Agenda item

In the exercise of its Public Sector Equality Duty, as set out below, the County Council must have full regard to and consider the impact of any proposals in relation to equalities prior to making any decisions and any identified significant risks and mitigating action required. The overview of the impact assessments for all service areas entitled ‘2023/24 Budget Impact Assessment’ has been circulated separately and is available to all Members of the Council for consideration under this item (alongside any specific equality impact assessments undertaken as part of the budget’s preparation) at https://www.devon.gov.uk/impact/budget-setting-2023-2024/.

 

To receive and approve the Report of the Director of Finance and Public Value (DF/23/19) together with the Minutes of the Cabinet held on 10th February 2023 relating to the budget.

 

Minutes from the recent Scrutiny Budget meetings (Children’s Scrutiny, Health and Adult Care and Corporate Infrastructure and Regulatory Services) are also attached for the information of Members which contain the Scrutiny Budget Resolutions, attached.

 

The Report of the Director of Finance and Public Value will follow.

 

The Cabinet Minutes will be available to view (shortly after the Cabinet meeting on the 10^th February 2023) at; https://democracy.devon.gov.uk/ieListDocuments.aspx?CId=133&MId=4465&Ver=4

(Councillor Wilton-Love declared a personal interest in this matter by virtue of working in the Health and Social Care field)

 

Councillor Hart MOVED and Councillor Twiss SECONDED that Cabinet Minute 281 (1-21) setting out the proposed revenue and capital budgets as detailed in Report (DF/23/19) be approved.

 

The MOTION in the name of Councillor Hart was then put to the vote and declared CARRIED.

All Members of the Council had been granted a dispensation to allow them to speak and vote in any debate on the setting of the Council Tax or Precept or any fees and charges arising therefrom as a consequence of simply being a resident of or a land, business or property owner in the administrative County of Devon or by being a County Council representative on a local authority company or joint venture or by being a parent or guardian of a child in a school on any matter relating to school meals and school transport, or in

relation to being an approved foster parent, providing placements for the Council’s Children in Care or in relation to the setting of members’ allowances or the receipt of allowances from another Authority or as a parent or a guardian of a child in care or in receipt of statutory sick pay or a pension.

 

(Councillor Wilton-Love declared a personal interest in this matter by virtue of working in the Health and Social Care field)

 

The Council considered the Minutes of the Cabinet meeting (Minute 281 (1-21) of 10th February 2023), together with the Report of the Director of Finance and Public Value on the Revenue Budget and Medium-Term Financial Strategy 2023/24 - 2026/27 and Capital Programme 2023/24 - 2027/28 (DF/23/19).

 

This included an assessment of the adequacy of reserves, a range of prudential indicators concerning the financial implications of the capital programme and an assessment that identified risks associated with the budget strategy, together with how the risks would be managed.

 

The budget book contained details of the County Council’s revenue and capital budgets together with associated financial and operational information.

 

The detail of the budget book included:

 

•      Revenue Budget Overview;

•      Statement on the Robustness of the Budget Estimates, the Adequacy of Reserves and Affordability of the Capital Strategy;

•      Capital Programme Overview 2023/24 - 2027/28;

•      Service Budgets;

•      Fees & Charges;

•      Medium Term Financial Strategy 2023/24 - 2026/27;

•      County Fund Balance and Earmarked Reserves 2023/24;

•      Treasury Management Strategy 2023/24 - 2026/27 and Prudential Indicators 2023/24 - 2027/28;

•      Capital Strategy 2023/24 - 2027/28;

•      Risk Analysis of Volatile Budgets; and

•      Abbreviations

 

The Chair of the Council MOVED that the Minutes of the Health and Adult Care Scrutiny, Children’s Scrutiny Committee and Corporate Infrastructure and Regulatory Services Budget Scrutiny Committee meetings held on the 20^th, 26^th and 30^th January 2023 relating to the annual estimates be approved.

 

The MOTION was subsequently put to the vote and declared CARRIED.

 

The Council noted that the Corporate Infrastructure and Regulatory Services Scrutiny Committee had, at that meeting on 30^th January 2023, considered and endorsed the proposed Treasury Management Strategy for 2023/24, prior to determination of the budget for that year.

 

The Council further noted that the Council’s financial plans had been drawn up with reference to the County Council’s major policies and objectives, the County Council’s performance framework, demographic changes occurring within the County; and consultation with local residents, businesses and other stakeholders.

 

The final Local Government Finance Settlement 2023/24 was published on 6th February 2023 and was a single year settlement. The table on page 6 set out the final settlement for Devon’s Core Funding of £107.2 million and other grants such as the New Homes Bonus, Rural Services Delivery Grant, Social Care Grant, Improved Better Care Fund, Adult Social Care Market Sustainability and Improvement Fund, Adult Social Care Discharge Fund and Services Grant.

 

Detailed budgets had been produced within the Targets set by Cabinet in January 2023 which were shown on pages 40 to 85. The targets set for each service area had been subject to different pressures and influences. The table on page 7 showed the 2023/24 Budget Targets by service area.

 

The risks associated with the delivery of the 2023/24 budget and the mitigating action needed to try to contain that risk was detailed on pages 151 to 175.

 

Key Table 1 on page 9 showed the estimated level of spending on services and other items such as Capital Financing and Interest on Balances. Capital Financing Charges were dependent on the Authority's Capital Programme explained on pages 20 to 36.

 

Factors that influenced the income gained from balances were set out on pages 120 to 138 that explained the Authority's Treasury Management Strategy.

 

Pages 114 to 119 explained the Authority's strategy for its reserves and balances and Key Table 3 summarised the Authority's Reserves and Balances.

 

The Authority's approach to the Medium-Term Financial Strategy (MTFS) was detailed on pages 87 to 113 and Key table 4 was the financial representation of the current MTFS.

 

The Authority not only received Core Funding but also specific grants that related to particular activities and these were detailed in Key Table 5 on

pages 13 and 14. The most significant being the Dedicated Schools Grant.

 

Key Table 2 set out the Council Tax Requirement, Tax Base, Council Tax by

band and individual District Precepts.

 

Councils were able to raise the Adult Social Care Precept by an additional 1% above the 1% that had been previously announced, which meant that upper tier Councils could raise Council Tax by up to 4.99% in total for 2023/24.

 

A Band D Council Tax would, if the proposed budget was approved, increase by 4.99% to £1,634.13. The Council Tax requirement for the Council was £491,805,166.53.

 

The Council acknowledged that a Budget 2023/24 Impact Assessment had been prepared previously and taken into account by Scrutiny Committees as part of their earlier deliberations together with those specific impact assessments undertaken as part of the budget’s preparation or in relation to service reviews arising therefrom: to ensure all Members had all relevant information in having regard to the responsibilities placed upon the Council to exercise its Public Sector Equality Duty under s149 of the Equality Act 2010 when considering the proposed budget, its impact and any mitigating action required, prior to making a decision. The preparation of Impact Assessments was necessarily a dynamic process and that individual assessments for specific proposals may necessarily have to be developed and updated with time.

 

The Impact Assessment had been made available to all Members of the Council for the purpose of the Scrutiny meetings, the Cabinet meeting on 10th February 2023 and this County Council meeting and was available at https://www.devon.gov.uk/impact/budget-setting-2023-2024/

 

The Chair indicated that he would exercise his discretion to enable the Leaders and budget spokespersons of the political groups to speak for longer than 7 minutes, if desired.

 

Councillor Hart MOVED and Councillor Twiss SECONDED that Cabinet Minute 281 (1-21) setting out the proposed revenue and capital budgets as detailed in Report (DF/23/19) be approved.

 

In commending the proposed budget to the Council, the Leader commented that whilst the Council wished to utilise the opportunity to increase Council Tax by 4.99%, the Council would be spending 10.5% extra on services.

 

He added that since February last year, circumstances had changed exceptionally quickly with the war in Ukraine and the impact of this with inflation and the energy crisis had all placed pressure across the Authority.

 

The Leader paid tribute to the whole of the Leadership Team and Cabinet colleagues for working together in producing the budget adding that there was a need to focus on the old, the young and the vulnerable and he therefore commended the budget to the Council.

 

The Cabinet Member for Finance added that the Council had pulled together as an Authority to ensure it continued to provide the best services possible within the finite resources available. He also said the cross-organisation response to the financial pressures meant the Council was better placed to meet the challenges in the year ahead.

 

He added that increasing Council Tax bills at a time of rising prices and strain on household budgets was not a decision that had been taken lightly, but in order to protect the most vulnerable there was little choice but to propose the increase of 4.99% for next year.

 

He updated the Council on the Government settlement, as outlined in the budget book, as well as the service targets.

 

He commented on the matters of concern to Members and reported an extra £2 million into drainage and cyclic maintenance (Potholes), an extra £100,000 for the Citizens Advice Bureau; and £150,000 for a new Growing Communities Together Programme that would provide small grants for vital community initiatives.

 

He reported that the Authority’s financial resilience (reserves), shown on page 114, were diminished and should only be used to cushion the impact of unexpected events and emergencies. Concern also remained around the level of cumulative SEND High Needs deficit that was expected to reach £127 million by the end of the financial year.

 

He concluded that the budget had received the necessary statement of assurance from the Director of Finance and Public Value. 

 

Both the Leader of the Council and Cabinet Member for Finance paid tribute to, and expressed gratitude to, the Director of Finance and Public Value, her staff and all those Officers involved in the preparation, management and monitoring of budgets over previous years and recognised also the exceptionally difficult circumstances of preparing a budget for 2023/24. Group Leaders also echoed the words of the Leader in thanking the Director of Finance for their exceptional work in bringing the budget together.

 

Members then formally moved, and duly seconded, the amendment as shown below.

 

Councillor Brazil MOVED and Councillor Wrigley SECONDED that Cabinet Minute 281 (Revenue Budget and Medium Term Financial Strategy 2023/24 - 2026/27 and Capital Programme 2023/24 - 2027/28) be amended by the addition of the following and all necessary changes be made to the detailed budgets.

 

1. Additional funding of £2m for potholes and other highways maintenance.

 

2. An additional £1m provided to support 20mph limits and zones for communities which want them 

  

(Total cost £3 million) 

 

We will pay for these priorities by:

 

1. Cutting the Council’s Citizens Engagement budget by £500,000

 

2. Drawing down £2.5 million from the Budget Management Reserve

 

The AMENDMENT in the name of Councillor Brazil was then put to the vote and declared LOST.

 

(NOTE: In accordance with Standing Order 32(5) and any vote relating to the setting of the Council Tax or level of precept, Councillors voted for, against or in abstention to the aforementioned Amendment as follows):

 

For the amendment; Councillors Bailey, Biederman, Brazil, Connett, Cox, Dewhirst, Gent, Leaver, Letch, Roome, Thomas and Wrigley) (Total: 12)

 

Against the amendment; Councillors Adams, Asvachin, Atkinson, Aves, Barnes, Berry, Brook, Bullivant, Chesterton, Chubb, Crabb, Croad, Davis, Gilbert, Gribble, Hannaford, Hart, Hartnell, Hawkins, Hellyer, Hughes, Khan, Leadbetter, McGeough, McInnes, Morrish, Peart, Radford, Randall Johnson, Samuel, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Whitton, Wilton Love and Yabsley (Total: 41)

 

Abstained from Voting; (Total: 0)

 

The MOTION in the name of Councillor Hart was then put to the vote and declared CARRIED.

 

(NOTE: In accordance with Standing Order 32(5) and any vote relating to the setting of the Council Tax or level of precept, Councillors voted for, against or in abstention to the aforementioned Motion as follows):

 

For the Motion; Councillors Adams, Asvachin, Atkinson, Aves, Barnes, Berry, Brook, Bullivant, Chesterton, Chubb, Crabb, Croad, Davis, Gilbert, Gribble, Hannaford, Hart, Hartnell, Hawkins, Hellyer, Hughes, Khan, Leadbetter, McInnes, Morrish, Peart, Radford, Randall Johnson, Samuel, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Whitton, Wilton Love and Yabsley (Total: 40)

 

Against the Motion; Councillors Bailey, Biederman, Brazil, Connett, Cox, Dewhirst, Gent, Leaver, Letch, McGeough, Roome, Thomas and Wrigley: (Total: 13)

 

Abstained from Voting; Councillors: (Total: 0)