help meet the pressures in Adult Social Care.

The Council has had a good track record in savings delivery with £55.4m delivered between 2013/14 to 2017/18 and, a further £17m expected in this (2018/19) financial year – a total of £72.4m over six years.

The current plan has identified, delivered, and would continue to deliver a high number of efficiency savings and therefore the scope for delivering further large savings from efficiencies was limited. The agreed approach would be:

•  To review Council priorities to understand scope for further savings;

•  To rationalise our corporate estate;

•  To review the conditions of service of our workforce and ensure they are fit for the future;

•  To review the scope for shared services;

•  To review and target capital spend to priority areas and  ...  view the full minutes text for item 82

The report attached presents the Council’s Corporate and Budget Planning 2019-2020. Please note appendix 5 and 6 will be sent out at a later date.

David Trethewey – Director of Partnerships and Corporate Services and Donna Parham – Director of Finance introduced the report.

The Cabinet Member for Finance and Efficiency, Councillor Charles Gerrish was present to answer questions.

Panel members asked the following questions and made the following points:

The Panel noted the comments from other PDS Panels.

Councillor O Brien pointed to the high and medium risk factors in Appendix 2 (such as office accommodation) and asked if officers were confident that the strategy for savings was sufficiently robust. The Finance Director responded that 35% of savings plans are marked as high risk this year whereas it was over 60% this year so this was a better position. She further explained that the budget contingency is being added to and all high and medium risk factors will be monitored.

Councillor Becker asked how this authority compares to others regarding Council Tax. The Finance Director explained that this authority is currently third lowest in Council Tax charges in the region and should remain so despite the increase.

Councillor O Brien asked if our key partners (for example social housing providers) would be proactive in supporting the savings proposed. The Director of Partnerships and Corporate Services explained that part of the purpose of the Core Offer is to be clear what the authority can afford to deliver and to enable a more honest engagement with partners and the community.

Councillor Rayment noted the comments from the Communities, Transport and Environment Panel and asked if they had been followed up. The Cabinet Member for Finance and Efficiency, Councillor Charles Gerrish confirmed that the relevant Cabinet Member had noted the comments and will report back where requested.