Agenda item

Details of the Budget Process are attached.

 

8a) Leader’s Budget Speech

 

8b) Relevant extract of the minutes of Cabinet held on 4 February 2020.

 

8c) The report of the Special Overview and Scrutiny Management Committee held on 28 January 2020.

 

8d) Financial Plan 2020/21. Report by the Chief Executive Officers can be accessed at this link: Budget Papers

 

 

The Chairman explained the various documents that had been circulated in connection with Council’s consideration of this item, and the procedure for debate.

 

He then called upon Councillor Philip Whitehead, Leader of the Council, to present his budget speech.

 

Councillor Whitehead explained that Wiltshire Council in line with Central Government and other bodies was experiencing a time of sizable change especially during the last 12 months. Wiltshire had developed three wholly owned development companies in development, housing and energy which would generate significant sums of money needed elsewhere to help balance the Council’s budget.

 

He explained that a new staffing structure at tier 1 had been introduced by removing the three executive director posts and replacing them with two chief executive officer posts, responsible for people and place.  The reason for this was to introduce a more strategic role at the most senior staffing level, with the new chief executive officers emphasising working with towns, parishes and other partners.

 

Councillor Whitehead further explained that there were a number of important changes and challenges facing the Council including climate change, developments on information technology, responsibility for the welfare of residents of Wiltshire and protecting the elderly and vulnerable, the demand for which were increasing. The lack of proposed amendments to the budget was also noted and he strongly urged all Members to support the most vulnerable and others by approving the budget.

 

The Chairman then invited Councillor Simon Jacobs, Cabinet Member for Finance and Procurement to present the Budget. He explained that there had been a wide approach in preparing the Budget and placed on record his thanks to Deborah Hindson, Interim Director of Finance and Procurement, and her team for all the detailed work they had undertaken.

 

Councillor Jacobs reported on the process that had been undertaken to consult on the Budget, which had been open and transparent. The proposals had been discussed in detail with the public, the Financial Planning Task Group and the Overview and Scrutiny Management Committee prior to its consideration by Cabinet and now Council.

 

He explained that the Council’s strategic aims and priorities drove the medium-term financial planning process, with changes in resource allocation determined in accordance with policies and priorities of the Council’s 2017-27 Business Plan. It was important to ensure a strong sustainable financial base during the current challenging times.

 

The key changes reflected the revised forecast for the increasing demand for care for the vulnerable, which included adults and children with complex care needs. He stated there was an urgent need for the Government to determine a new fairer funding settlement for councils. He stated that the Council was currently in a good position to set a strong Financial Plan for the years ahead.

Councillor Jacobs therefore proposed the recommendations as set out in the report be adopted, this being seconded by Councillor Whitehead. 

 

Questions and statements were then received from members of the public.

 

Harriet James asked a question about the climate change implications of the Council’s Financial Plan Update 2020/21 relating to the Gasification Plant at Westbury to which Councillor Clewer responded.  A written response would be sent to Ms James, as attached to these minutes. Ms James asked a supplementary question about the alternative use of such facilities elsewhere to which Councillor Clewer stated a response would be sent to Ms James by the officers.

 

Bill Jarvis asked a question about the possibility of increasing the Climate Team staff allowance with a request that there would be a reconsideration of the capital allowances to deliver carbon mitigation measures to which Councillor Jacobs responded.  A written response would be sent to Mr Jarvis, as attached to these minutes.

 

Mr Jarvis asked a further question asking if the Council’s Section 151 Officer would review the forward forecast, taking into account the need for significant investment in the carbon mitigation measures needed for the County in the coming four years to which Councillor Jacobs responded.  A written response would be sent to Mr Jarvis, as attached to these minutes.

 

After public statements Councillor Graham Wright, Chairman of the Overview & Scrutiny Management Committee noted and welcomed the proposals in the budget. He considered that the Executive’s involvement with the Financial Planning Task Group was positive and he supported the recommendations.

 

Councillor Ian Thorn, as Chairman of the Financial Planning Task Group, thanked members of the Task Group for their contributions to the work of scrutinising the budget proposals.

 

The Chairman then invited the Group Leaders to comment on the budget as proposed.

 

Councillor Thorn, as Leader of the Liberal Democrat Group, noted the challenges contained in Councillor Whitehead’s speech and considered that additional resources were needed to address carbon reduction at a faster rate. He considered that the medium-term financial plan required monitoring to ensure that savings were made. He acknowledged the uncertainty about Government funding but was not convinced that any change would make any appreciable difference in Wiltshire. He drew attention to the significant areas of deprivation in the County and the increasing needs of the elderly.  He stated that the proposed Budget was uninspiring and complacent and therefore could not support the proposals.

 

Councillor Ricky Rogers, as leader of the Labour Group, stated that he would support the budget proposals. He noted that the council faced tough financial challenges, that culture change was essential in particular referring to temporary patching of potholes leading to greater costs in the long term, contrasted with family intervention work which had long term gains. He raised the issue of raising council house rents, and that these were almost in line with commercial rents.

 

There were no amendments moved by Group Leaders and debate was opened to all Members.

 

Comments in support of the budget included that the transformation of the Families and Children service to prioritise more early intervention was stated to be both more effective and beneficial for reducing costs in the future. It was noted in some comments that many services the council provided were not statutorily required despite their importance, and the spend had to be carefully managed. It was stated that the budget supported ambitious efforts to address climate change, invested in housing, supported high street bid funds, and that as in previous years no libraries or leisure centres were being closed to support that programme.

 

Some comments were made that the challenges faced by the council were such that the budget should be supported, but that some of the comments from the Leader on those who opposed the budget had been unwise.

 

Comments in opposition to the budget included that the budget should have included further mitigation measures regarding climate change, which would otherwise lead to further increased costs in the future. There was criticism of previous efforts to address climate change and that some maintained services in relation to libraries were less than that previously offered

 

Other comments made included he costs of social care and other growth areas and the need to find £70m in other areas to meet requirements, the level of council tax increase, and the inadequate funding of special educational needs by central government.

 

Councillor Jacobs responded to comments raised during debate, stating that the £70m funding gap was prior to any changes arising from a fairing funding review and a review of social care and agreed central government needed to address this. He noted that 62p of every pound the council raised went towards looking after vulnerable adults and children, and it was in that context that the level of commitment to climate change measures needed to be considered. He also around approximately 25,000 residents would now be able to get council tax relief, recognising the difficulties for those on low earnings.

 

At the conclusion of debate, it was,

 

Resolved:

 

Vote 1

That Council:

 

a. Agrees the budget for 2020/21;

b. Approves the growth and savings proposals summarised in the report to provide a net revenue budget for 2020/21 of £344.023 million;

c. Agrees to:

i. Set the Council’s total net expenditure budget for 2020/21 at £344.023 million;

ii. Set a Council Tax increase of 1.99% and Social Care Levy increase of 2%;

iii. Delegate changes in fees and charges as set out in Section 9;

d. Endorse the Medium-Term Financial Strategy and receive regular updates on delivery against strategy to Cabinet; and

e. Notes the budget gap of £69.527 million for MTFS period 2021/22 – 2024/25.

 

Vote 2

That Council:

iv. Set a 2.7% increase for social dwelling rents (CPI plus 1%);

v. Set the Housing Revenue Account (HRA) Budget for 2020/21 at £30.302 million expenditure; and

vi. All service charges related to the HRA being increased to recover costs, capped at increase of £5 per week for those not on housing benefits and garage rents increased by 1.7% (CPI).

 

Councillor Dalton withdrew from the meeting for Vote 2.

 

In accordance with the Constitution this was a recorded vote.

 

Vote 1

Votes for the motion (59)

Votes against the motion (18)

Votes in abstention (1)

 

Vote 2

Votes for the motion (65)

Votes against the motion (12)

Votes in abstention (3)

 

Details of each vote are attached to the minutes.