Agenda item
- Meeting of Budget, Council, Thursday, 15th February, 2018 2.15 pm (Item 74.)
- View the declarations of interest for item 74.
(a) 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 ‘2018/19 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://new.devon.gov.uk/impact/published/budget-impact-assessment-201819/
(b) To receive and approve the Report of the County Treasurer (CT/18/11) together with the Minutes of the Cabinet held on 9th February 2018 relating to the budget and the Minutes of the Corporate Infrastructure and Regulatory Services Committee, containing all Scrutiny Budget Resolutions from 31st January 2018, attached.
The Report of the County Treasurer and Cabinet Minutes will follow.
Minutes:
[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 by virtue of 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 as a parent or a guardian of a child in care or in receipt of statutory sick pay or a state pension.].
(Councillor Atkinson declared a personal interest in this item by virtue of being a Devon County Council representative on Citizens Advice Exeter)
The Council considered the recommendations of the Cabinet held on 9 February 2018 relating to the Revenue Budget for 2018/19, the Medium Term Financial Strategy to 2021/22 and the Capital Programme 2018/19-2022/23 as set out at Minute 125 of that meeting, together with the Report of the County Treasurer (CT/18/11) which included an assessment of the adequacy of reserves, a range of prudential indicators concerning the financial implications of the capital programme and an assessment of the risks associated with the budget strategy and how those would be managed, comprising in detail:
Introduction
Appendix A - Specimen Statement on Robustness of Budget Estimates &
adequacy of the County Council Reserves
Appendix B - Revenue Budget 2018/19
Appendix C - Summary Revenue Budget 2018/19
Appendix D - Medium Term Financial Strategy 2018/19 -2021/22
Appendix E - Risk Analysis of Volatile Budgets
Appendix F - County Fund Balance and Earmarked Reserves for 2018/19
Appendix G - Capital Programme 2018/19 - 2022/23
Appendix H - Treasury Management Strategy & Prudential Indicators 2018/19 –
2022/23
Appendix I - Fees and Charges
The County Treasurer’s Report (CT/18/11) and accompanying detailed service budgets and spending plans incorporated additional spending in the sum of £6.5millions for Highways, as suggested by the Council’s Scrutiny Committees and also £2.2millions for adult care support services, as proposed at the Cabinet on 9 February 2018.
The Council also had before it the overview of impact assessments relating to the 2018/19 budget; which had been circulated and drawn to the attention of all Members of the Council for the purposes of the consideration of the budget by Scrutiny Committees, by the Cabinet and by this County Council. This was in order that Members might have access to all necessary equality impact assessments, including specific impact assessments undertaken as part of the budget’s preparation so that they might, in turn, have full regard to the responsibilities placed upon the Council to exercise its Public Sector Equality Duty in considering the proposals and their impact, before making a decision on the budget. The Impact Assessment had been circulated to Members prior to this meeting, together with all assessments published in relation to the budget, and was available at https://new.devon.gov.uk/impact/published/budget-impact-assessment-201819/
The Chairs of the Children’s Scrutiny Committee, Health and Adult Care Scrutiny and Corporate Infrastructure and Regulatory Services Scrutiny having MOVED and it having been duly SECONDED that the Minutes of the those budget Scrutiny Committee meetings held on 23rd, 25th and 31st January 2018 relating to the annual estimates be approved, the motion was subsequently put to the vote and declared CARRIED.
The Chair of the Council MOVED and it was duly SECONDED that in accordance with Standing Order 30, Standing Order 14(4) be suspended to permit more than one motion or amendment to be debated at the same time.
The Motion was put to the vote and declared CARRIED.
The Chair then 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 Clatworthy SECONDED that Cabinet Minute 125 (a) – (u) setting out the proposed revenue and capital budgets as detailed in Report (CT/18/11) be approved.
In commending the proposed budget to the Council, the Leader commented this was the ninth year of reduced spending for Devon and the grant from Government in its current form would be phased out by 2020. He added that the business rates pilot funding was unknown beyond the forthcoming financial year and spend should be used for growth. He commended the budget to the Council as one that supported the old, young and the vulnerable.
The Cabinet Member for Resources & Asset Management highlighted that the Local Government financial settlement was £122.492 millions, in line with expectations. He also reported that the Authority, in partnership with the eight Devon District Councils and two Unitary Councils, had been selected to become a Business Rates Pilot in 2018/19. He reiterated that Devon’s settlement still reflected historic low levels of funding with inadequate funding levels in a number of areas; between urban and rural areas, in public health and also education funding.
He further outlined the total revenue budget of £511.841 millions and service budgets totalling £477.391 millions and the overall capital programme for 2018/2019 as £105.640 million.
Service budgets included Children’s Services at £125.487 millions (an increase of 5.5% from 2017/18), Adult Care and Health at £227.851 millions (an increase of 6.1%), Communities, Public Health, Environment and Prosperity Services was £34.727 millions (a reduction of 2.3%), Corporate Services base budget of £34.618 millions (an increase of 1.7%) and Highways, Infrastructure Development and Waste Services at £54.708 millions (a reduction of 2.7%).
The Cabinet Member further confirmed £10,000 for each Member in respect of locality budgets, a further £10,000 for capital schemes and also the continuation of the Town and Parish (TAP) fund, to be renamed the ‘Communities Together Fund’.
The budget included a 2% increase in the Social Care precept for 2018/19. Authorities were allowed to increase the Social Care precept by no more than 3% per annum (but no more than 6% over the period 2017/18 to 2019/20). The Council had increased the Adult Social Care Precept by 3% in 2017/18. If the Adult Social Care Precept increased by 2% in 2018/19 then there could only be a 1% increase in 2019/20. The settlement had set the Council Tax increase that would trigger a referendum, excluding the Social Care Precept, at 3% for 2018/19; an increase of 1%, therefore the proposal was for a 2.99% rise as well as the Social Care Precept of 2%.
A Band D Council Tax would, if the budget was approved, increase by 4.99% to £1,331.19p. The Council Tax requirement for the Council was £382,118,036.26 and re-iterated that the s151 Officer had also confirmed that it represented a sound and achievable finance plan for 2018/19.
The Leader of the Council paid tribute to and expressed his gratitude to the County Treasurer, her staff and all those Officers involved in the preparation and management of budgets over previous years and recognised also the exceptionally difficult circumstances of preparing a budget for 2018/19 in light of the delay in the final announcement by Government of the financial settlement and grants.
Members then formally moved, each duly seconded, amendments as shown below which were subsequently the subject of one debate as agreed above.
Councillor Connett MOVED and Councillor Brazil SECONDED that Cabinet Minute 125 (Revenue Budget and Medium Term Financial Strategy to 2018/19 – 2021/22 and Capital Programme 2018/19 – 2022/23) be amended by the addition of the following and all necessary changes be made to the detailed budgets referred to at 125(a) – (u):
We hope Devon County Council and its contractors will rise to the challenge of fully utilising the new funding in light of last week’s announcement that 1 in 3 of the Pothole Action Fund schemes would be delayed, along with £800,000 expenditure, until the next financial year.
While welcoming the limited additional funding secured from Government for schools and care services in Devon, the continuing struggle to maintain the provision of good quality services becomes harder.
Devon's Members of Parliament can do more to stop the County being 'short changed' by this Government. While saying they are willing to vote against investment in the new HS2 rail infrastructure, Conservative MPs appear unwilling to use their power to secure fair funding for Devon, especially our schools and care services.
Against this backdrop, it is understandable, though avoidable, that Council Tax for Devon County Council is proposed to increase by £18.1million or 4.99% from April. Combined with increases for City, District and Borough councils, the Police and the Fire Service, the joint impact on households is, once more, punishing.
Short-changing Devon simply passes the burden to the County's residents. In effect, the Government is balancing the books on the backs of hard-pressed families and the poorest. Overall, the Council Tax burden in Devon for an average Band D property could see an extra £80 paid each year – around £7 a month.
We propose:
1. Restoring £223,000 to protect Young People's Mental Health services by scrapping the cut planned by Devon's Conservatives from the Public Mental Health budget.
2. Adding £500,000 for the education of children with special educational needs.
3. Supporting our schools, teachers and children by returning the £2.2million cut from the Devon schools budget this year by Conservatives at County Hall.
4. Creating a hardship fund of £50,000 to support young people in Post-16 education with home to college travel.
We will fund this investment of £2,973,000 million by:
1. Cutting waste currently being allowed by County Hall and efficiency savings:
- Save £750,000 by cutting the budget for expensive consultants and stand-in managers
- Cut spending on media, public relations and advertising by £850,000
- Reduce spending on room hire and save £ 260,000
- Save £64,000 from car allowances when it is clear 143 staff use their cars very little for work purposes. Most drive less than 10 miles a week, with 23 driving fewer than 2 miles a week on council business!
2. Transferring £899,000 a year from the Economic Development budget into the higher priorities.
A strong and vibrant economy is vital for Devon, which needs to be not only open for business but fit for business with good roads, good education and a reputation as a county that cares.
We believe a new approach is needed to drive economic development, seeing the city, district and borough councils and the Local Enterprise Partnership as the driving force, with support from Devon County Council.
Costs for the transformation of the Economic Development service will be charged to the council's Service Transformation Reserve, currently at £11.9 million.
3. Saving a further £150,000 from the Development Management service and seeking stronger planning partnerships with Devon’s Local Planning Authorities and neighbouring county and unitary councils to create cut costs through shared service arrangements.
Council Tax on Second Homes
There is concern that second homes, left empty, have a negative impact on communities and that some owners may avoid Council Tax by ‘flipping’ to Business Rates and then seek exemption from payment.
We call on Devon County Council to take the lead working with all local authorities in the South West, calling on Government to urgently review Second Home Council Tax to ensure the system is robust and that much needed revenue is not lost, placing an even bigger burden on local residents.
Councillor Hannaford MOVED and Councillor Atkinson SECONDED that Cabinet Minute 125 (Revenue Budget and Medium Term Financial Strategy to 2018/19 – 2021/22 and Capital Programme 2018/19 – 2022/23) be amended by the addition of the following and all necessary changes be made to the detailed budgets referred to at 125(a) – (u):
The Labour Group wish to focus on two key themes of Prevention and Resilience, hence the submission of two separate budget amendment focusing on each of those key themes.
In order to strengthen the Prevention agenda the Council should;
1. allocate £500,000 from the Business Rates Retention Pilot to Early Intervention Work.
2. allocate £100,000 from the Business Rates Retention Pilot to Social Workers Professional Development.
3. allocate £250,000 from the Business Rates Retention Pilot to Social Worker Caseload Reduction.
4. allocate £200,000 from the Business Rates Retention Pilot to Suicide Prevention Work.
5. allocate £200,000 from the Business Rates Retention Pilot to Teenage Risk Pathway work.
6. allocate £230,000 from the Business Rates Retention Pilot to Young Peoples Mental Health.
7. allocate £400,000 from the Business Rates Retention Pilot to Domestic Abuse and Sexual Violence prevention work, with a specific focus on work with perpetrators and supporting children and young people.
8. allocate £500,000 from the Business Rates Retention Pilot to Public Health.
Councillor Hannaford then MOVED and Councillor Ackland SECONDED that Cabinet Minute 125 (Revenue Budget and Medium Term Financial Strategy to 2018/19 – 2021/22 and Capital Programme 2018/19 – 2022/23) be amended by the addition of the following and all necessary changes be made to the detailed budgets referred to at 125(a) – (u):
In order to strengthen the Resilience agenda the Council should;
1. allocate £400,000 from the Business Rates Retention Pilot to Citizens Advice Devon.
2. allocate £200,000 from the Business Rates Retention Pilot to the Healthy New Towns initiative.
3. allocate £500,000 from the Business Rates Retention Pilot to develop Children’s Centres Community Service Delivery.
4. allocate £30,000 from the Business Rates Retention Pilot for an InSourcing Council Services Feasibility Study.
5. allocate £400,000 from the Business Rates Retention Pilot to support Special Educational Needs Employment and Skills.
6. allocate £300,000 from the Business Rates Retention Pilot to increase members individual locality budgets from £10,000 to £15,000.
7. allocate £ 40,000 from the Business Rates Retention Pilot for an Alternative Social Care Delivery Models Feasibility Study.
Councillor Biederman MOVED and Councillor Wright SECONDED that Cabinet Minute 125 (Revenue Budget and Medium Term Financial Strategy to 2018/19 – 2021/22 and Capital Programme 2018/19 – 2022/23) be amended as detailed below and all necessary changes be made to the detailed budgets at 125(a) – (u):
A - That this Council does not put a further £5millions into reserves, at the same time as asking hard pressed, low paid Devon residents to pay more council tax for fewer services than ever before.
B – that part of the five millions issued to maintain the level of pay for all Devon’s Foster Parents, so no one sees a drop in their income.
C – That part of the five millions is used to maintain numbers of Health Visitors so that no posts are made redundant.
D – that part of the five millions is used to maintain the schools counselling services, currently likely to be lost via the public health budget
E - that this council writes an open letter to Devon MPs expressing deep disappointment with those who voted in favour of cuts to Devon’s council core funding
F - that any remaining monies as part of the £5millions or any other money extra coming from the business retention scheme is transferred to repairing pavements in our city, town & Village Centres to encourage their economy and prevent Slips, trips and falls.
Thereafter, the matter having been debated and the proposals, options and/or alternatives set out in the amendments referred to above having been explored, argued and considered alongside all other relevant factors (e.g. financial, sustainability, carbon impact, risk management, equality and legal considerations and Public Health impact) set out in the County Treasurer’s Report and/or referred to above having been considered:
The amendment in the name of Councillor Biederman 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 as for, against or in abstention to the aforementioned Motion/Amendment as follows):
For the amendment, Councillors Ackland, Asvachin, Atkinson, Aves, Biederman, Brennan, Connett, Dewhirst, Greenslade, Hannaford, G Hook, J Hook, Shaw, Way, Whitton and Wright: (Total: 16)
Against the amendment Councillors Ball, Barker, Berry, Bloxham, Brook, Channon, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Radford, Randall Johnson, Russell, Sanders, Saywell, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)
The amendment in the name of Councillor Hannaford (Prevention) 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 as for, against or in abstention to the aforementioned Motion/Amendment as follows):
For the amendment, Councillors Ackland, Asvachin, Atkinson, Aves, Biederman, Brennan, Connett, Dewhirst, Greenslade, Hannaford, G Hook, J Hook, Shaw, Way, Whitton and Wright: (Total: 16)
Against the amendment Councillors Ball, Barker, Berry, Bloxham, Brook, Channon, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Radford, Randall Johnson, Russell, Sanders, Saywell, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)
The amendment in the name of Councillor Hannaford (Resilience) 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 as for, against or in abstention to the aforementioned Motion/Amendment as follows):
For the amendment, Councillors Ackland, Asvachin, Atkinson, Aves, Biederman, Brennan, Connett, Dewhirst, Greenslade, Hannaford, G Hook, J Hook, Shaw, Way, Whitton and Wright: (Total: 16)
Against the amendment Councillors Ball, Barker, Berry, Bloxham, Brook, Channon, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Radford, Randall Johnson, Russell, Sanders, Saywell, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)
The amendment in the name of Councillor Connett 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 as for, against or in abstention to the aforementioned Motion/Amendment as follows):
For the amendment, Councillors Ackland, Asvachin, Aves, Biederman, Brennan, Connett, Dewhirst, Greenslade, Hannaford, G Hook, J Hook, Shaw, Way, Whitton and Wright: (Total: 15)
Against the amendment Councillors Ball, Barker, Berry, Bloxham, Brook, Channon, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Radford, Randall Johnson, Russell, Sanders, Saywell, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)
Abstain from voting Councillor Atkinson (Total: 1)
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 as for, against or in abstention to the aforementioned Motion/Amendment as follows):
For the Motion,Councillors Ball, Barker, Berry, Bloxham, Brook, Channon, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Radford, Randall Johnson, Russell, Sanders, Saywell, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)
Against the Motion, Councillors Ackland, Asvachin, Aves, Biederman, Brennan, Connett, Dewhirst, Greenslade, Hannaford, G Hook, J Hook, Way, Whitton and Wright: (Total: 15)
Supporting documents:
PDF 2 MB