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 ‘2021/22 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-2021-2022/.

 

To receive and approve the Report of the County Treasurer (CT/21/17) together with the Minutes of the Cabinet held on 12th February 2021 relating to the budget and the Scrutiny Budget Resolutions from 28th January 2021, attached.

 

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.

 

The Report of the County Treasurer will follow.

 

The Cabinet Minutes will be available to view at https://democracy.devon.gov.uk/ieListDocuments.aspx?CId=133&MId=3838&Ver=4 shortly.

 

The MOTION in the name of Councillor Hart was 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 as a parent or a guardian of a child in care or in receipt of statutory sick pay or a pension.

 

The Council considered the Minutes of the Cabinet meeting (Minute 625 (a - t) of 12th February 2021), together with the Report of the County Treasurer on the Revenue Budget and Medium Term Financial Strategy 2021/22 - 2024/25 and Capital Programme 2021/22 - 2025/26 (CT/21/17), 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 the 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. 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 Budget Book contained:

 

·         Revenue Budget Overview;

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

·         Capital Strategy and Programme Overview 2021/22 - 2025/26;

·         Service Budgets;

·         Fees & Charges;

·         Medium Term Financial Strategy 2021/22 - 2024/25;

·         County Fund Balance and Earmarked Reserves 2021/22;

·         Treasury Management Strategy 2021/22 - 2024/25 and Prudential Indicators 2021/22 - 2025/26;

·         Capital Strategy; and

·         Risk Analysis of Volatile Budgets; and Abbreviations.

 

The targets set for each service area had been subject to different pressures and influences.

 

The Chair of the Council MOVED that the Minutes of the Children’s Scrutiny Committee, Health and Adult Care Scrutiny and Corporate Infrastructure and Regulatory Services Budget Scrutiny Committee meetings held on 25^th, 26^th and 28^th January 2021 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 28^th January 2021, considered and endorsed the proposed Treasury Management Strategy for 2021/22, 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 financial settlement (Settlement Funding Assessment) for 2021/22 had been announced and was £103.2 millions which was the same as 2020/21. The settlement was for one year only and was based on the Spending Round 2020 (SR20). The main points of the SR20 having been set out in the Cabinet Minutes.

 

Revenue Expenditure Detailed budgets had been produced within the Targets set by Cabinet in January 2021 and were shown on pages 39 to 89. The risks associated with the delivery of the 2021/22 budget and the mitigating action needed was detailed on pages 150 to 166.

 

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. The Authority's Capital Programme was explained on pages 19 to 39. Factors that influenced the income gained from balances were set out on pages 122 to 138 which also explained the Authority's Treasury Management Strategy.

 

Key Table 2 set out the Council Tax Requirement, Tax Base, Council Tax by band and individual District Precepts. Pages 114 to 121 explained the Authority's strategy for its reserves and balances. 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 91 to 113.

 

The Authority had not only received Core Funding but also specific grants that related to particular activities and these were detailed in Key Table 5 on page 13 and 14, the most significant specific grant was the Dedicated Schools Grant. For 2021/22 the Dedicated Schools Grant had increased to £589.1 millions from £539.9 millions in 2020/21.

 

The settlement had set the Council Tax increase that would trigger the need for a referendum at 2% for 2021/22, with social care authorities allowed a 3% social care precept. A Band D Council Tax would, if the proposed budget was approved, increase by 4.99% to £1511.28. The Council Tax requirement for the Council was £442,820,830.24.

 

The Council acknowledged that a Budget 2021/22 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 14th February 2020 and this County Council meeting. The final revised version had been circulated to all Members on 9^th February 2021.

 

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 McInnes SECONDED that Cabinet Minute 625(a to t) setting out the proposed revenue and capital budgets as detailed in Report (CT/21/17) be approved.

 

In commending the proposed budget to the Council, the Leader commented this was a good budget for the people of Devon. The Leader of the Council paid tribute to and expressed gratitude to the County Treasurer, 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 2021/22.  Group Leaders also echoed the words of the Leader in thanking the County Treasurer for their exceptional work in bringing the budget together. 

 

The Leader thanked the Scrutiny Committee’s for their hard work in scrutinising the budget proposals and added that an additional sum of money (£1.3 millions) had been put into the Budget. This included £600,000 for highways, specifically potholes and drainage works, £600,000 for District Council’s to support emergency funds and crisis funding and a £100,000 fund for Town and Parish Councils to bid from for cyclical maintenance works (match funded).  The Leader also said the budget had been based on a Council Tax increase of 4.99% and the levels of reserves were adequate, with no additional monies being added to them.

 

Additional thanks were given to those who had participated in the three budget consultation meetings as well as the parish councils attending the Leader’s virtual budget roadshows.

 

The Leader reported that the Budget for 2021/22 included significant investment in core services to support the most vulnerable people in Devon. It was highlighted however that the Council was in unprecedented times and the Authority faced significant risk of increased demand for services, increased costs and reducing funding. On a national level, the COVID pandemic had had a devasting impact on public health, social care and the economy and the national response had cost billions of pounds. However, protecting the vulnerable was the key aim of the budget.

 

Members then formally moved, each duly seconded, the 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 (625) (a-t) (Revenue Budget and Medium Term Financial Strategy 2021/22 - 2024/25 and Capital Programme 2021/22 - 2025/26) be amended by the addition of the following and all necessary changes be made to the detailed budgets.

 

PUTTING DEVON BACK ON THE ROAD

 

Let’s get Devon back to work.

 

The Liberal Democrats budget amendment is a positive vision for Devon, putting it back on the road and helping the County back to work.

 

We will invest more in fixing our roads, especially potholes and drainage while also supporting cycling and walking.

 

We believe a new ‘Green Devon’ initiative supporting the County’s work to tackle climate change and protect the environment is urgently needed.

 

We will back business across Devon through a new economic support fund to promote and celebrate ‘Made in Devon’ – and launch a campaign encouraging residents and businesses to ‘Buy in Devon’ whenever possible.

 

A new investment of £750,000 in counselling and mental health support to help children and young people affected by the Lockdowns.

 

 Liberal Democrats budget amendment:

 

1.    Welcomes the Conservatives’ U-turn on their disastrous cut of £307,000 in Devon’s Highways budget. 

 

2.    Liberal Democrats will invest an additional £3.4 million during 2021-22 on fixing Devon’s roads to:

 

·         Fill the potholes and fix them better

·         Tackle legacy problems from underspending on highway drainage

·         Plan to bring back routine maintenance, as once carried out by Devon’s length-man service, to keep blocked road drains clear

·         Invest in cycling and walking

·         Repaint missing faded white lines & junction markings

 

3.     Invest £500,000 supporting local communities who want 20mph zones and speed limits, including around their schools.

 

4.    Invest £500,000 in a new ‘Green Devon’ scheme supporting environmental projects such as bee corridors, wild flower meadows and verges, tree planting and helping local communities deliver their own environmental improvements.

 

5.    Backing Devon Business to save and create jobs. Creating a new £1million economic support fund promoting ‘Made in Devon’ and ‘Bought in Devon’. Devon can lead the way.

 

6.    Mental health support for school children coping with the lasting impact of lock down. An additional £750,000 for counselling. 

  

(Total invested is £6.15 million) 

 

We will pay for these priorities through a one-off draw down from the £64.4 million Budget Management Reserve to help Devon back on the road and back to work.

         

Other financial steps to help Devon work again

 

Urgently lobby Government to:

 

1.  End the tax dodge loop-hole of second home owners switching from Council Tax to Business Rates and then claiming ‘small business’ exemption, so they pay nothing at all.

 

2.    Increase Council Tax on second homes by 100%

 

Ending the ‘business rate tax-dodge’ and increasing Council Tax on second homes could generate in excess of £20 million to support vital and much-needed services across Devon.

 

Councillor Biederman MOVED and Councillor Shaw SECONDED that Cabinet Minute (625) (a-t) (Revenue Budget and Medium Term Financial Strategy 2021/22 - 2024/25 and Capital Programme 2021/22 - 2025/26) be amended by the addition of the following and all necessary changes be made to the detailed budgets.

 

We welcome and support the increase in Budgets for the Financial Year 2021/22 in all service areas, after the increased funding from Central Government this year.

 

We ask that Council supports us in giving residents a Council Tax Holiday this year, by not implementing the 1.99% rise proposed.

 

We invest £1m in Rural Cycle routes, signalling a real intent to meet our Carbon reduction plan.

 

We ask that £1m is also invested in a lengths person service, so that every community has someone checking and clearing more regularly drains & gullies.  We see this as a spend to save initiative, but for this year, will be paid for from reserves so as not to impact on other front-line services.

 

We Invest £200,000 in new books for the Library Service.

 

Our medium-term strategy had budgeted for a public sector pay rise, which has been frozen, and our reserve levels appear sufficient at £114.5m.  We would pay for the above by taking £10.54m from reserves this year but look to secure savings in subsequent years on Agency Workers and Commissioning services.

             

We write to all Devon MP’s & Treasury Department of Government, outlining the dire level of funding in all Public Sector Areas that Devon receives against the National Average, calling on them to level us up and ask that our MP’s representing Devon, vote against any measure that does not see Devon being treated fairly & equitably. 

 

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 Amendment as follows):

 

For the amendment; Councillors Biederman, Brazil, Connett, Dewhirst, Hodgson, G Hook, J Hook, Inch, Shaw, Way and Wright: (Total: 11)

 

Against the amendment; Councillors Ball, Berry, Bloxham, Brook, Channon, Chubb, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Edgell, Gilbert, Gribble, Hart, Hawkins, Hellyer, Hosking, Hughes, Leadbetter, Mathews, McInnes, Parsons, Peart, Prowse, Radford, Randall Johnson, Russell, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Yabsley: (Total: 38)

 

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

 

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 Amendment as follows):

 

For the amendment; Councillors Biederman, Brazil, Connett, Dewhirst, Greenslade, Hodgson, G Hook, J Hook, Inch, Shaw, Way and Wright: (Total: 12)

 

Against the amendment; Councillors Ball, Berry, Bloxham, Brook, Channon, Chubb, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Edgell, Gilbert, Gribble, Hart, Hawkins, Hellyer, Hosking, Hughes, Leadbetter, Mathews, McInnes, Parsons, Peart, Prowse, Radford, Randall Johnson, Russell, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Yabsley: (Total: 38)

 

Abstained from Voting; Councillors Ackland, Asvachin, Atkinson, Aves, Hannaford, Whitton: (Total: 6)

 

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 as follows):

 

For the Motion; Councillors Ackland, Asvachin, Aves, Ball, Berry, Bloxham, Brook, Channon, Chubb, Chugg, Clatworthy, Colthorpe, Crabb, Croad, Davis, Edgell, Gilbert, Gribble, Hannaford, Hart, Hawkins, Hellyer, Hosking, Hughes, Leadbetter, Mathews, McInnes, Parsons, Peart, Prowse, Radford, Randall Johnson, Russell, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Whitton and Yabsley: (Total: 43)

 

Against the Motion; Councillors Biederman, Brazil, Connett, Dewhirst, Hodgson, G Hook, J Hook, Shaw, Way and Wright: (Total: 10)

 

Abstained from Voting; Councillors Atkinson, Greenslade and Inch: (Total: 3)