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 ‘2019/20 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/budget-2019-2020

 

(b) To receive and approve the Report of the County Treasurer (CT/19/6) together with the Minutes of the Cabinet held on 15^th February 2019 relating to the budget and the Minutes of the Corporate Infrastructure and Regulatory Services Committee, containing all Scrutiny Budget Resolutions from 29^th January 2019, attached.

 

The Report of the County Treasurer and Cabinet Minutes will follow and the minutes can be viewed here shortly.

[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.]. 

 

The Council considered the Minutes of the Cabinet meeting (Minute 300 of 15^th February 2019), together with the Report of the County Treasurer (CT/19/6) on the Revenue Budget for 2019/20, Medium Term Financial Strategy to 2022/23 and Capital Strategy 2019/20 to 2023/24, including 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.  This year, for the first time, there was a requirement to prepare a Capital Strategy in line with the CIPFA Prudential Code for Capital Finance in Local Authorities 2017 and this was also included.

 

The book contained;

 

·         Revenue Budget Overview;

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

·         Capital Strategy and Programme Overview 2019/20 - 2023/24;

·         Service Budgets;

·         Medium Term Financial Strategy 2019/20 - 2022/23;

·         County Fund Balance and Earmarked Reserves 2019/20;

·         Treasury Management Strategy 2019/20 - 2021/22 and Prudential Indicators 2019/20 - 2023/24;

·         Risk Analysis of Volatile Budgets;

·         Fees & Charges; and

·         Abbreviations.

 

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 21^st, 24^th and 29^th January 2019 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 its meeting on held 29th January 2019 considered the proposed Treasury Management Strategy for 2019/20, and Capital Strategy, prior to determination of the budget for that year.

 

The County Treasurer’s Report (CT/19/6) contained details of the County Council’s revenue and capital budgets together with associated financial and operational information.  The Council’s financial plans were drawn up with reference to the Council’s major policies and objectives, performance frameworks, demographic changes, consultation with local residents, businesses and other stakeholders.

 

The Cabinet Member for Resources Management commented that 2019/20 was the final year of the Government's four-year Local Government financial settlement and although core funding had been reduced by £13.5 millions (11.7%), to £101.5 millions, this was in line with expectations. The reduction had been offset to some extent by additional grants for Winter Pressures of £3.6 millions and Social Care Support of £6.1 millions. However, the overall picture was a significant reduction to funding at a time when there were huge pressures on Social Care services.

 

 

He also gave details on the Service budgets which totalled £493.850 millions, with Children’s Services base budget being £135.153 millions (an increase of 9.4% from 2018/19), Adult Care and Health base budget was £232.599 millions (an increase of 2% from 2018/19), Communities, Public Health, Environment and Prosperity Services base budget was £38.577 millions (an increase of 0.7% from 2018/19). Corporate Services base budget was £32.974 millions (a decrease of 6.6% from 2018/19) and included inflation, pressures and NLW of £1.476 millions and required savings and income initiatives of £3.808 millions. Highways, Infrastructure Development and Waste Services base budget was £54.547 millions (an increase of 0.7% from 2018/19).

 

The settlement had set the Council Tax increase that would trigger the need for a referendum, excluding the Social Care Precept, at 3% for 2019/20; the same level as 2018/19. The Adult Social Care Precept regulations also remained unchanged. In 2016/17, the Social Care Precept was capped at 2% per annum for the period 2016/17 to 2019/20. Government then changed the regulations in 2017/18 and allowed Authorities to increase the precept to a maximum of 3% per annum over the period 2017/18 to 2019/20 as long as the total increase over the three years did not exceed 6%.

 

The Council increased the Adult Social Care Precept by 3% in 2017/18 and 2% in 2018/19 leaving 1% available for 2019/20.

 

A Band D Council Tax would, if the proposed budget was approved, increase by 3.99% to £1,384.29. The Council Tax requirement for the Council was £401,663,454.61.

 

The Council acknowledged that a Budget 2019/20 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 15th February 2019 and this County Council meeting. A revised version had been was circulated to all Members on 13th February 2019. https://new.devon.gov.uk/impact/budget-2019-2020

 

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 she would exercise her 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 Barker SECONDED that Cabinet Minute 300 (a) – (v) setting out the proposed revenue and capital budgets as detailed in Report (CT/19/6) be approved.

 

In commending the proposed budget to the Council, the Leader commented this was the tenth year of reduced spending for Devon, with savings having been required every year. 2019/2020 was no exception with £13millions needing to be saved. He highlighted the aim was to protect statutory services and commended the budget to the Council as one that supported the old, young and the vulnerable.

 

Both the Leader of the Council and Cabinet Member for Resources Management paid tribute to and expressed 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 2019/20. They also thanked other Members of the Council for their input into the Scrutiny process.

 

Members then formally moved, each duly seconded, amendments as shown below which were subsequently the subject of one debate as agreed above.

 

Councillor Hannaford MOVED and Councillor Whitton SECONDED that Cabinet Minute 300 (Revenue Budget and Medium-Term Financial Strategy to 2019/20 – 2022/23 and Capital Programme 2019/20 – 2023/24) be amended by the addition of the following and all necessary changes be made to the detailed budgets referred to at 300(a) – (v):

 

a.     support the retention of the £10,000 per elected member Locality Funding to ensure that local members can fulfil their local leadership roles and agree that that any remaining or unspent Investing In Devon funding, be allocated out equally to all members for local capital projects.

b.     support raising the Social Care Precept by 1% to help relieve service pressures, and lobby parliament for a long term, cross party, progressive solution to the care crisis as a matter of urgency.

c.     support raising the Council Tax by 2.99 % to help front line services for local communities, however registers deep concerns about the heavy reliance of using the Council Tax system to raise funds because of its very regressive nature.

d.     registers serious concerns over the potential loss of “Troubled Families” funding in 2020, and the loss of vital and crucial work around early help, and supports the proactive work being done to lobby and secure future funding streams.

e.     allocate £2,000,000 per annum for a rolling programme to deliver School Suitability Funding, in addition to the Schools Expansion Programme, including heating, energy efficiency, and invest to save measures.

f.      allocate £125,000 to the Atkinson Unit to secure new staffing arrangements on an invest to save basis through capacity and income generation.

g.     allocate £150,000 for an additional three SEND grade three case workers to improve performance, operational effectiveness, and timeliness.

h.     allocate £200,000 to respond to the OFSTED SEND inspection report, especially on condition and suitability issues.

i.      allocate £85,000 to develop, establish and market an SEND Interactive Care Portal.

j.      allocate £200,000 for Children Centres transition work with local communities and families to promote new service delivery models, in partnership with Action For Children.

k.     allocate an additional £250,000 for the Building Accessible Adaptations to adequately meet service demands.

l.      allocate £ 50,000 to Domestic Abuse and Sexual Violence prevention work, with a specific focus on supporting children and young people.

m.   allocate £20,000 for Period Dignity Pilots in some selected local schools to provide free sanitary products to assess take up, and to improve school attendance, performance, and welfare.

n.     allocate £450,000 to improve the Transition Journey from Children’s Services to Adult Services.

o.     allocate 1,000,000 for Economic Development Work, to counter the effects of BREXIT, the recent 1,300 regional job losses, and generally promote innovation, enterprise, sustainable transport, resilience and diversification.

p.     allocate £800.000 to facilitate construction of Okehampton Parkway Station and infrastructure improvements for the reinstatement of the Exeter to Okehampton passenger service. This to be subject to a guarantee from Great Western Railways that a service will start in 2020.

q.     Allocate £900.000 to sustainable transport projects within Exeter and its hinterland with particular emphasis on improving bus information and extension to bus/rail park and ride sites.

r.      Allocate £300,000 for public health.

 

Items (e) to (r) total £6,530,000 millions and it is suggested that in 2019/20 this is funded from the Council’s Budget Management Reserve.

 

Councillor Connett MOVED and Councillor Way SECONDED that Cabinet Minute 300 (Revenue Budget and Medium-Term Financial Strategy to 2019/20 – 2022/23 and Capital Programme 2019/20 – 2023/24) be amended by the addition of the following and all necessary changes be made to the detailed budgets referred to at 300(a) – (v):

 

“A decade after the financial crash, people need to know that the austerity it led to is over and that their hard work has paid off…” Prime Minister, Theresa May

 

…But still the Conservatives short-change the people of Devon:

 

n  £134 million cut in the Government’s Revenue Support Grant since 2013/14

n  Funding for our schools has got worse. Devon now gets £294 a year LESS per child compared to £265 BEFORE Devon’s Conservative MPs lobbied for more money!

n  We note with concern that Devon has lost 525 Teachers and Teaching Assistants in the last year alone

n  The boiling-point pressure on the budget for Children’s Services and for children with special educational needs.

n  Cuts to Public Health and the pressure on Children’s mental health services.

Devon Liberal Democrats propose investment in services by searching out waste, better efficiency, and focussing money where it will really help our communities, by:

 

1. Investing £400,000 to improve Mental Health Services for Young People.

2. Putting an additional £1 million - for education and services for children with special educational needs.

3. £500,000 for much-needed rural bus services.

4. Creating a hardship fund of £60,000 - to support young people in Post-16 education with home to college travel.

5. Improving highway drainage with £500,000 additional investment

 

We will fund this investment of £2,460,000 million by:

 

1. Cutting waste currently being allowed by County Hall and efficiency savings:

    -  Save £500,000 - by cutting the budget for expensive consultants and stand-in managers

    -  Cut spending on media, public relations and advertising by £500,000 -

    -  Reduce spending on room hire to save £ 140,000 -

    -  Save £500,000 - from car allowances and mileage payments

 

2. Transferring £820,000 a year from the Economic Development budget into these higher priorities.

Costs for the transformation of Economic Development and other services will be charged to the council's Service Transformation Reserve, currently £10 million.

 

Other financial steps:

 

Devon County Council to lobby government to end the switch from Council Tax to Business Rates loophole used by some second home owners and to allow local councils the power to charge up to 200% Council Tax on second/holiday homes.

 

Such measures would, it is believed, raise in the region of £10 million for Devon County Council from South Hams alone. Across the county, it is suggested the income could be in excess of £20 million.

 

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 Biederman, Connett, Dewhirst, G Hook, J Hook, Shaw, Way and Wright: (Total: 8)

 

Against the amendment; Councillors Ball, Barker, Bloxham, Brook, Channon, Chubb, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Prowse, Radford, Randall Johnson, Russell, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 40)

 

Abstained from Voting; Councillors Ackland, Asvachin, Atkinson, Aves, Hannaford, Hodgson and Whitton (7)

 

The amendment in the name of Councillor Hannaford 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, Connett, Dewhirst, Hannaford, Hodgson, G Hook, J Hook, Shaw, Way, Whitton and Wright: (Total: 15)

 

Against the amendment; Councillors Ball, Barker, Bloxham, Brook, Channon, Chubb, 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, Scott, Sellis, Slade, Squires, Trail, Twiss and Yabsley: (Total: 39)

 

Abstained from Voting; Councillor Prowse (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 Ackland, Asvachin, Atkinson, Aves, Ball, Barker, Bloxham, Brook, Channon, Chubb, Clatworthy, Colthorpe, Crabb, Croad, Davis, Eastman, Edgell, Gilbert, Gribble, Hall, Hannaford, Hart, Hawkins, Hellyer, Hosking, Hughes, Inch, Leadbetter, Mathews, McInnes, Parsons, Peart, Prowse, Radford, Randall Johnson, Russell, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Whitton and Yabsley: (Total: 46)

 

Against the Motion; Councillors Biederman, Connett, Dewhirst, Hodgson, G Hook, J Hook, Shaw, Way and Wright (Total: 9)