The report of Director of Finance (Document “CS”) sets out the update on budget decisions and Council Tax including new proposals for consultation with the public, interested parties, staff and Trade Unions for 2021-22.

Recommended -

That Executive, having considered the Council’s public sector equality duty as set out above:

(a)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the proposed Council Tax and Social Care precept for 2021/22 set out at in section 6 of Document “CS”.

(b)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the proposed investments as set out in sections 8 to 14 of Document “CS”.

(c)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the new budget savings proposals for 2021/22 set out in section 15 of Document “CS”.

(d)  Approve for consultation as required with the public, interested parties, staff and Trade Unions amendments to previously agreed savings proposals for 2021/22 set out in section 16 of Document “CS”.

(e)  Note the proposed use of reserves as set out in section 18 of Document “CS”.

(f)   Approve for consultation the proposed new capital schemes PCS1 to PCS7 as set out in section 21 of Document “CS”.

(g)  Approve the consultation mechanisms and processes set out in section 22 of Document “CS”.

(Corporate Overview & Scrutiny Committee)

(Andrew Cross – 01274 436823)

The report of Director of Finance (Document “CS”) set out the update on budget decisions and Council Tax including new proposals for consultation with the public, interested parties, staff and Trade Unions for 2021-22.

The Director of Finance tabled an addendum to Document “CS” following the Chancellor’s Spending Review (CSR) statement on 25^th of November 2020.  He noted that some of those announcements had a material impact on the proposed 2021-22 Financial Plan.  He added that the level of reserves required to balance the 2021-22 budget reduced from c£28m to c£12m.  He added that further work would be undertaken to assess the full impact of announcements from the CSR , and some of the detail would be published by the Government as part of the Provisional Settlement for Local Authorities. This is expected during the week commencing 14^th December 2020.

The Leader in tabling Budget and Council Tax proposals for 2021/22 commented that the Government was unwilling to raise income tax but the same was not true of Council Tax.  She was of the opinion that adult social care should be funded centrally and not from Council Tax.  She referred to the level of uncertainly and the difficulty in planning which was not all related to the Covid19 pandemic and noted that the Adult Social Care Green Paper and the Fairer Funding Formula were still long waited.  She added that the Council had been hit hard over the previous 10 years by cuts in funding and she thanked colleagues and officers in balancing the books and making difficult decisions.  She added that the Council was now in a position where it had prudent financial management and that no new staffing cuts were being proposed and that all staff were needed going forward to meet the considerable challenges in the year ahead.  She stressed that there would be no cuts to services and that reserves would be used to keep going and provide a solid foundation for the district in the coming year.  She emphasised that the council had a role as a place maker and place shaper and investments were being made in people with a people powered economy, investments in green jobs and industries and skills for work.  She noted that in the last recession investment had been made in people displaced from industry and noted the intention to ensure that this did not happen again, for which the authority was well placed.

The Education Employment and Skills Portfolios Holder noted the commitment to continue to address the skills gap in the district and raise attainment levels in schools.

The Leader noted that WYCA had recently agreed £13.5m additional skills funding.

The Children and Families Portfolio Holder  noted the significant investment in Children’s Social Care to protect the most vulnerable in society as Children’s Social Care continued on an improvement journey.  He highlighted the pressures regarding agency staff and that recruitment and retention was a priority to driving improvement.

The Healthy People and Places Portfolio Holder referred to the investment in Adult Services due to increased demand and the ability of the Council to raise an increased precept for adult social care.  She however noted that the Green Papers on funding for adult social care had been awaited for over 4 years and stressed the need for sustainable funding for adult social care going forward.  She noted that the tonnage of waste had increased during the Covid19 pandemic, that staff from other services had been deployed into the waste service and that the commodity price for recyclates had  reduced which had increased pressure on the budget. She referred to the importance of the City of culture bid to the district.  She noted the £25m commitment to responding to climate change and the climate emergency to build a greener district and referred specifically to the commitment to plant a tree for every child in the district which had featured on BBC Countryfile.  She also referred to investment in electric fleet vehicles.

The Regeneration, Transport and Highways Portfolio Holder referred to housing First and the continued investment to support rough sleepers and he thanked staff in the homeless service in getting 200 rough sleepers off the street.  He noted that Housing First had started as a pilot 2 years ago and was expanded last year and that the budget had been kept at the same level because it was successful and had culminated in nearly halving the number of rough sleepers in the previous year.  He was pleased to note that the street lighting project would reduce energy use in lighting by 2/3 and provide improved lighting and would bring over £4m social value to the district.

The Neighbourhoods and Community Safety Portfolio Holder noted that the number of referrals to the domestic violence service had increased by 76%.  Funding was to be allocated in the budget for the stronger communities team.  He thanked staff for their work during difficult times.

The Leader thanked staff including the finance team in putting together the budget amid a lot of uncertainty.  She stressed the importance of increased investment in staff.

In response to a member question the Director of Finance confirmed that the  £3.5m saving as a result of the public sector pay freeze was a net saving and that government advice was that those earning over £25,000 would not get a pay award.

The Director of Finance concluded that there was still a gap in funding for the next year and that the additional Covid19 funding was welcome.  He noted that there had been a commitment to meet 75% of Council Tax and Business Rates losses so the authority would still have to manage 25% of the losses.  He added that the Government funding would be provided for loss of income due to Covid19 of 75p in the £ pound so there would still be pressures as losses were not being funded on a pound for pound basis.

Resolved -

That Executive, having considered the Council’s public sector equality duty as set out above:

(a)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the proposed Council Tax and Social Care precept for 2021/22 set out at in section 6 of Document “CS”.

(b)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the proposed investments as set out in sections 8 to 14 of Document “CS”.

(c)  Approve for consultation as required with the public, interested parties, staff and Trade Unions the new budget savings proposals for 2021/22 set out in section 15 of Document “CS”.

(d)  Approve for consultation as required with the public, interested parties, staff and Trade Unions amendments to previously agreed savings proposals for 2021/22 set out in section 16 of Document “CS”.

(e)  Note the proposed use of reserves as set out in section 18 of Document “CS”.

(f)   Approve for consultation the proposed new capital schemes PCS1 to PCS7 as set out in section 21 of Document “CS”.

(g)  Approve the consultation mechanisms and processes set out in section 22 of Document “CS”.

ACTION: Director of Finance

Corporate Overview & Scrutiny Committee