Agenda item

(To receive a report by Michelle Grady, Head of Finance – Communities, which describes the budget proposals for the next financial year 2019/20 and provides the Committee with the opportunity to scrutinise and make comment on them prior to the Executive meeting on 5 February 2019 when the final budget proposals for 2019/20 will be made)   

Consideration was given to a report which described the budget proposals for the next financial year 2019/20, based on the four year funding deal announced by the Government as part of the 2016/17 Local Government Finance Settlement.  The report specifically looked at the budget implications for the Environment & Economy activities within the following commissioning strategies:

·       Protecting and Sustaining the Environment

·       Sustaining and Growing Business and the Economy and

·       Sustaining and Developing Prosperity Through Infrastructure (Economic Infrastructure and Regeneration)

Members were advised that the budget proposals were now open to consultation and the Committee have the opportunity to scrutinise them and make comment prior to the Executive meeting on 5 February 2019 when it would make its final budget proposals for 2019/20.

It was noted that the Council had set a budget for 2019/20 the previous year and so this just to provide an update.  It was noted that there was a lot of uncertainty nationally regarding finance at this time.

Members were advised that this year, the Secretary of State had announced and increase to the threshold above which a local authority would be required to hold a referendum for council tax increases.  The threshold for general council tax would be 3.00% for 2019/20.  Together with a 2% increase for Adult Social Care allowed for a final year in 2019/20, this meant that Lincolnshire County Council was able to increase council tax in 2019/20 by up to 5%.  The Executive was currently consulting on a proposed council tax increase of 4.95%.

Members were guided through the report and the following was highlighted:

·       The Lead Local Flood Authority grant had been confirmed at £0.125m for 2019/20

·       As the leases expired on the JCB's used in the waste transfer stations, it was proposed to move to a capital purchase to replace them.  This had generated savings in 2018/19 and would generate further savings in 2019/20

·       The cost pressures related wholly to waste disposal costs in the increase in volumes of waste being collected for disposal and the inflationary increases of the waste management contract.

·       Some of the capital programme had been re-phased, but there was still £11m allocated for the Boston Barrier project.

Members were provided with the opportunity to ask questions to the officers present in relation to the information contained within the report and some of the points raised during discussion included the following:

·       It was queried why there was a drop in the capital programme budget for Protecting and Sustaining the Environment from £3.6m to £1.1m.  Members were advised that this would be due to one off schemes being completed, such as the Horncastle and Louth flood schemes.  For 2019/20 it was noted that the budget was predominantly for match funding for Environment Agency schemes.  There was just under £19m allocated to the future schemes programme, and the main block of that would be for the Boston Barrier.

·       In relation to the budget for the development of business units, it was queried whether locations had been identified.  It was noted that some research had been carried out on where there was demand for small business units.  There was information by district of where demand was not being met by supply.  In terms of office and business units, there were particular pressures in South Kesteven and the north of North Kesteven.  For small manufacturing units there were pressures in East Lindsey and West Lindsey.  It was commented that the council saw no value in spending money where the private sector would be spending money and instead would look for those areas where the market was not yet as mature.

·       Some of the units were designed for people running their own business who were making the first move from home to a business unit, which had easy in and easy out contracts.  A quick turnover of these units was encouraged to ensure that there would be space for new businesses, and that businesses could quickly move into bigger premises once they were established.  The aim was to keep these units at around 85% occupancy.

·       There was unanimous support for the proposed council tax increase of 4.95%

·       It was queried whether there could be some feedback on the high street, for example as there was plenty of sufficiency of fast food outlets.  It was suggested there was a need for some imaginative thinking about turning high streets back into residential areas.  However, this needed to be done as a county and would be really helpful if all the districts could be brought together.

·       It was highlighted that the high street had to compete against online stores.

·       It was noted that the current mechanism was to look at business premises requirements in terms of additional space, but it was queried whether there was a need to think about regeneration of business premises.  There was a need to look at ways of keeping towns and retail areas sustained and used, so people were going into towns as a visitor experience.  It was also important to look at improving the vibrancy and wellbeing of towns.

·       Findings from the High Street Working Group would be brought to this Committee at its meeting on 9 April 2019.

·       It was believed that the budget proposed was sufficient, however, it was highlighted that there were three main risk areas: - the high street, skills, and the gap between leaving the EU and the shared prosperity fund which could mean that there could a delay in grants.

RESOLVED

          That the Environment and Economy Scrutiny Committee support the budget proposals for 2019/20.