Agenda item

Wiltshire Council's Business and Financial Plan Update and Budget 2012/13

To consider the Leader’s motion on the Business and Financial Plan Update and the Budget and council tax levels for 2012/13 following the recommendations of Cabinet from its meeting on 15 February 2012.

The following reports are attached:

Minutes:

Cllr Dalton declared a personal and prejudicial interest in this item regarding the setting of garage rents as referred to in the proposals concerning the Housing Revenue Account as he held a garage tenancy.

The Chairman explained how he intended to manage the debate on the budget as summarised in the previously circulated paper regarding the budget process.

The Chairman drew Councillors’ attention to the various budget papers which had been previously circulated as follows:

· Budget report

· Report from the joint meeting of the Overview and Scrutiny Select Committee held on 9 February 2012

· Extract from the minutes of the Cabinet meeting held on 15 February 2012

· Proposed Council Tax resolution

· Report on Treasury Management Strategy 2012/13

· Report on revision to Treasury Management Strategy 2011/12

· Revised Financial Plan

· Liberal Democrat Group’s response to the Business and Financial Plan

· Budget Debate Process

The Chairman invited Cllr Jane Scott, Leader of the Council, to present her budget speech which was circulated at the meeting and is attached as Appendix 3.

The Leader explained that the priorities for Wiltshire Council were to deliver what was best for the people of Wiltshire, to look after the growing aging population and vulnerable children, to manage the challenging economic situation and to keep council tax at a zero percent increase for the third year running.

The Council was currently undergoing transformation and looking at new ways of providing key services including waste and recycling collections, leisure, libraries and older people’s accommodation. The number of offices was being reduced and the Council was moving towards a new community campus model. There were plans to invest almost £350 million into key services over the next three years while continuing to change and to keep looking at the way services were delivered and working closely with communities.

The Leader also thanked the new leadership team, extended leadership team and all the Council’s staff for their hard work, commitment and outstanding delivery this year, particularly in such challenging and demanding times.

The Leader moved the recommendations from the Cabinet meeting held on 15 February 2012 regarding the Financial Plan, Treasury Management Strategy 2012/13 and amendment to the Treasury Management Strategy 2011/12. She also explained that £290k from existing base budgets would be used to pump prime 2012 celebratory events this year. Where possible the expenditure would be offset by income generated from businesses participating and/or sponsoring the events. The money would come from holding vacancies in corporate services that have not already been deleted as part of the saving proposals. This was seconded by Cllr John Thomson the Deputy Leader.

At the Chairman’s invitation, Cllr Nigel Carter presented the report of the Joint Overview and Scrutiny Select Committee meeting held on 9 February 2012. The Select Committee was pleased to see a balanced budget this year. The Committee felt that the Financial Plan could be improved by putting more emphasis on good news stories, ensuring the narrative highlights and explains big changes to service budgets and making sure that the public understand that the Council is doing more for less by freezing council tax and spending more on frontline services to meet higher levels of demand.

The Joint Committee had noted that there were a large number of spreadsheets supporting the figures and the Scrutiny members would like to look at the detail throughout the coming year.

Group Leaders were then invited to respond to the Leader’s motion or move an amendment to the motion.

Cllr Jon Hubbard, Leader of the Liberal Democrat Group, responded to the Leader’s motion and congratulated her and the officers on producing a balanced budget following a challenging year. The Liberal Democrat Group had this year produced a response to the budget rather than an alternative budget. Cllr Hubbard explained that the Liberal Democrats had listened to the public and had put forward some amendments. Any spend identified in the budget response were met by corresponding savings commitments. Cllr Hubbard stated that he wished to move a number of amendments to the motion later in the meeting.

Cllr Christopher Newbury, Leader of the Independent Group, spoke positively of the changes to the waste and recycling service, superfast broadband project and improvements in GCSE results. He pointed out that while the bottom line was still the same, within particular areas there were some large movements within the overall budget.

Cllr Nigel Carter, Leader of the Devizes Guardians, stated that highways maintenance and attracting high quality companies to Wiltshire should be high priorities. He also congratulated the administration on achieving a balanced budget.

Cllr Ricky Rogers, Leader of the Labour Group, expressed concerns about reductions in services, staff redundancies and adverse changes to staff terms and conditions. He also spoke against the 6.4% increase in council house rents.

AMENDMENTS

Cllr Jon Hubbard then moved the following amendment which was seconded by Cllr Howard Marshall:

Amendment 1

“To introduce one hour’s free parking across all Wiltshire Council controlled car parks, with all remaining charges remaining at current levels:

To be paid for by:

reducing spending on Communications Dept - £750,000
Additional Senior Management savings from reduction in Service Directors and Heads of Service - £150,000
Remove proposed Administration investment in Big Society - £200,000
Reduce growth in Transformation base budget - £200,000
Defer capital borrowing costs - £230,000

--------------

1,530,000”

Cllr Dick Tonge, Cabinet Member for Highways and Transport, responded to the amendment stating that car parking charges had been frozen for at least two years. He also pointed out that some on street parking charges were excluded from the amendment which would lead to inequalities across the County. There was also a high risk of losing revenue which could potentially cost £1.7m more if people did not stay for more than an hour.

The Chairman gave other Group Leaders the opportunity of responding to the amendment before opening the debate to other members of the Council.

On being put to the vote, amendment no. 1 was LOST and, a recorded vote having been requested by the requisite number of Councillors, the voting was as follows:

For amendment no. 1 (23)

Cllrs Desna Allen, Rosemary Brown, Jane Burton, Trevor Carbin, Chris Caswill, Michael Cuthbert-Murray, Brian Dalton, Bill Douglas, Peggy Dow, Russell Hawker, Jon Hubbard, David Jenkins, John Knight, Howard Marshall, Steve Oldrieve, Helen Osborn, Jeff Osborn, Mark Packard, Stephen Petty, Ricky Rogers, Judy Rooke, Paul Sample and Ian West

Against amendment no. 1 (54)

Cllrs Chuck Berry, John Brady, Richard Britton, Liz Bryant, Allison Bucknell, Richard Clewer, Chris Cochrane, Linda Conley, Mark Connolly, Christine Crisp, Andrew Davis, Peter Davis, Fleur de Rhe Philipe, Tony Deane, Christopher Devine, Mary Douglas, Peter Doyle, Rod Eaton, Nick Fogg, Peter Fuller, Richard Gamble, Jose Green, Howard Greenman, Mark Griffiths, Mollie Groom, Robert Hall, Mike Hewitt, Charles Howard, Chris Humphries, Keith Humphries, Peter Hutton, Julian Johnson, Jerry Kunkler, Jacqui Lay, Alan Macrae, Laura Mayes, Bill Moss, John Noeken, Sheila Parker, Leo Randall, Pip Ridout, Bill Roberts, Jane Scott, Jonathon Seed, John Smale, Carole Soden, Toby Sturgis, John Thomson, Dick Tonge, Tony Trotman, Fred Westmoreland, Stuart Wheeler, Roy While and Chris Williams

Abstentions amendment no. 1 (9)

Cllrs Nigel Carter, Peter Colmer, Tom James, George Jeans, Ian McLennan, Christopher Newbury, Jeff Ody, Graham Payne and Graham Wright

Amendment 2

Cllr Jon Hubbard then moved the following amendment which was seconded by Cllr Chris Caswill:

“Changes in government policy have seen an ever increasing number of schools choosing to become Academies.

We congratulate the administration for continuing to provide services to schools and for the initiatives in trading with the newly formed academies. However, we believe there is a real opportunity to increase income to the council by increasing trading with other out-of-county schools.

We propose investing £0.250m in increasing the services offered by Wiltshire Council to neighbouring authorities. We believe this would result in additional income of £0.300m, thus contributing £50,000 towards the cost of running Wiltshire.”

Cllr Jane Scott, Leader of the Council, responded to the amendment stating that she agreed with this principle but not with the proposed timing. Some work was currently being undertaken with neighbouring authorities and the outcome was still awaited. For this reason she would ask for a Scrutiny Task Group to be set up to look into the findings from the south west work and how this proposal sat with that and to make recommendations to the Cabinet.

The Chairman gave other Group Leaders the opportunity of responding to the amendment before opening the debate to other members of the Council.

Cllr Hubbard welcomed the setting up of a Task Group and with the consent of the seconder and the meeting agreed to WITHDRAW this amendment.

Resolved: That amendment 2 be withdrawn.

Amendment 3

Cllr Jon Hubbard then moved the following amendment which was seconded by Cllr Chris Caswill:

“To re-introduce free swimming for under-16s and over-60s; As part of the Olympic preparations, and to meet Wiltshire Area Board commitments in the 2014 Leading by Example initiative. This investment emphasises the importance of health in a good quality of life in Wiltshire.

The total cost of this proposal is £505,000 and will be funded by savings from the Communications budget.”

Cllr Stuart Wheeler, Cabinet member for Campus Development and Culture, responded stating that it was important to spend responsibly. The proposals being put forward by the Leader would aim to encourage those children who did not regularly take part in physical activity to do so. Research had shown that when free swimming was provided for the over 60s 83%of those who made use of this facility would go swimming anyway.

The Chairman gave other Group Leaders the opportunity of responding to the amendment before opening the debate to other members of the Council.

On being put to the vote, Amendment no. 3 was LOST and, a recorded vote having been requested by the requisite number of councillors, the voting was as follows:

For amendment no. 3 (23)

Cllrs Desna Allen, Rosemary Brown, Trevor Carbin, Chris Caswill, Ernie Clark, Brian Dalton, Bill Douglas, Peggy Dow, Russell Hawker, Jon Hubbard, George Jeans, David Jenkins, John Knight, Howard Marshall, Ian McLennan, Steve Oldrieve, Helen Osborn, Jeff Osborn, Mark Packard, Ricky Rogers, Judy Rooke, Ian West and Graham Wright

Against amendment no. 3 (57)

Cllrs Chuck Berry, John Brady, Richard Britton, Liz Bryant, Allison Bucknell, Jane Burton, Nigel Carter, Richard Clewer, Chris Cochrane, Peter Colmer, Linda Conley, Mark Connolly, Christine Crisp, Mike Cuthbert-Murray, Andrew Davis, Peter Davis, Fleur De Rhe Philipe, Tony Deane, Mary Douglas, Peter Doyle, Peter Fuller, Richard Gamble, Jose Green, Howard Greenman, Mark Griffiths, Mollie Groom, Robert Hall, Mike Hewitt, Charles Howard, Chris Humphries, Keith Humphries, Peter Hutton, Julian Johnson, Jerry Kunkler, Jacqui Lay, Alan Macrae, Laura Mayes, Bill Moss, John Noeken, Jeff Ody, Sheila Parker, Graham Payne, Leo Randall, Pip Ridout, Bill Roberts, Jane Scott, Jonathon Seed, John Smale, Carole Soden, Toby Sturgis, John Thomson, Dick Tonge, Tony Trotman, Fred Westmoreland, Stuart Wheeler, Roy While and Chris Williams

There were no abstentions.

Suspension of Council Procedure Rule 136

In accordance with Council Procedure Rule 155 (suspension), Cllr Chris Humphries moved that Council Procedure Rule 136 (Recorded Vote) be suspended for the duration of this meeting. This motion was seconded by Cllr John Smale.

The Liberal Democrat Group expressed concern regarding this motion stating that they considered it to be undemocratic and detrimental to the rights of a minority political group.

A recorded vote having been requested by the requisite number of councillors the voting was as follows:

For the motion (51)

Cllrs John Brady, Richard Britton, Liz Bryant, Allison Bucknell, Jane Burton, Nigel Carter, Chris Cochrane, Linda Conley, Mark Connolly, Christine Crisp, Andrew Davis, Peter Davis, Fleur de Rhe Philipe, Tony Deane, Peter Doyle, Peter Fuller, Richard Gamble, Jose Green, Howard Greenman, Mark Griffiths, Mollie Groom, Robert Hall, Mike Hewitt, Charles Howard, Chris Humphries, Keith Humphries, Peter Hutton, Julian Johnson, Jerry Kunkler, Jacqui Lay, Alan Macrae, Bill Moss, John Noeken, Jeff Ody, Sheila Parker, Graham Payne, Leo Randall, Pip Ridout, Bill Roberts, Jane Scott, Jonathon Seed, John Smale, Carole Soden, Toby Sturgis, John Thomson, Dick Tonge, Tony Trotman, Fred Westmoreland, Stuart Wheeler, Roy While and Chris Williams

Against the motion (25)

Cllrs Desna Allen, Chuck Berry, Rosemary Brown, Trevor Carbin, Chris Caswill, Richard Clewer, Brian Dalton, Mary Douglas, Bill Douglas, Peggy Dow, Jon Hubbard, George Jeans, David Jenkins, John Knight, Howard Marshall, Laura Mayes Ian McLennan, Steve Oldrieve, Helen Osborn, Jeff Osborn, Mark Packard, Ricky Rogers, Judy Rooke, Ian West and Graham Wright

Abstentions (2)

Cllrs Ernie Clark and Peter Colmer

Resolved:

That, in accordance with Council Procedure Rule 155, Council Procedure Rule 136 (Recorded Vote) be suspended for the remainder of the meeting.

Amendment 4

Cllr Jon Hubbard proposed the following amendment which was seconded by Cllr Chris Caswill:

“Re-introduce bank holiday opening for Leisure Centres. This investment ensures all people in Wiltshire have access to the facilities that allow them to stay healthy.

Total cost of this proposal is £115,000 and will be funded by savings on Senior Management posts.”

Cllr Stuart Wheeler, Cabinet member for Campus Development and Culture, responded stating that leisure centres had to be run as a business and that the use had decreased on bank holidays by 50%. It had therefore been necessary to shut on those days. He felt that it would not be justifiable or advisable to re-introduce bank holiday opening as funding would then have to be taken from other services.

The Chairman gave other Group Leaders the opportunity of responding to the amendment before opening the debate to other members of the Council.

On being put to the vote amendment 4 was LOST.

Amendment No. 5

Cllr John Hubbard proposed the following amendment which was seconded by Cllr Howard Marshall:

“Tripling the cash available to Community Area Transport Groups is a revenue neutral proposal. The money will be move from Wiltshire Council’s strategic transport funds, and out to local communities.

Where local communities wish, they can remain in a County-wide strategic fund where the additional funding instead contributes to major infrastructure projects decided by County Hall.

Communities in the central fund would need to remain in the fund for a minimum of three years.”

Cllr Dick Tonge, Cabinet member for Highways and Transport, responded stating that delegating more funding to the Area Boards would lead to less funding being available at the centre for strategic projects such as road safety schemes, transport strategy, freight issues and traffic studies. As well as the funding that had been delegated to the Area Boards there was an additional £100k available for larger projects which the Area Boards could bid for.

The Chairman gave other Group Leaders the opportunity of responding to the amendment before opening the debate to other members of the Council.

On being put to the vote the amendment was LOST.

Amendment No. 6

Cllr Jon Hubbard proposed the following amendment which was seconded by Cllr Brian Dalton:

“£0.25m capital investment gives capacity for £2.8m of borrowing, allowing a programme of replacing inefficient, dull street lights with brighter, safer Light Emitting Diode streetlights. Investment is matched by at least £0.25m savings on reduced energy costs.”

Cllr Dick Tonge, Cabinet member for Highways and Transport, responded stating that he supported the principle of reducing energy costs where possible and that approximately 1,300 street lights had already been turned off following discussions with local communities. However a formal assessment would have to take place to ensure the best return on investment. He would therefore ask officers to prepare a report for Cabinet to look at ways to reduce lighting costs to include different options and investment proposals.

Cllr Hubbard welcomed the proposed report to Cabinet and, provided it was brought forward in a timely fashion, agreed to WITHDRAW the amendment with the agreement of the seconder and the meeting.

Resolved: That amendment 6 be withdrawn.

The amendments from the Liberal Democrat Group having been either LOST or WITHDRAWN, the Chairman invited members to debate the Leader’s motion and/or to propose any further amendments.

Following debate, the Leader of the Council responded to the points raised. The Leader’s motion was then put to the vote and was CARRIED by a show of hands. It was therefore:

Resolved:

Business Plan and Financial Plan

(1) To endorse the update of the 2012-15 Business and Financial Plan.

(2) To agree that the savings and investment proposals summarised at Sections 9 and 7 respectively of the Chief Finance Officer’s report and Sections 4 and 5 of Cabinet’s proposed Financial Plan at Appendix 1 of the report, provides a net revenue budget for 2012/13 of £326.655 million.

(3) To agree to:

(a) Freeze Wiltshire Council’s element of the Band D council tax for 2012/13 £1,222.43, as calculated in accordance with statute, as set out in Section 10 of the Chief Finance Officer’s report.

(b) Set the Council’s total net expenditure budget for 2012/13 at £326.655 million.

(c) Adopt the changes introduced by Government and move from the current subsidy funding system to one of self-financing when local authorities take on responsibility for the current debt and repayment.

(d) Set a 6.4% increase for dwelling rents in accordance with rent restructuring.

(e) Set the Housing Revenue Account Budget for 2012/13 (original) as set out at Appendix F of Cabinet’s proposed Financial Plan at Appendix 1 of the report.

(f) Freeze all other rent or service charges related to the Housing Revenue Account at 2011/12 levels.

(g) Approve the Capital programme proposed at Appendix E of Cabinet’s proposed Financial Plan, attached to the report at Appendix 1.

(h) Set the changes in fees and charges set out in detail at Section 6 of Cabinet’s proposed Financial Plan at Appendix 1 of the report.

(i) Provide £145,000 to offer free swimming for under 16 year olds during the Easter and summer holidays.

Treasury Management Strategy 2012/13

To agree to:

(1) adopt the Prudential and Treasury Indicators (Appendix A of the Chief Finance Officer’s report).

(2) adopt the Annual Investment Strategy and approve the changes in the Strategy, resulting from the replacement of Fitch Ratings individual credit ratings with new bank viability ratings (Appendix B of the report paragraph 22) and the updated guidance on the determination of the maturity of LOBO loans (a detailed explanation is shown in paragraphs 21 to 24 of the report).

(3) delegate to the Chief Finance Officer the authority to vary the amount of borrowing and other long term liabilities within both the Treasury Indicators for the Authorised Limit and the Operational Boundary.

(4) authorise the Chief Finance Officer to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long term portfolio.

(5) agree that short term cash surpluses and deficits continue to be managed through temporary loans and deposits.

(6) agree that any long term surplus cash balances not required to cover borrowing are placed in authorised money-market funds, particularly where this is more cost effective than short term deposits and delegate to the Chief Finance Officer the authority to select such funds.

Treasury Management Strategy 2011/12 – Revision January 2012

To agree to:

(1) Adopt the revised Prudential and Treasury Indicators (Appendix A of the Chief Finance Officer’s report).

(2) adopt the revised Annual Investment Strategy (Appendix B of the report).

(4) authorise the Chief Finance Officer to agree the restructuring of existing long-term loans where savings are achievable or to enhance the long term portfolio.

(5) agree that short term cash surpluses and deficits continue to bemanaged through temporary loans and deposits.

The Leader then moved the Council Tax resolution which was seconded by Cllr John Thomson.

Resolved:

Council Tax

(1) It be noted that on 13 December 2011 the Council calculated:

(a) the Council Tax Base 2012/13 for the whole Council area as 181,007.02 [Item T in the formula in Section 31B(3) of the Local Government Finance Act 1992, as amended (the "Act")] and,

(b) for dwellings in those parts of its area to which a Parish precept relates as in Appendix 4 to these minutes.

(2) Calculate that the Council Tax requirement for the Council’s own purposes for 2012/13 (excluding Parish precepts) is £221.270m.

(3) That the following amounts be calculated for the year 2012/13 in accordance with Sections 31 to 36 of the Act:

(a)	£919,345,080.00	(Gross Revenue Expenditure including parish precepts) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils).
(b)	£579,536,000.00	(Revenue Income) being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£339,809,080.00	(Net Revenue Expenditure including parish precepts) being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31A(4) of the Act).
(d)	£1,295.10	(Wiltshire Council Band D tax plus average Town & Parish Councils Band D Council Tax) being the amount at 3(c) above (Item R), all divided by Item T (2 above), calculated by the Council, in accordance with Section 31B(1) of the Act, as the basic amount of its Council Tax for the year (including Parish precepts), as shown below:

Band A

Band

863.40

1,007.30

1,151.20

1,295.10

1,582.90

1,870.70

2,158.50

2,590.20

Supporting documents: