Agenda item

A report by the Executive Director Finance and Public protection had been circulated together with a separate document which detailed the Executive's budget and council tax proposals.

 

It was moved, seconded and

 

RESOLVED

 

(1)  That there be one debate;

 

(2)  That councillor M S Jones, Executive Councillor for Finance and Property, in introducing and moving the budget and in responding to issues raised during the debate be allowed to speak without limit of time;

 

(3)  That proposers of the amendments each be allowed to speak without limit of time;

 

(4)  That Councillors seconding the motions, each be allowed to speak to 6 minutes;

 

(5)  That other speakers be allowed to speak for 3 minutes

 

(6)  That no further substantial amendments be moved (other than the original amendments moved by Group Leaders)

 

An amendment was proposed and seconded as follows:

 

This year's budget was the subject of extensive consultation and engagement activity with a wide range of stakeholders. Unprecedented levels of feedback have been received and it's only right that the Council should seek to address some of the key issues identified by that activity.

The Government have themselves received extensive feedback on their own proposals published in December in the Provisional Local Government Finance Settlement. They have listened to representations from Shire Counties that those initial proposals were inequitable in terms of both sufficiently recognising the cost pressures of providing services in a rural environment but also the last minute redistribution of revenue support grant away from county areas to metropolitan areas and London Boroughs. Additional funding has been forthcoming for Lincolnshire in the form of £5.2m in rural services grant next year and £2.6m the year after - £7.7m in total. This had been added to the Financial Volatility Reserve prior to consideration of the final budget recommendations.

It is proposed that the recommended changes set out below are funded by the additional resources allocated by the Government. These were matters highlighted in budget engagement feedback from the public. This represents just under £5m over the next two years.

                                          i.    Winter maintenance - there will be no reduction in the funding for this service over the next two years. Use will be made, as necessary, of the earmarked reserve set up for this service.

 

                                        ii.    Bus subsidies - the proposed saving of £2.2m over the next two years be removed from the budget. As far as 2016/17 is concerned this requires £1.2m to be built back into the budget. The requirement for additional funding in the 2017/18 budget will be the full £2.2m.

 

                                       iii.    Children's Centres – no Tier 3 Centres will close in the year ahead or in the year commencing April 2017. No saving had been proposed in 2016/17 as it was not envisaged feasible to close the Centres in that year given the need to undertake a formal consultation. A potential saving of £420k was under consideration for the 2017/18 budget. That will not now proceed.

 

The Council still faces significant underlying cost pressures going forward with a potential budget shortfall for 2017/18 of around £30m even after implementing savings as proposed in this budget. It therefore makes sense to continue with the vast majority of the savings initiatives proposed in the budget whilst recognising some of the key concerns expressed by those responding to our engagement activity.

The timing and total funding required for both the above remains to determined at this time but it is proposed to take the required funding from the Financial Volatility Reserve and that the Director of Finance & Public Protection be granted delegated authority to take such action.

The proposed action requires additional funding of £1.2m next year and this will be funded by reducing the Financial Volatility Reserve by that amount.

The Director of Finance & Public Protection has confirmed that these proposals are compliant with the Financial Strategy of the Council and present a balanced budget for 2016/17. The Council is predicting an ongoing budget deficit over the three financial years after 2016/17 and substantial savings or other actions will need to be found in those years to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £21.5m.

Councillor M S Jones, as mover of the original motion, accepted this amendment which subsequently became part of the substantive motion.

It was moved and seconded:

(1)  That the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D "Budget Consultation") be noted;

 

(2)  That the Section 151 Officer's Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 10 – "Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves") be noted;

 

(3)  That the Impact Analysis relating to the increasing of  Council Tax by 3.95% in 2016/17 set out in the appended Budget Book (Appendix C – Equality Impact Analysis relating to the increasing the Council Tax by 3.95% in 2016/17) be noted;

 

(4)  That the service revenue budgets for 2016/17 contained in the appended Budget Book (Table 2 "Net Service Revenue Budget 2016/17") be agreed;

 

(5)  That the capital programme and its funding contained in the appended Budget Book (Section 7 "Capital Programme") and (Appendix M "Capital programme") be agreed;

 

(6)  That the County Council element of the council tax for a band D property at £1,128.83 for 2016/17 contained in the appended Budget Book (Appendix B "County Precept 2016/17") be agreed;

 

And that together these form the Council's Budget

 

(7)  That the Council's Financial Strategy contained in the appended Budget Book (Appendix E "Financial Strategy") be approved;

 

(8)  That the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix L – "Prudential Indicators") be noted;

 

(9)  That a minimum revenue provision (MRP) be based on the asset life method and made in equal instalments over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 9 "Minimum Revenue Provision") be agreed.

 

(10) That authority be delegated to the Executive Director of Finance and Public Protection to update the appended Budget Book to reflect any amendments agreed by the Council.

 

(11) That the additional resources allocated by the government be used to continue funding for winter maintenance, bus subsidies and Children's Centres, as set out in the amendment above.

 

 

An amendment (i) was moved and seconded by the Labour Group as follows:

 

Local Government in Lincolnshire is facing unprecedented cuts in government funding. Public services are under attack because the Conservative Chancellor of the Exchequer thinks it is right to balance the nation's book by 2019/20. The consequence here in Lincolnshire with the 'deepest cuts we have ever faced' is that local people will be expected to pay more by way of Council Tax and get less by way of services; pay more, get less. The amendment set out below takes account of the expectation that council taxes should be used to a greater extent than is being proposed to pay for council services in the current year.

That is why this Labour proposal seeks to protect in the coming year the lives, welfare and  interests of Lincolnshire people who are in need of vitally important council services like child and adult support services including Children's Centres, road maintenance work, community safety initiatives and subsidies to bus services.

Accordingly It is proposed that the following amendments are made to the circulated 'Council Budget 2016/17' report:

REVENUE

Restore Commission activities in Children's Centres (Page 93 line 4) £662k.

Restore School Improvement service and activities for non-statutory support for children with disabilities (Page 11 para 5.7) £1.511m.

Make planned efficiency savings in home to school transport but use funds released to protect the service (Page 95 line 4) £1.47m.

Readiness for Adult Life – spend more on child support services with increasing demands in light of the County being the lowest spending upper tier council (apportion over Page 98 lines 1-7) £1.318m.

In respect of Children are Safe & Healthy restore Family Support; Commissioning & Performance; Targeted Support for Young People; and CAMHS (Section 75)  (Page 99 lines 4 to 7) £589k.

In respect on Adult Safeguarding partially restore funding to DoLs Best Interest Assessments (Page 101 line 4) £1.35m.

In respect of Specialist Adult Services spend more on support for adults with learning disability, autism and mental health problems (apportion over Page 108 lines 1-6) £311k.

In respect of Adult Frailty do not increase user contributions (apportion over Page 103 lines 13-17) £2.478m.

Provide a budget for Local Welfare Support in addition to use of existing reserve (Page 109 line 11) £250k.

Partially restore Health Improvement activities (Page 111 line 4) £2.212m.

Partially restore Sexual Health Services (Page 111 line 9) £441k.

Substantially restore Prevention & Treatment of Substance Misuse (Page 111 line 10) £908k.

Restore spend for Transportation (bus subsidies) (Page 113 line 5) £1.563m.

Partially restore Highway Maintenance (Page 113 line 6) £1.400m.

Partially restore Highway Network Management (Page 113 line 7) £700k.

Protect spending on Household Waste Recycling Centres (Page 116 line 4) £298k.

Partially restore Sustaining and Growing Business and the Economy (apportion over Page 117 lines 4-7) £400k.

Substantially restore Fire & Rescue Services and remove threat of station closure (Page 119 line 8) £829k.

Partially restore Community Safety Initiatives budget (Page 119 line 5) £237k.

Restore Road Safety Partnership funding (Page 119 line 6) £119k.

FUNDING

The above measures total £19.046m and the proposed sources of funding are as follows:

Reduce the Strategic Communications budget by a further £90k (Page 123 line 11).

Apply £18.956m from the Financial Volatility Reserves in the expectation that this will be supplemented and the coming year end by at least £10million from the anticipated underspend across the Council budget.

The Director of Finance & Public Protection has confirmed that theseproposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2016/17. The Council is predicting an ongoing budget deficit over the three financial years after 2016/17 and substantial savings or other actions will need to be found in those years to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £3.75m.

 

 

An amendment (ii) was moved and seconded by UKIP as follows:

 

The UKIP Group would like to make the following amendments to the 2016/17 Council Budget.

Revenue Budget

The following changes are proposed to the Revenue Budget for next year.

a) Remove the non-Adult Care precept element (1.95%) of the Council Tax increase (£4.549m).  

b) Restore the cuts made to the Bus Services & other transport initiatives (£1.563m).

c) Restore the budget cut made to Highway Asset Maintenance (£3.084m).

d) Include the sum of £300k to allow for the hire of more PSCOs.

e) Under Children's Services - Kids are Safe & Healthy - give back the £589k reduction in budget and increase it by another £11k to round this up to £600k in total.

f) Because the size of this council will not reduce this year we feel it is still important to retain the staff we have until after such changes are made.  Therefore, we would like.to re-fund the cuts in staff budgets on Business Support & Democratic Services (£1.328m).

g) The Registrars, Celebrations & Coroners services will be moving into shared premises during this year to cut departmental costs.  They will also be introducing initiatives which will provide income for their services.  Once again, we would like to restore the modest cut of £60k to their department until after these changes have been made.

h) A reduced saving in the revenue budget as a consequence of the proposal below to part fund the new capital allocation to Corporate Property from halving expenditure on the existing Street Lighting upgrade programme (£600k).

These proposals cost an additional £12.084m in 2016/17.

Capital Budget

The following changes are proposed to the Capital Budget for next year.

Add £5.0m to the Corporate Property Budget to give additional funding for the Adult Care 'Extra Care Housing Project'.

Funding – Revenue Budget

The following changes are proposed to fund the £12.084m.

Use of the Financial Volatility Reserve (£9.402m)

Reduction in the General Reserve to 3% (£2.114m)

Reduce the Economic Development budget further (£0.384m)

Reduce the increase in Adult Care charges(£0.184m)

Funding – Capital Budget

The following changes are proposed to fund the £5.0m.

Reduce the existing street lighting upgrade programme by £3m.

Allocate £2m from the Capital Contingency budget for next year.

We commend these changes to the Council.

The Director of Finance & Public Protection has confirmed that these proposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2016/17. The Council is predicting an ongoing budget deficit over the three financial years after 2016/17 and substantial savings or other actions will need to be found in those years to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £13.3m.

 

 

An amendment (iii) was moved and seconded by the Lincolnshire Independents as follows:

 

This budget is too small to deliver the services that the residents of Lincolnshire expect and deserve. This government has severely reduced our income. At the same time they have added to the already rising demands, for example, by announcing a living wage, but not funding it. £44m Cuts proposed by the Conservatives in this budget are on top of the £125m taken out over the last four years.

 

We propose that an all-party campaign starts now to tackle the government on the amount of income tax that is returned to us for essential local services in future years.

 

This conservative budget proposes massive cuts to essential services an increased council tax and we are presented with a plan that is already propped up with £20m from reserves. We propose raising that slightly by £5m to invest to save as follows;

           
1) We propose keeping services that enhance the economy on which our future income depends. Thus we propose restructuring but not cutting rural transport, which underpins our rural and urban businesses and communities (£2.2m)

2) We propose fair school transport to the nearest appropriate school. All Lincolnshire children should be treated equally when it comes to school transport. For fairness no child should be prevented from attending the nearest appropriate school, when that is a grammar school, simply because their parents can't afford the bus fare. We propose this is implemented at cost, with a neutral effect on the budget.

3) We propose supporting youth, health and building the economy through converting our children's centres into family centres including help with work placements (£600k).

4) We propose keeping well supported local facilities that would only make a small saving if closed. Hence we propose Investing in our rural communities through the big society grant, rural touring and community grants and local facilities such as a recycling site (£400k).

5) We propose increasing the income to support our council services by a concerted effort to make our assets work better for us, not focused on selling them off.  We recognise that means some sales, but also purchase and development of buildings to increase the rate of return in rents and build healthy communities at the same time. This could be through an arms-length profit-making organisation where the County Council is the shareholder. (Target 5pc return on capital investment.)

These proposals require £3.2m of revenue budget funding in 2016/17.

Funding

In response to comments from residents in our areas, the following changes are proposed to the Revenue Budget to fund the £3.2m.

Rebalancing the Special responsibility allowances to save 20% (£100k).

Restructure the Council's Communications activity to save 20% (£200k).

Reduce the Financial Volatility Budget (£2.9m)

The Director of Finance & Public Protection has confirmed that these proposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2016/17. The Council is predicting an ongoing budget deficit over the three financial years after 2016/17 and substantial savings or other actions will need to be found in those years to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £20.1m.

 

A recorded vote was held for the amendment (i), and upon being put to the vote, the amendment was lost.

 

Details of recorded vote taken:

 

Those voting for the amendment (i):

 

K J Clarke, P M Dilks, S R Dodds, G J Ellis, N I Jackson, R C Kirk, D C Morgan, N M Murray, R B Parker, Mrs H N J Powell, J M Renshaw and R A Renshaw.

 

Those voting FOR – 12

 

Those voting against the amendment (i):

 

B Adams, M G Allan, W J Aron, A M Austin, J W Beaver, Mrs P A Bradwell, D Brailsford, C J T H Brewis, A Bridges, Mrs J Brockway, M Brookes, C J Davie, R G Davies, R G Fairman, I G Fleetwood, R L Foulkes, M J Hill OBE, D C Hoyes MBE, D M Hunter-Clarke, M S Jones, B W Keimach, S F Kinch,  C E H Marfleet, J R Marriott, R A McAuley, D McNally, P J O'Connor, Mrs M J Overton MBE, C R Oxby, C Pain, N H Pepper, R J Phillips, Mrs S Ransome, Mrs S Rawlins, Mrs A E Reynolds, P A Robinson, Mrs L A Rollings, R A Shore, Mrs E J Sneath, T M Trollope-Bellew, A H Turner MBE JP, W S Webb, M A Whittington, P Wood, Mrs S Woolley, L Wootten, R Wootten, C N Worth, B Young.

 

Those voting AGAINST – 49

 

Those abstaining:

 

Mrs V C Ayling, R J Hunter-Clarke, C E D Mair, S L W Palmer, Mrs N J Smith.

 

ABSTENTIONS - 5

 

A recorded vote was held for the amendment (ii), and upon being put to the vote, the amendment was lost.

 

Details of recorded vote taken:

 

Those voting for the amendment (ii):

 

Mrs V C Ayling, J W Beaver, R G Fairman, R L Foulkes, D M Hunter-Clarke, R J Hunter-Clarke, C E D Mair, D McNally, Mrs H N J Powell, Mrs S Ransome, Mrs A E Reynolds, Mrs N J Smith,

 

Those voting FOR – 12

 

Those voting against the amendment (ii):

 

B Adams, M G Allan, W J Aron, A M Austin, Mrs P A Bradwell, D Brailsford, C J T H Brewis, A Bridges, Mrs J Brockway, M Brookes, C J Davie, R G Davies, I G Fleetwood, M J Hill OBE, D C Hoyes MBE, M S Jones, B W Keimach, S F Kinch, C E H Marfleet, J R Marriott, R A McAuley, P J O'Connor, Mrs M J Overton MBE, C R Oxby, C Pain, N H Pepper, S L W Palmer, R J Phillips, Mrs S Rawlins, P A Robinson, Mrs L A Rollings, R A Shore, Mrs E J Sneath, T M Trollope-Bellew, A H Turner MBE JP, W S Webb, M A Whittington, P Wood, Mrs S Woolley, L Wootten, R Wootten, C N Worth, B Young.

 

Those voting AGAINST – 43

 

Those abstaining:

 

K J Clarke, P M Dilks, S R Dodds, G J Ellis, N I Jackson, R C Kirk, D C Morgan, N M Murray, R B Parker, R A Renshaw.

 

ABSTENTIONS – 10

 

A recorded vote was held for the amendment (iii), and upon being put to the vote, the amendment was lost.

 

Details of the recorded vote taken:

 

Those voting for the amendment (iii):

 

M G Allan, A M Austin, Mrs M J Overton MBE, S L W Palmer, Mrs H N J Powell, P Wood.

 

Those voting FOR – 6

 

Those voting against the amendment (iii):

 

B Adams, W J Aron, Mrs V C Ayling, Mrs P A Bradwell, D Brailsford, C J T H Brewis, A Bridges, Mrs J Brockway, M Brookes, C J Davie, R G Davies, I G Fleetwood, R L Foulkes, M J Hill OBE, D C Hoyes MBE, D M Hunter-Clarke, M S Jones, B W Keimach, S F Kinch, C E H Marfleet, J R Marriott, D McNally, P J O'Connor, C R Oxby, C Pain, N H Pepper, R J Phillips, Mrs S Ransome, Mrs S Rawlins, P A Robinson, Mrs L A Rollings, R A Shore, Mrs E J Sneath, T M Trollope-Bellew, A H Turner MBE JP, W S Webb, M A Whittington, Mrs S Woolley, L Wootten, R Wootten, C N Worth, B Young.

 

Those voting AGAINST – 42

 

Those abstaining:

 

J W Beaver, K J Clarke, P M Dilks, S R Dodds, G J Ellis, R G Fairman, R J Hunter-Clarke, N I Jackson, R C Kirk, C E D Mair, R A McAuley, D C Morgan, N M Murray, R B Parker, Mrs A E Reynolds, R A Renshaw, Mrs N J Smith.

 

ABSTENTIONS – 17

 

A recorded vote on the amended motion was taken.  Upon being put to the vote, the motion was carried.

 

Details of the recorded vote taken:

 

Those voting for the amended motion:

 

B Adams, W J Aron, A M Austin, Mrs P A Bradwell, D Brailsford, C J T H Brewis, A Bridges, Mrs J Brockway, M Brookes, C J Davie, R G Davies, R G Fairman, I G Fleetwood, R L Foulkes, M J Hill OBE, D C Hoyes MBE, M S Jones, B W Keimach, S F Kinch, C E H Marfleet, J R Marriott, R A McAuley, P J O'Connor, C R Oxby, N H Pepper, R J Phillips, Mrs S Rawlins, P A Robinson, Mrs L A Rollings, R A Shore, Mrs E J Sneath, T M Trollope-Bellew, A H Turner MBE JP, W S Webb, M A Whittington, P Wood, Mrs S Woolley, L Wootten, R Wootten, C N Worth, B Young.

 

Those voting FOR – 41

 

Those voting against the amended motion:

 

K J Clarke, P M Dilks, S R Dodds, G J Ellis, N I Jackson, R C Kirk, D C Morgan, N M Murray, Mrs M J Overton MBE, C Pain, R B Parker, Mrs J M Renshaw, R A Renshaw.

 

Those voting AGAINST – 13

 

Those abstaining:

 

M G Allan, Mrs V C Ayling, J W Beaver, D M Hunter-Clarke, R J Hunter-Clarke, C E D Mair, D McNally, S L W Palmer, Mrs H N J Powell, Miss F E E Ransome, Mrs A E Reynolds, Mrs N J Smith.

 

ABSTENTIONS – 12

 

RESOLVED

 

(1)  That the responses to the consultation on the Council's budget proposals as contained in the appended Budget Book (Appendix D "Budget Consultation") be noted;

 

(2)  That the Section 151 Officer's Statement on the Robustness of the Budget and the Adequacy of Reserves as set out in the appended Budget Book (Section 10 – "Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves") be noted;

 

(3)  That the Impact Analysis relating to the increasing of  Council Tax by 3.95% in 2016/17 set out in the appended Budget Book (Appendix C – Equality Impact Analysis relating to the increasing the Council Tax by 3.95% in 2016/17) be noted;

 

(4)  That the service revenue budgets for 2016/17 contained in the appended Budget Book (Table 2 "Net Service Revenue Budget 2016/17") be agreed;

 

(5)  That the capital programme and its funding contained in the appended Budget Book (Section 7 "Capital Programme") and (Appendix M "Capital programme") be agreed;

 

(6)  That the County Council element of the council tax for a band D property at £1,128.83 for 2016/17 contained in the appended Budget Book (Appendix B "County Precept 2016/17") be agreed;

 

And that together these form the Council's Budget

 

(7)  That the Council's Financial Strategy contained in the appended Budget Book (Appendix E "Financial Strategy") be approved;

 

(8)  That the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix L – "Prudential Indicators") be noted;

 

(9)  That a minimum revenue provision (MRP) be based on the asset life method and made in equal instalments over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 9 "Minimum Revenue Provision") be agreed.

 

(10) That authority be delegated to the Executive Director of Finance and Public Protection to update the appended Budget Book to reflect any amendments agreed by the Council.

 

(11) That the additional resources allocated by the government be used to continue funding for winter maintenance, bus subsidies and Children's Centres, as set out in the amendment above.