Agenda item

8a) Leader's Budget Speech

 

8b) Proposed Amendments to the Budget from Cllr Gavin Grant.

 

8c) The reports of the Special Overview and Scrutiny Management

Committee held on 31 January and 12 February 2019.

 

8d) Relevant extract of the minutes of Cabinet held on 5 February 2019.

 

8e) Local Government Act 2003 Section 25 Report

 

8f) Financial Plan 2018/19. Report by the Corporate Directors 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.

 

She then called upon Cllr John Thomson, Deputy Leader, to present the budget.  He explained that there had been a collective and collaborative approach to preparing the Budget and thanked the valuable work undertaken by the Financial Planning Task Group, the Overview & Scrutiny Management Committee and the officers in drawing up the proposals.  The three main factors in preparing the Budget were:

 

·         Supporting the local economy.

·         Safeguarding jobs

·         Sustainability

 

Furthermore, he reminded the meeting that Government funding had been systematically reduced since 2010 but this had been ameliorated by the transforming of services, not least by the embracing of new technology.  He stressed the need to protect the most vulnerable, which was becoming an increasing problem. 

 

The Chairman then called upon Cllr Philip Whitehead, Cabinet Member for Finance, to present and move the Financial Plan 2019/20.  He explained that the Budget was in a stable position at present and that the Council was in a good position to set a strong Financial Plan for the year ahead.  This would be the last time Council would be asked to approve a budget for one year as next year Council would be asked to consider setting a revenue budget for three years and a capital strategy for a period of ten years.  It was pointed out that during the next financial year the Council was likely to spend almost £332 million on the services it provided and was aligned to the Council’s priorities, namely growing the economy, strong communities, protecting those who were most vulnerable, and working with partners as an innovative and effective council. Cllr Whitehead reported that the Council’s spend amounted to about £1million a day. He reported that the budget proposals had been considered by the Overview & Scrutiny Management Committee.  He was always open to new ideas to save finances and encouraged any fully costed proposals to be sent to him for consideration. 

 

Cllr Whitehead thereupon proposed that the recommendations as set out in the report be adopted, this being seconded by Cllr Pip Ridout.

 

Cllr Graham Wright, Chairman of the Overview & Scrutiny Management Committee, presented the reports of his Committee dated 31January and 12 February 2019.  He drew attention to the following conclusions of the Committee:-

 

·         To note the Financial Plan Update 2019/20 and to refer the comments of the Committee and the report of the Financial Planning Task Group to Cabinet and Full Council for consideration on 5 and 26 February respectively.

 

·         To welcome the Executive’s early and positive engagement with the Financial Planning Task Group in the budget development process.

 

• To recommend that future annual budget reports and councillor budget briefings describe the development process that all budget proposals must go through in order to be considered robust. 

   

·         To continue to support the Financial Planning Task Group’s focus on supporting the development of robust council budgets.

 

Cllr Ian Thorn, as Chairman of the Financial Planning Task Group thanked members of the Task Group and the officers for their work and also Cllr Whitehead for attending meetings and answering questions.

 

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

 

Cllr Ian Thorn, in his capacity as Leader of the Liberal Democrat Group, stated that he supported the Council’s key priorities but was saddened by the effect of the sustained reduction in the Rate Support Grant since 2010, which was resulting in the increase in parking charges and the effect on services such as children’s SEND services. He considered that transformation was critical to the continued provision of services expected by the public.  He endorsed the new arrangements from 2020 for setting a revenue budget for three years and a capital strategy for a period of ten years which he considered to be very sensible. However, he expressed concern on the effect of the continuing reduction of the Rate Support Grant particularly on the vulnerable.  He considered that the proposed Budget lacked vision and fresh ideas. He felt that it was not sufficiently ambitious and more consideration should have been given to the use of commercialisation, house building and transformation to help ameliorate the situation.   For these reasons he could not support the Budget proposals.

 

Cllr Christopher Devine, in his capacity as Deputy Leader of the Independent Group, considered that the Administration had proposed a sensible budget in view of the Government’s continuing massive cuts in the Rate Support Grant and compared with other local authorities who were encountering far more financial problems than Wiltshire. However, the proposed 2.99% increase in council tax, although understandable, would have a significant effect on a significant proportion of Wiltshire’s population living below the minimum wage.

 

Cllr Ricky Rogers, in his capacity as Leader of the Labour Group, acknowledged that the level of services provided was not improving and highlighted the reduction in Youth Services and Adult Care provision.    Nevertheless, given all the circumstances, he supported the budget proposals.

 

There being no amendments from the Group Leaders, the Chairman called upon Cllr Gavin Grant to move his amendment.

 

Cllr Grant then moved that the charges in Wiltshire Council car parks on public holidays be removed, the net loss in revenue amounting to approximately £60,000, and that the shortfall be made up by an equal movement of funds from the General Reserve.   This amendment was seconded by Cllr Nick Murry.

 

Cllr Graham Wright, as Chairman of the Overview & Scrutiny Management Committee, reported that Cllr Grant’s proposal had been considered by this Committee.

 

The Chairman then invited the Group Leaders to comment on Cllr Grant’s amendment.

 

Cllr John Thomson, in his capacity as Deputy Leader of the Conservative Group, stated that he could not support the amendment on account of the proposal to meet the cost of £60,000 from Reserves.

 

Cllr Ian Thorn, as Leader of the Liberal Democrat Group, supported the amendment.

 

Cllr Christopher Devine, as Deputy Leader of the Independent Group considered that the amendment was subjective and he would vote accordingly.

 

Cllr Ricky Rogers, as leader of the Labour Group, supported the amendment, stating that the cost involved was not a huge amount of money.

 

The Chairman then invited comments in debate.

 

Cllr Philip Whitehead stated that he did not support the amended Motion because he could not agree that the cost be met from Reserves.  He considered that Reserve funds should only be considered in cases of emergency.

 

Admin Note: The meeting adjourned for lunch at 13:20 and reconvened at 14:00.

 

There was some support expressed for the amendment, it being pointed out that although efforts were being made to encourage cyclists and pedestrians to town centres, charging for car parking did have a detrimental effect on the sustainability of town centres and every effort should be made to ameliorate this.

 

Several other Members stated that they could not support the cost of implementing the proposal being met from Reserves, which should only be used for emergencies.

 

As mover of the amendment, Cllr Grant stated that many workers were able to observe Public Bank Holidays and regarded these as an opportunity to make use of facilities in town centres, thus adding a boost to the local economy. He also pointed out that of the 1,377 people who responded to the car parking consultation, 60% of residents were opposed to car park charging on Bank Holidays.

 

As mover of the original Motion, Cllr Whitehead reported that revenue from car park charging supported the provision of public transport in Wiltshire for which there was much demand, this being very much a rural county.  There was also a need to ensure that a balanced Budget was provided.

 

The amended Motion was then put to the vote and lost.

 

Admin Note: A record of the vote is appended to these minutes.

   

The Chairman thereupon invited comments on the original Motion as proposed by Cllr Whitehead and seconded by Cllr Pip Ridout.

 

Cllr Alan Hill expressed regret that there were no proposals from more political groups to address the concerns that they have raised in debate,

 

Cllr Jerry Wickham stated that considerable time and effort had been given to identifying where savings could be achieved in order to secure a balanced Budget was disappointed that alternative budgets had not been put forward by other political groups, especially on hearing comments made during this debate.

 

Cllr Jon Hubbard acknowledged that the whole financial situation had changed especially during the last eight years of austerity which had resulted in so many cuts being made. He thought that the imminent removal of the Rate Support Grant might alleviate the problem to a degree but noted that local authorities would have to compete to receive adequate amounts of the Business Support Rates which would be decided by Central Government.  He considered that many of the challenges besetting local authorities was the fault of Central Government.  

 

Cllr Richard Clewer referred to various projects with which the Council was deeply involved.  He mentioned in particular proposals for new housing and also the Salisbury Vision, which included the Maltings Project and a new Library for Salisbury.

 

Cllrs Matthew Dean & Brian Dalton referred to the Salisbury Vision and in particular the proposed two moves of the Library, initially to a smaller site which they could not support.

 

As mover of the Motion, Cllr Whitehead referred to the tests which Cllr Thorn had mentioned in his response to the original Motion and stated that these had not been questioned prior to this meeting.  He considered that the transformation service was superb as was the management of growth.

 

The meeting thereupon

 

Resolved

 

That Council:

 

A.   Endorses the update of the Financial Plan for 2019/20;

 

B.   Approve the growth and savings proposals summarised in the report to provide a net revenue budget for 2019/20 of £332.378 million

 

C(i). Set the Council’s total net expenditure budget for 2019/20 at £332.378 million;

 

C(ii). Set a Council Tax increase of 2.99%;

 

C(iii). Agree delegated changes in fees and charges as set out in Section 41;

 

C(iv). Set a 1% reduction for social dwelling rents;

 

C(v). Set the Housing Revenue Account (HRA) Budget for 2019/20 as set out at Appendix D of this report; and

 

C(vi). That all service charges related to the HRA be increased to recover costs, capped at increase of £5 for those not on housing benefits and garage rents increased by 3%.

 

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

 

And notes the Section 25 report and consider this as part of the budget setting process.

 

Having previously declared a disclosable pecuniary interest in the Budget in so far as it related to the housing revenue account, Cllr Brian Dalton withdrew from the meeting when a separate vote was taken on the housing revenue account (resolutions c iv, v and vi above).

 

 

Admin Note: A record of the vote is appended to these minutes.