Agenda item

Report of the County Treasurer (CT/17/1) on the impact of the Provisional Local Government Settlement for forthcoming year on the preparation of the 2017/18 budget and re-affirmation of service expenditure targets, attached.

[NB: As in previous years and as part of the detailed budget preparation exercise that follows the setting of target budgets, the Cabinet and Council will also have regard to appropriate assessments of the impact of the budget on services and be mindful of any legislative and equality considerations; such assessments will  be made available to relevant Scrutiny Committees to be taken into account as part of their deliberations and in order that all Members shall have regard to the requirements placed upon the Council to exercise its Public Sector Equality Duty under s149 of the Equality Act 2010, before making any decisions.  The 2017/18 Budget Impact Assessment will be available, alongside any specific impact assessments undertaken as part of the budget’s preparation, at:  

https://new.devon.gov.uk/impact/published/budget-setting-201718/ ]

(Councillors Connett, Greenslade, Julian, Owen and Westlake attended in accordance with Standing Order 25(2) and spoke to this item).

The Cabinet considered the Report of the County Treasurer (CT/17/1) on the Provisional Local Government Settlement for 2017/18 and the impact thereof on the preparation of the budget for that year. 

The Secretary of State for Communities and Local Government had announced, on 15 December 2016, the Council’s Provisional Local Government Settlement for 2017/18 of £128,300,000, outlining also a number of changes to the previously announced core spending power figures for the period 2016/17 to 2019/20, as set out more fully in the County Treasurer’s Report.

The Cabinet noted, in particular, that while the Social Care Precept on Council Tax in 2016/17 had originally been set at 2% per annum for the period 2016/17 to 2019/20 inclusive, the terms of that additional precept had been altered to allow it to be increased by up to 3% per annum in 2017/18 and 2018/19 or 2% per annum over the remaining 3 years of the  'quadrennial' core spending period (i.e. a total increase of 6%).   Further, changes to the New Homes Bonus allocations would see the County Council’s allocation reduced by £709,000; acknowledging that such reductions nationally had been utilised by Government to create a new Adult Social Care Support Grant for 2017/18 only, the County Council’s share of which was £3,592,000. Whilst changes in the Business Rates Retention system would result in an additional £74,000 in 2017/18 this would be offset by a reduction in the local element of Business Rates.  The 2017/18 Public Health grant had been confirmed at £28,238,000 in line with expectations while notification of the Dedicated Schools Grant and some other smaller grants had yet to be received.

The County Treasurer confirmed that , as in recent years, the level of Council Tax that would trigger a local referendum would be 2% (excluding any Social Care Precept).

Notwithstanding the above and acknowledging concerns expressed by Members attending this meeting  under Standing Order 25 about the sufficiency of the Council’s budget, the lack of progress demonstrated  by Government  in rebalancing funding as between urban and rural authorities and the need for fairer funding for schools and NHS and social care services, Cabinet Members noted that the service spending targets previously set by Cabinet on 14 December 2016 (based on earlier forecasts) were no worse than anticipated and that in the County Treasurer’s view did not require any amendment. The County Treasurer therefore recommended that the provisional targets be confirmed and budgets set within those targets and scrutinised accordingly.

The Leader of the Council confirmed  that he would be meeting with Devon MPs in the near future to continue to press the Council’s case for increased funding including for those issues raised at this meeting.

The matter having been debated and the options and/or alternatives and other relevant factors set out in the County Treasurer’s Report and/or referred to above having been considered:

It was MOVED by Councillor Clatworthy, SECONDED by Councillor Hart and

RESOLVED that the Provisional Settlement of £128,300,000 be noted and the revenue spending targets for 2017/18 approved on 14 December 2016 (Minute *115) be confirmed.