Issue - meetings

Revenue Budget, Medium Term Financial Strategy 2024/2025 - 2027/2028 and the Capital Programme for 2024/2025 - 2028/2029

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 ‘2024/25 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 Budget 2024-2025 - Impact Assessment (devon.gov.uk) (https://www.devon.gov.uk/impact/budget-2024-2025/)

To receive and approve the Report of the Director of Finance (DFP/24/16) together with the Minutes of the Cabinet held on 9^th February 2024 relating to the budget.

Minutes from the recent Scrutiny Budget meetings (Children’s Scrutiny – 18^th January 2024, Health and Adult Care Scrutiny – 24 January 2024 and Corporate Infrastructure and Regulatory Services on 25 January 2024) are also attached for the information of Members which contain the Scrutiny Budget Resolutions.

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

The Cabinet Minutes will be available to view at Cabinet - 9th February 2024 (https://democracy.devon.gov.uk/ieListDocuments.aspx?CId=133&MId=4713&Ver=4) shortly after the meeting takes place on the 9^th February 2024.

Additional documents:

Decision:

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

(Councillor Hodgson declared a personal interest in this matter by virtue of being a Member of South Hams District Council and intending to mention the Authority in the debate).

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

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 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 / carer 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.

Members were also reminded of the need to be compliant with the requirements of the Local Government Finance Act 1992 (section 106).

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

(Councillor Hodgson declared a personal interest in this matter by virtue of being a Member of South Hams District Council and intending to mention the Authority in the debate).

The Council considered the Minutes of the Cabinet meeting (Minute 475 (1-20) of 9th February 2024), together with the Report of the Director of Finance and Public Value on the Revenue Budget and Medium-Term Financial Strategy 2024/25 - 2027/28 and Capital Programme 2024/25 - 2028/29 (DFP/24/16).

The budget book contained details of the County Council’s revenue and capital budgets together with associated financial and operational information. The Leadership commentary highlighted this was a time of significant challenge for local government as a whole and preparing for the financial year 2024/25 had meant a continuation of plans to make savings by getting best value from all contracts, maximising income, reducing the number of employees, and selling Council owned property.

The overriding focus was to meet the needs of the young, old and most vulnerable across Devon, working closely with NHS partners to support and develop the local health and care system. Work would also continue with Team Devon to help support the local economy, improve job prospects and housing opportunities for local people, respond to climate change, champion opportunities for young people, and address the impacts of the rising cost of living for those hardest hit.

The detail of the budget book included:

• Strategic Leadership Team Introduction

• Revenue Budget Overview;

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

• Capital Programme Overview 2024/25 - 2028/29;

• Service Budgets;

• Fees & Charges;

• Medium Term Financial Strategy 2024/25 - 2027/28;

• County Fund Balance and Earmarked Reserves;

• Treasury Management Strategy 2024/25 - 2027/28 and Prudential Indicators 2024/25 - 2028/29;

• Capital ... view the full minutes text for item 257

Meeting: 09/02/2024 - Cabinet (Item 475)

Webcast for 09/02/2024 - Cabinet

475 Revenue Budget, Medium Term Financial Strategy 2024/2025 - 2027/2028 and the Capital Programme for 2024/2025 - 2028/2029 PDF 75 KB

The Report of the Director of Finance and Public Value (DFP/24/15) on the Council’s Budget and Service Budgets for 2024/25 will follow.

Cabinet is also asked to note the role of the Corporate Infrastructure and Regulatory Services Scrutiny Committee on 25^th January 2024 (Minute *151) in reviewing and endorsing the Report of the Director of Finance and Public Value (DFP/24/06) on the Treasury Management and Investment Strategy for 2024/25 and commending it to the Cabinet, alongside the recognition of the significant work of the Treasury Team.

The Cabinet will accordingly also consider:

(a) Budget 2024/25 Impact Assessment’ – previously circulated and available at Budget 2024-2025 - Impact Assessment (devon.gov.uk) / https://www.devon.gov.uk/impact/budget-2024-2025/, attached.

(b) Outcomes of the Budget Consultation Meetings with representatives of the Devon Business Community, the Voluntary Sector and Trade Unions (LDS/24/11), attached.

(d) Minute 118(e) of the Devon Education (Schools) Forum, held on 24 January 2024. The Cabinet is asked to note that the transfer of 0.25% (£1.3 million) between blocks for 2024-25, to support the Safety Valve plans to manage the high needs funding sustainably and meet the needs of children and young people earlier was approved.

Additional documents:

Decision:

RESOLVED

that Cabinet:

(i) has given full regard to the responsibilities placed upon the Authority in the exercise of its Public Sector Equality Duty under s149 of the Equality Act 2010 (as set out in the ‘Budget 2024/25 Impact Assessment’ circulated previously for the purposes of this meeting, and specific impact assessments undertaken as part of the budget’s preparation) in considering the proposals and their impact, before making a decision;

(ii) has given due regard to the views of the Authority's Scrutiny Committees, the Devon Education Forum, the Business Community, the Voluntary Sector, and the Trades Unions and other consultees on the budget (set out elsewhere on the agenda);

(iii) that the Provisional Finance Settlement Funding of £111.1 million be noted, and that the Final Finance Settlement is anticipated to be confirmed on 7 February 2024;

(iv) that the Revenue Budgets, (pages 44 to 92), be approved;

(v) recommends to the Authority the Net budget of £637.5 million as set out in Key Table 1 on page 13, and gives delegated authority to the Director of Finance and Public Value to reflect any changes to the Net Budget resulting from the Final Settlement, in consultation with the Leader and Lead Member for Finance;

(vi) recommends to the Authority that the Council Tax requirement be set at £523,974,264.98 as set out in Key Table 2 page 14, and that the Council approves a tax rate increase of 4.99% comprising 2.99% increase for the general rate and 2% increase for the Adult Social Care Precept, as set out in Key Table 2 (page 14).

(vii) recommends to the Authority the precepts required from each District Council and the levels of county Council Tax for each of the eight property valuation bands consequent upon the budget as amended by adjustments in collection in the current year, as set out in Key Table 2 (page 14);

(viii) notes there are no new Fees & Charges proposed for 2024/25;

(ix) notes that in line with the Authority's Financial Regulations, changes to existing fees and charges will be agreed by the appropriate Cabinet Member and Chief Finance Officer via a Delegated Decision;

(x) notes the Medium Term Financial Plan 2024/25 – 2027/28 as summarised in Key Table 4 (page 16) and set out in detail on pages 96 to 123;

(xi) takes account of the risks outlined on pages 166 to 189 in determining the final service budgets, levels of reserves and Council Tax figure to be recommended to the Authority;

(xii) notes the County Fund Balance and Earmarked Reserves 2024/25, as set out on pages 124 to 130;

(xiii) recommends to the Authority the Capital Programme Overview 2024/25 - 2028/29, set out on pages 25 to 42;

(xix) recommends to the Authority the Capital Programme for 2024/25 of £155.2 million and how it is financed as shown in Summary Table D on page 34;

(xv) approves, for planning purposes, the indicative Capital Programmes for, 2025/26, 2026/27, 2028/29 and 2029/30 shown in summary ... view the full decision text for item 475

Minutes:

(Councillors Biederman, Dewhirst, Hodgson, Leaver, Letch and Whitton attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered and had regard to:

· a 2024/25 Budget Impact Assessment, which had been circulated to all Members of the Council prior to the meeting and was available at https://www.devon.gov.uk/impact/budget-2024-2025 undertaken as part of the budget’s preparation;

· the Report of the Director of Legal and Democratic Services (LDS/24/11) summarising the outcomes of, and comments/observations made at consultation meetings with representatives of Devon’s Business Community, Trades Unions and Representatives of the Voluntary Sector;

· the discussions of the Council’s Scrutiny Committees (LDS/24/10) held on 18th January 2024, 24th January 2024 and 25th January 2024, the recommendations being summarised and attached to the agenda;

· The Cabinet also noted Minute 118(e) of the Devon Education (Schools) Forum, held on 24 January 2024, that the transfer of 0.25% (£1.3 million) between blocks for 2024-25, to support the Safety Valve plans to manage the high needs funding sustainably and meet the needs of children and young people earlier had been approved by the Forum; and

· the Report of the Director of Finance and Public Value (DFP/24/15) on the Revenue Budget for 2024/25, Medium Term Financial Plan to 2027/28 and Capital Strategy 2024/25 to 2028/29. This included a statement on the robustness of the budget estimates, an assessment of the adequacy of reserves, the affordability of the Capital Strategy, the Treasury Management Strategy 2024/25, 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 Cabinet noted that the budget book contained details of the County Council’s revenue and capital budgets together with associated financial and operational information. The Leadership commentary highlighted this was a time of significant challenge for local government as a whole and preparing for the financial year 2024/25 had meant a continuation of plans to make savings by getting best value from all contracts, maximising income, reducing the number of employees, and selling Council owned property.