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 ‘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.

(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.

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 Strategy 2024/25 - 2028/29;

•       Risk Analysis of Volatile Budgets; and

•       Abbreviations.

 

The Chair of the Council MOVED that the Minutes of the Children’s Scrutiny, Health and Adult Care Scrutiny and Corporate Infrastructure and Regulatory Services Budget Scrutiny Committee meetings held on the18th, 24th and 25^th January 2024 relating to the annual estimates be approved.

 

The MOTION was 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 Council noted that the Corporate Infrastructure and Regulatory Services Scrutiny Committee had at that meeting on 25^th January 2024, considered and endorsed the proposed Treasury Management and Investment Strategy for 2024/25, prior to determination of the budget for that year (Report of the Director of Finance and Public Value (DFP/24/06)).

 

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 Council’s performance framework, demographic changes and consultation with local residents, businesses and other stakeholders.

 

The Autumn Statement of 22 November 2023 and the Provisional Local Government Finance Settlement that followed on 18 December 2023 indicated an increase in overall funding and confirmed the council tax referendum principles for 2024/25. The Core Spending Power, that included general grants and the Government assumption that full council tax increases would be applied, provided for an average 6.5% increase in funding in 2024/25.

 

The Secretary of State issued a further Written Statement on 24 January 2024 indicating that a further £600 million of funding would be provided for local government.

 

Directorate Budget Targets had been set by Cabinet on 10th January 2024, totalling £743.4 million, a net increase of £43.8 million or 6.3% compared to the 2023/24 adjusted budget. Details of the directorate budgets analysed by service was set out on pages 43 to 92. The targets set for each service area had been subject to different pressures and influences and the table on page 11 showed the 2024/25 Budget Targets by service area.

 

Key Table 1 on page 11 showed the estimated level of total spending on services and other items such as capital financing, interest income, costs met centrally and funded from specific reserves, and contingencies and provisions for additional costs not included in service budgets. Capital Financing Charges were dependent on the Authority's Capital Programme explained in pages 25 to 42. Factors that influenced the income gained from investing cash balances were set out on pages 131 to 153 that explained the Authority's Treasury Management Strategy.

 

Detailed in Key Table 5 on pages 15 and 16, were the most significant grant being the Dedicated Schools Grant which must be spent on schools and related expenditure. This Grant had increased by £38 million to £714 million.

 

District Councils had reported their final tax base for 2024/25 and estimated surpluses on collection up to March 2024. Key Table 2 set out the Council Tax Requirement, Tax Base, Council Tax by band and individual District Precepts. These assumed a 4.99% increase to Council Tax.

 

Councils were also able to raise the Adult Social Care Precept, which meant that upper tier Councils could raise Council Tax by up to 4.99% in total for 2024/25. A Band D Council Tax would, if the proposed budget was approved, increase by 4.99% to £1,715.67. The Council Tax requirement for the Council was £523,974,264.98.

 

The Authority's approach to the Medium-Term Financial Plan (MTFP) was detailed on pages 95 to 123 and Key table 4 was the financial representation of the current MTFP for 2024/25.

 

Pages 124 to 130 explained the authority's strategy for its reserves and balances, and it was recommended that general balances were maintained at or above £15.8 million. Key Table 3 summarised the authority's Reserves and Balances.

 

The Council acknowledged that a Budget 2024/25 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 9th February 2024 and this County Council meeting and was available at Budget 2024-2025 - Impact Assessment (devon.gov.uk) https://www.devon.gov.uk/impact/budget-2024-2025

 

The Chair 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 Twiss SECONDED that Cabinet Minute 475 (1-20) setting out the proposed revenue and capital budgets as detailed in Report (DFP/24/16) be approved.

 

The Leader paid tribute to the whole of the Leadership Team and Cabinet colleagues for working together in producing the budget adding there was a need to work and do things differently in order to achieve the savings required.

 

The Cabinet Member for Finance addressed the Council and thanked the work and recommendations of the Council’s Scrutiny Committees. He further commented that Local Government faced significant challenges, despite the Government increasing local councils’ spending power, as ‘demand outstripped supply’. It was a clear priority of both political and officer leadership that the Council must live within its means and having affordable expenditure plans that had a balance of service delivery, risk management and financial sustainability.

 

He said that increasing Council Tax bills was not a decision taken lightly, but the demand and the need to protect the most vulnerable meant there was no option but to propose an increase of 4.99%. 

 

He commented on the matters of concern to Members and outlined the additional monies for drainage, Home for Children and homelessness support as well as service redesign.

 

The Cabinet Member referred to the Council’s reserves position, the SEND debt and the approach to the Capital Programme as well as the Council’s debt position. 

 

He concluded that the budget had received the necessary statement of assurance from the Director of Finance and Public Value. 

 

Both the Leader of the Council and the Cabinet Member for Finance paid tribute to, and expressed gratitude to, the Director of Finance and Public Value, 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 2024/25. Group Leaders also echoed the words of the Leader in thanking the Director of Finance and Public Value for the exceptional work in bringing the budget together.

 

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

 

Councillor Leaver MOVED and Councillor Wrigley SECONDED that Cabinet Minute 475 (1-20) (Revenue Budget and Medium-Term Financial Strategy 2024/25 - 2027/28 and Capital Programme 2024/25 - 2028/29) be amended by the addition of the following and all necessary changes be made to the detailed budgets.

 

1.    Additional Funding of £2 million on improving road safety made up of £1.5million on mending potholes and improving road drainage, and an additional £500,000 on repainting white lines on the roads.

 

2.    Restore £60,000 to Libraries Unlimited to enable them to increase community library provision.

 

(Total Cost £2.06 million)

 

We will pay for these priorities by:

 

1.    Reducing the budget for travel by council staff and councillors by £10,000, taking advantage of remote working and virtual meetings.

 

2.    Reduce spend on hiring outside rooms / venues for DCC activity and DCC related activity by £100,000 by reviewing current arrangements and seeking more cost effective options.

 

3.    Reducing the corporate communications, media and press element of the Citizens Engagement budget by an additional £300,000 by improved and more efficient working.

 

4.    Spending £50,000 less on subscriptions by reviewing value for money of all subscriptions with a clear focus on benefits to Devon’s taxpayers.

 

5.    Reviewing the council’s essential car user scheme and making savings of £220,000.

 

6.    Reducing expenditure on Agency and Temporary staff by £700,000 recognising the challenges faced by Children’s Social Care and their strategy to increasingly move away from using agency staff.

 

7.    Reviewing the council’s mobile phone policies and making savings of £20,000.

 

8.    A saving of £600,000 to be achieved by improved efficiency across all Corporate Services for example Business Services and Support, Customer Relations, Finance Services, Facilities Management and IT Services, through an increased use of web based services and other technologies such as Artificial Intelligence.

 

9.    To raise £60,000 from the Locality Grants budget, by reducing the increase proposed by the current administration, resulting in councillors having an allocation of £7,000 each instead of £8,000 in 2024/25.  This money to be directed to improve community library provision.

Councillor Biederman then MOVED and Councillor Hodgson SECONDED that Cabinet Minute 475 (1-20) (Revenue Budget and Medium-Term Financial Strategy 2024/25 - 2027/28 and Capital Programme 2024/25 - 2028/29) be amended by the addition of the following and all necessary changes be made to the detailed budgets.

 

The Independent & Green Group Welcomes and supports:

 

1. The overall 6.3% increase in the budget, specifically the 10.4% in Children and Young People’s Futures and 6% in Integrated Adult Social Care, while recognising this does not meet the Inflationary, National Living Wage & Demand pressures facing us and does not help with the years of cuts by Government to our core funding.

 

We Support

 

(a) The £2.3 million increase in the internal and external fostering budget, and the increased number of in-house foster carers by 30, and £3.2 million investment in the development of three in [1] house children’s homes reducing the reliance on out of county placements and independent fostering agencies, something we have pushed for, for many years.

 

(b) The increase of 525 places in Devon’s Special School estate.

 

(c) The increase in Member Locality Budgets to £8,000 per Member, as local Members can help support their communities.

 

(d) Welcome the extra £1.152m in cyclic Maintenance of the Highway. We have pushed for this in many years.

 

(e) We reluctantly support the 4.99% Council Tax increase, recognising that failing to do so, will put at further risk, the services that our communities rely on, particularly our most vulnerable residents.

 

We will support the Cabinets Budget, if the following amendments are accepted, as we believe if we are again asking the public to pay more, that they see an improvement or at least services maintained.

 

A – The £175,000 reduction proposed to Devon library Services are reversed, recognising the positive impact Libraries have on our communities.

 

B – An increase of £250,000 to the Public Rights of Way & Cycle Network budget from £750,000 to £1,000,000.

 

C – Increase PROW Wardens by 4, to cover the 3000 miles of footpaths, split 2 extra for North & South Team. Total Cost including on costs £180,000

 

D – An increase of £100,000 to £250,000 LTP Budget for 20mph Zones supported by Parish Councils.

 

E – The Administration commits to look at the management Structures across the council, to seek to reduce the number of Managers we currently have.

 

F – Commit to write to each Devon Conservative MP, outlining the severe underfunding Devon County Council gets for School Funding & High Needs Block funding, asking them why they voted for a settlement that continues to disadvantage Devon’s Children. We are 114 out of 151 in the funding Table.

 

This has led to the severe situation the Council finds itself in, being the Authority with the biggest SEND accumulated overspend on its books forecast to be £163M by the end of the year.

 

Devon’s Children are underfunded by £213 each per Year.

We have 94,302 Children, meaning Devon is shortchanged by £20,086,326 against the average.

 

High Needs Block Funding we are underfunded against the national average by £96.06 per head.

 

We have 9,401 children in this bracket, meaning we are down by £868,478.46 a year against the average.

 

Devon is underfunded for Schools & High Needs block by almost £21 million a year, meaning our children cannot get the support others get. This of course leads to children falling behind and needing expensive interventions later on. This has gone on for years, so we say Devon is not overspent, it is underfunded. We are now in this budget, asked to put £5m from capital projects to the safety valve for our negotiations with government to pay back the overspend, it will of course involve committing to not supporting so many children in the same way going forward. Which capital budgets will this come from, most probably our crumbling road network.

 

G – Public Health, we are worse off than School Funding, being 139 out of 150 that receive Public Health Funding.  We receive £37 per head of population, whereas the national average is £70-£80. Its hard to get the exact figure but let’s assume we have 800,000 residents and if its £70 that’s a staggering £26.4 million we don’t get against the average! Just imagine what we could do for our communities, if we just got the average. So, we write to the Government & all Devon MP’s asking why they see it fit that Devon is so badly funded.

 

We believe F & G proves that we are not being levelled up but levelled down by this Government and its an insult to the people of Devon, when we hear Devon MPs and Government ministers talking about how they are levelling up.  The fact is, they are using money taken from us originally. £150m in Core Grant a year gone since 2010, meaning we now spend officer time and money on bidding for pots of money.

 

Our Budget Amendments A-D have been checked by the Finance Team and confirmed as Legal & Appropriate for consideration by Council.

 

They total £705,000 which will be paid for by:

 

A – The Citizen Engagement Budget, formerly known as Communications, is reduced by a further £500,000 from £1,061,000 to £561,000 as we do not believe we need 28 staff effectively acting as spin doctors for the administration.  We have 60 councillors that regularly engage with our communities.

 

B - £205,000 is taken out of the Executive, Legal & Democratic Services, reducing it to £8,186,000 from £8,391,000.  This could be done by reducing the number of staff from 111 – 106.

 

A & B are moved into the relevant budget lines.

 

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 for, against or in abstention to the aforementioned Amendment as follows):

 

For the amendment; Councillors Adams, Asvachin, Biederman, Bradford, Brazil, Connett, Cox, Dewhirst, Hannaford, Hodgson, Leaver, Letch, Whitton and Wrigley) (Total: 14)

 

Against the amendment; Councillors Berry, Brook, Bullivant, Chesterton, Chubb, Crabb, Croad, Davis, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hughes, Leadbetter, Maskell, McInnes, Morrish, Khan, Peart, Randall Johnson, Samuel, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Wilton Love and Yabsley (Total: 33)

 

Abstained from Voting; Councillors Henderson and McGeough (Total: 2)

 

The AMENDMENT in the name of Councillor Leaver 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 for, against or in abstention to the aforementioned Amendment as follows):

 

For the amendment; Councillors Adams, Asvachin, Biederman, Bradford, Brazil, Connett, Cox, Dewhirst, Hannaford, Hodgson, Leaver, Letch, Whitton and Wrigley) (Total: 14)

 

Against the amendment; Councillors Berry, Brook, Bullivant, Chesterton, Chubb, Crabb, Croad, Davis, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hughes, Leadbetter, Maskell, McGeough, McInnes, Morrish, Khan, Peart, Randall Johnson, Samuel, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Wilton Love and Yabsley (Total: 34)

 

Abstained from Voting (Total: 0)

 

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 for, against or in abstention to the aforementioned Motion as follows):

 

For the Motion; Councillors Berry, Brook, Bullivant, Chesterton, Chubb, Crabb, Croad, Davis, Gilbert, Gribble, Hall, Hart, Hawkins, Hellyer, Hughes, Leadbetter, Maskell, McGeough, McInnes, Morrish, Khan, Peart, Randall Johnson, Samuel, Sanders, Saywell, Scott, Sellis, Slade, Squires, Trail, Twiss, Wilton Love and Yabsley (Total: 34)

 

Against the Motion; Councillors Adams, Asvachin, Biederman, Bradford, Brazil, Connett, Cox, Dewhirst, Hannaford, Hodgson, Leaver, Letch, Whitton and Wrigley) (Total: 14)

 

Abstained from Voting: (0)