Present:-

Councillors Brazil (In the Chair), Ball, Barisic, Berry, Biederman, Bowden, Boyd, Channon, Chugg, Clarance, Colthorpe, Dewhirst, Dezart, Diviani, Eastman, Edgell, Edmunds, Foggin, Greenslade, Hannan, Hannaford, Hawkins, B Hughes, Hill, Hone, Hook, Hosking, Julian, Knight, Mathews, Morse, Moulding, Owen, Radford, Randall Johnson, Sanders, Sellis, Squires, Vint, Way, Westlake, Wragg, Wright and Yabsley.

Ms Fontana (Primary Parent Governor representative, People s Scrutiny Committee)

Attending in accordance with Standing Order 25

Councillors Barker, Clatworthy, Croad, Davis, Hart, S Hughes, Leadbetter, McInnes, Parsons and Prowse

Apologies

Councillors Connett, Dempster, Gilbert and Rowe

Mrs Mabin (Church of England representative, People s Scrutiny Committee)

*1/15 2015/16 Budget

(Councillors Barker, Clatworthy, Croad, Davis, Hart, S Hughes, Leadbetter, McInnes and Parsons (Cabinet Members) attended in accordance with Standing Order 25(1) and spoke to this item at the invitation of the meeting).

Members noted that, in line with previous practice, the proposed budget for 2015/16 would again be subject to a collective, corporate scrutiny exercise at this joint meeting of Scrutiny Committees, providing an opportunity to comment on proposals for the Council s Budget in its entirety.

Individual Scrutiny Committees had previously examined the proposed budgets to identify any specific issues or areas of interest that might be considered at this joint meeting or for incorporation into any recommendations to Cabinet and Council. That consideration had followed the earlier circulation of a briefing for all Members of the Council on the budget prepared following the provisional settlement, complementing the Reports of the County Treasurer (CT/14/82 - text only | pdf CT/14/82) and (CT/15/1 - text only | pdf CT/15/1) relating to the settlement and the setting of spending targets for 2015/16 considered by the Cabinet on 10 December 2014 and 14 January 2015.

In addition to the Reports of the County Treasurer and relevant Officers and the detailed budget proposals considered by Scrutiny Committees in the current cycle (CT/15/11 - supplementary information CT/15/11), (CT/15/12 - supplementary information CT/15/12), (CT/15/3 - supplementary information CT/15/3) and (CT/15/4 - supplementary information CT/15/4) the joint meeting now also had before it a summary of issues and/or observations identified by those Committees, as summarised below, to inform discussion of a single, cohesive, set of recommendations to Cabinet and the Council on the overall implications of the budget proposals, if desired.

In considering the issues and/or observations identified by individual Scrutiny Committees and the further examination at this meeting, Members understood that service budgets sought not only to strike a balance with and between statutory and non-statutory functions, but to respond to pressures and demands upon services and the roles and contribution of partner organisations in the delivery of services, cognisant at all times of the impact of the Council s actions and expenditure on the residents of Devon and users of services.

The Reports referred to above outlined the provisional financial settlement made by Government within the current year and the spending targets set by the Cabinet for Place, People s and Corporate Services providing for inflation, commitments and service prioritisation reductions and reflecting also the different pressures and influences faced by those services. The announcement of the final settlement and Council Tax Regulations was due shortly although no significant change was anticipated.

Members also noted that while the 2010 Comprehensive Spending Review had anticipated real term reductions in funding only up to and including the 2014/15 financial year, the Chancellor s Autumn Statement of December 2014 had indicated that local government funding would continue to reduce well into the medium term but no indicative figures had been published for 2016/17. Beyond and that, irrespective of the outcome of the forthcoming General Election, all the indications were that existing spending plans would be maintained by any new Government for at least the next two financial years thereafter.

There was widely expressed concern and incredulity among all Members at the remarks of the Secretary of State for Communities Local Government in relation to the level of funding year on year where he had suggested that the Council had increased its 'spending power' by 0.5% against an average of a 2.1% reduction nationally. Scrutiny Committees had previously been advised by the County Treasurer that the way in which 'spending power' had been calculated did not, in her view, give a true indication of the way Government Grant had actually diminished because it included redirected NHS money and Council Tax revenues which understated the real level of grant reduction. A fairer underlying measure would have been to compare the baseline funding level which, on a like for like basis, had reduced by 14% over the previous year.

The targets for each service area, as set by Cabinet in December 2014 and re-affirmed in January 2015 were subject to different pressures and influences. The People s Services budget was 297,379,000 - providing for inflation and commitments of 15,994,000 and required budget savings of 32,111,000. The Place budget of 101,171,000 included inflation and commitments at 2,747,000 with required budget savings of 9,284,000 and removal of previous one-off spending of 540,000. Corporate Services budgets totalled 39,141,000 including inflation and commitments of 1,250,000 and required budget savings of 4,541,000. The ring-fenced Public Health Services budget was 22,060,000.

The specific issues and/or observations previously identified by individual Scrutiny Committees were as follows: namely

Corporate Services Scrutiny Committee

v acknowledging that the Corporate Services budget was predicated on the optimum level of service required to respond to the needs and demand of People and Place reflecting the challenge of delivering considerable budget reductions, the transformational change taking place across the Council and increased operational demands, particularly in child and adult safeguarding and the increasing frequency of legal challenges to decisions;

v that notwithstanding the above and noting the reduction in the Corporate Services Budget for 2015/16 in percentage terms was the largest of all service areas, in direct contrast with previous years, the Cabinet should satisfy itself that the apparent conflict was not detrimental to service delivery;

v that Members supported the view of the Health Wellbeing Scrutiny Committee that representations be made to Government on the low level of funding for Public Health services and that, also, representations should be made more generally on the impact of rurality on the delivery of services in counties like Devon and that sufficient funding was also made available for the provision of Medical Examiner services and for the additional pressures on the Coroners Service resulting from the Deprivation of Liberty Safeguards ;

v the need for investment in ICT to support the necessary transformational changes within the Council and enable more efficient ways of working and delivery of services;

v the potential loss of capital receipts accruing through Community Asset Transfers.

People s Scrutiny Committee

v whether or not the overall size of the People Services budget was sufficient to meet all the demands placed on it (and the size of the reductions required was appropriate in comparison with other services);

v the pressures on future years budgets of (a) the requirements of the Care Act, 2014 and (b) should the targets for reduced spending by the NHS be not achieved and available for recycling/use under the Better Care Fund;

v increasing demands and pressures on services for children and adults, particularly for the most vulnerable;

v the potential impact on the Adult Social Care budget in particular should the consolidation and cost reductions from external contracts be not achieved as anticipated;

v the adequacy of the inflation contingency and the impact of wage inflation on staffing costs; that, notwithstanding the welcome increase in 2015/16, future Dedicated Schools budgets should recognise the needs of rural areas for Devon maintained schools;

v recognising early intervention and the more dynamic application of new, improved working practices, had led to reduced caseloads and, for example, an overall reduction in the number of children requiring fostering placements;

v welcome the undertaking by the Cabinet Member for Children, Schools Skills that funding for the Reducing Exploitation and Absence from Care or Home (REACH) Team will be increased.

Place Scrutiny Committee

v recognition of the challenges facing Place Services in formulating budgets for 2015/16, acknowledging that reductions required as a consequence of the current public sector funding regime would inevitably impact on front line services, continuing the focus on community self-help where possible;

v concerns, in particular, that sufficient provision was made both to maintain a safe highway network and enable/promote the economic development of rural areas;

v a continuing need to communicate with the public over the impact of a reduced budget on service delivery;

v the need for the County Council to maximise income from the disposal of assets and attract external funding to offset budget reductions;

v the opportunities for savings through managing energy consumption and income generation from renewable energy/energy creation schemes across and throughout the County Council s estate/property portfolio;

v the potential for savings or re-allocation of funds should estimated expenditure on energy consumption for all Council services in 2015/16 reduce as a consequence of falling wholesale energy prices worldwide;

v Cabinet needed to satisfy itself that the introduction of any additional and/or increased costs for disposal of waste at recycling centres does not lead to an unacceptable increase in unauthorised fly-tipping;

v in acknowledging the proposals discussed and approved by Cabinet on 14 January 2015 relating to the public transport budget and school crossing patrols (Minutes *280 *282 refer) upon which consultations would be held to achieve proposed budget reductions and while expressing concerns at the potential withdrawal of bus services, the assurances previously given by the Cabinet Member were noted.

Health Wellbeing Scrutiny Committee

v acknowledging the flexibility within the budget to respond to identified needs and proposed variations from the current year to ensure value for money and reflect the Joint Strategic Needs Assessment;

v use of social media to get the Public Health message across and the part Pharmacies could play in promoting public health;

v the use of Public Health funding and strategies to raise awareness of the Prevention of Child Sexual Exploitation as proposed and complement the Health and Wellbeing Board s strategy and JSNA in this important area of activity;

v encouraging collaborative working with and between District Councils to support public health activity such as through the Devon Youth Games by use of District Public Health grants and innovative initiatives with the Dartmoor and Exmoor National Park Authorities to encourage access by all sections of the community to those areas to promote health wellbeing;

v Devon remained, largely as a result of historical factors, the 7th lowest (of 152 upper tier authorities) funded Local Authority for Public Health;

v the implementation and uptake of NHS Health Checks which compared favourably against other authorities despite the late start up in Devon, from a standstill position, and lack of NHS funding previously;

v the Council continue to make representations over the relatively low level of funding for that service, particularly in regard to rural local authorities, notwithstanding the views of the Department of Health.

Individual Scrutiny Committees had asked also for further reports on a number of the above issues, to enable those Committees to examine or review them in more detail, namely:

v implementation of the Energy Policy Task Group s recommendations and details of specific schemes being progressed and saving/income being achieved;

v the range of activity/work supported by the public health budget and the impact of the lower level of funding allocated to Devon through the funding formula in comparison to other Councils;

v the work of public health in relation to Mental Health services;

v issues arising from the introduction or failure to apply the Armed Forces covenant.

The Leader of the Council re-iterated his views that, within the current and projected public sector funding regime, it was becoming more and more difficult to achieve the reductions required and that he had already made representations to Devon s Members of Parliament about the difficult choices being faced in Devon; by way of example, he had explained to MPs the increasing financial burden being placed upon Councils through the national discretionary bus pass scheme which was not fully funded by Government. He welcomed the observations of the Scrutiny Committees which he confirmed would be taken into account in formulating a budget for consideration by Cabinet and the County Council.

In addition to the aforementioned, further specific matters or issues identified at this joint meeting included:

the need for Scrutiny Committees to closely monitor the delivery of the proposed budget, if approved by the Council;

a view that the Council could perhaps utilise its reserves and balances in more innovative ways to reduce the impact of future funding restrictions;

the need for Scrutiny Committees and Officers to continue to explore and identify potential areas for income generation to offset future spending reductions, wherever possible;

the demands on staff and resources of the Council in delivering the proposed budget against the background of major changes in service delivery and the corresponding need to raise awareness of where there could be limitations, now or in the future;

the apparent lack of understanding or awareness by Government of the impact of future spending restrictions on local communities of the size being suggested;

recognising the continuing need to work with the community and partners to deliver services while also acknowledging the views expressed by Cabinet Members that the approaches to community involvement demonstrated in the delivery of library and youth services and the take-up of Snow and Road Wardens Schemes and the success of joint working with other Councils (e.g. Trading Standards) were exemplars of the type of innovative approaches for the future delivery of services;

welcoming the move to 24 hour care which would hopefully contribute to a reduction in bed-blocking ;

acknowledging that in the last year the reduction in capital receipts arising from the sale of properties through Community Asset Transfers (previously raised at the Corporate Service Scrutiny Committee) was in the order of 700,000 which would have to be met from elsewhere in the budget.

Members noted and welcomed the assurances from the Cabinet Member for Highways Management and Flood Prevention that discussions were continuing with an existing licensee over suggested alternative arrangements for management of stopping places/picnic areas on the A361 (North Devon Link Road) which would be fully explored and considered before any final decisions were made.

All Members had been provided with an overview of impact assessments for all service areas referred to at the meeting - entitled Meeting the Challenge: Budget 2015/16 Impact Assessment in order that Scrutiny Committees not only had access to all necessary equality impact assessments undertaken as part of the budget s preparation but could have regard to and be satisfied that those assessments, risk assessments and projections were adequate and the evidence supported the assumptions made in the formulation of the budget, to meet the Public Sector Equality Duty imposed upon the Council under s149 of the Equality Act 2010. That required Members of the Council to 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. It was accepted that the preparation of Impact Assessments was necessarily a dynamic process and individual assessments for specific proposals may necessarily have to be developed and updated with time, with evidence gathered during any subsequent service reviews and engagement processes, supporting the proposed way forward.

The Council s vision Better Together which had been launched in May 2014 presented a set of desired outcomes for Devon and had proposed a new partnership with citizens and communities. The operating model underpinning that vision set out how the Council would have to change to meet these challenges and of the five themes of Better Together (resilient, healthy, prosperous, connected and safe) the resilience theme, in particular, would it was felt help mitigate against the negative effect of public sector cuts.

The Leader and Chairmen of Scrutiny Committees paid tribute to the efforts of all staff in formulating a viable budget for 2015/16 and in rising to the challenge of delivering services to those in need at a time of continuing and extensive change in local government in a period of austerity.

No member of the public had given notice of intention to speak to or make representations at this meeting on any matter relating to the proposed budget in line with the Council s Pubic Participation Scheme.

It was MOVED by Councillor Brazil, SECONDED by Councillor Moulding, and

RESOLVED

(a) that Scrutiny Committees note the provisional Government settlement and spending targets determined by the Cabinet on 10 December 2014 and re-affirmed on 14 January 2015,

(b) that Cabinet/Council be made aware of Scrutiny Committees collective concern that the effect of the severe reductions in local government funding in recent years and likely to be continued into the future will diminish significantly the flexibility and ability of this Council to meet the needs of its citizens; reinforcing the need for a fairer financial settlement for Devon that recognises the needs and costs of providing services in a rural area;

(c) that, accordingly, and in the absence of any intelligence from Government as to the likely levels of funding beyond the 2015/16 financial year, the Cabinet be urged to press Devon MPs to strongly support the case for additional resources set out below - as a minimum - needed for the benefit of the people of Devon and that should MPs feel unable to do so to make public their reasons for not doing so;

(d) that the specific observations of individual Scrutiny Committees set out above be commended to Cabinet, and in finalising its recommendations to Council, the Cabinet be also urged to have especial regard to the following:

(i) that the Cabinet/Council ensure adequate resources in terms of both finance and Member/Officer time is allocated to meet the needs of the most vulnerable, particularly in relation to safeguarding;

(ii) that the Cabinet/Council continue to press Government for a fairer allocation for Devon, recognising not only the impact of providing services in a rural area, but more especially in relation to public health where the level of funding for Devon is far below the national average and also that the Council is provided with sufficient resources to meet its statutory duties in relation to the new Medical Examiner Service and those placed upon HM Coroners Service through the 'Deprivation of Liberty Safeguards';

(iii) that expenditure on future energy costs be closely monitored in order that any savings accruing from falling energy prices worldwide may be used for the benefit of direct service provision in-year and not simply moved to balances at the year end;

(iv) that Cabinet honour the commitment given by the Cabinet Member for Children, Schools and Skills that additional provision will be made in the 2015/16 revenue budget for the Reducing Exploitation and Absence from Care or Home Service (REACH);

(v) that the Cabinet/Council is satisfied that the budgets prepared on the basis of the service targets (set by Cabinet) are sufficient to meet the demands placed on those services and that the apportionment of resources as between People, Place and Corporate Services is appropriate in light of the specific comments and concerns referred to above expressed by Scrutiny Committees;

(vi) that, acknowledging the options and/or alternatives discussed and identified in the proposed budgets and in the accompanying Reports and Impact Assessments referred to above and recognising also that this is a dynamic process, Scrutiny Committees again re-iterate the need for Cabinet to satisfy itself that all Assessments continue to be updated and are complied with and that the evidence gathered during this budget preparation exercise and any subsequent engagement processes supports the proposed way forward and that any consultations undertaken on proposals emanating from or to achieve budget reductions (e.g. the public transport budget) are real and meaningful and that any and all decisions are taken publicly by the Cabinet.

*DENOTES DELEGATED MATTER WITH POWER TO ACT

The meeting started at 10.00am and finished at 12.20pm

The Minutes of this Committee are published on the County Council's Website at:-

[NB: 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 or property owner in the administrative County of Devon, 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 the setting of members allowances].

2. The Impact Assessments referred to above are available at: http://new.devon.gov.uk/impact/].