Agenda item

Council Budget 2018/19

Meeting of Council, Friday, 23rd February, 2018 10.00 am (Item 58.)

Minutes:

A report by the Executive Director for Finance and Public Protection had been circulated together with a separate document entitled 'Council Budget 2018/19', which described the Executive's Budget and council tax proposals.

It was moved and seconded and

RESOLVED

(1) That there be one debate;

(2) That Councillor M J Hill OBE, Leader of the Council, 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 for six minutes;

(5) That other speakers be allowed to speak for three minutes; and

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

It was moved and seconded:

That the Council:

1. Has due regard to the responses to the consultation on the Council's Budget Book proposals as contained in the appended Budget Book (Appendix D – Budget Consultation Feedback);

2. Has due regard to 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 11 – Section 151 Officer's Statement on the Robustness of the Budget and Adequacy of Reserves);

3. Has due regard to the Impact Analysis relating to increasing the Council Tax by 4.95% in 2018/19 set out in the appended Budget Book (Appendix C – Impact Analysis relating to increasing the Council Tax by 4.95% in 2018/19);

4. Approves:

4.1 The service revenue budgets for 2018/19 contained in the appended Budget Book (Table 4 – Net Service Revenue Budget 2018/19) amended so that the Net Service Revenue Budget for 2018/19 set out in Table 4 of the Budget Book is amended to:-

(a) Increase the Revenue Budget for the Sustaining and Developing Prosperity Through Infrastructure Commissioning Strategy in 2018/19 by £3.3m to £43.970m; and

(b) Increase the amount to be transferred to or from Earmarked Reserves by £3.3m to -£5.076m;

4.2 The Capital programme and its funding contained in the appended Budget Book (Section 8 – Capital Programme) and (Appendix N – Capital Programme)

4.3 The County Council element of the council tax for Band D property at £1,231.47 for 2018/19 contained in the appended Budget Book (Appendix B – County Precept 2018/19)

As together being the Council's Budget

5. Approves the Council's Financial Strategy contained in the appended Budget Book (Appendix E – Financial Strategy);

6. Approves the Council's Flexible Use of Capital Receipts Strategy contained in the appended Budget Book (Appendix G – Flexible Use of Capital Receipts Strategy);

7. Approves the prudential targets for capital finance and notes the prudential indicators contained in the appended Budget Book (Appendix M – Prudential Indicators);

8. Approves that the minimum revenue provision (MRP) be based on the asset life method, charged on an annuity basis for major infrastructure projects and in equal instalments for all other assets, over the estimated life of the assets acquired through borrowing as set out in the appended Budget Book (Section 10 – Minimum Revenue Provision);

9. Approves the change in the 2017/18 revenue budget as detailed in paragraph 1.6 to 1.7 of the report; and

10. Delegates to the Executive Director for Finance and Public Protection authority to make consequential amendments to the Budget Book to reflect the above amendments referred to at paragraph 4.1 above.

The Director for Finance and Public Protection has confirmed that these proposals are compliant with the existing Financial Strategy of the Council and represent a balanced budget for 2018/19. Subject to the outcome of the Government's Fairer Funding Review of local government funding the Council is potentially facing an ongoing budget deficit over the medium term and substantial savings or other actions could be needed in the period beyond April 2020 to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £43.970m.

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

The Labour Group's alternative budget recognises that our residents look to the County Council to provide important services and opportunities to protect and promote their interests. Three such areas have been identified for extra funding.

Improving Social Mobility for Children and Young People: Last year the Social Mobility Commission published the State of the Nation report on social mobility in England. The research showed amongst other things that there were marked variations in the educational outcomes for children between different council areas in Lincolnshire. The widest gap was for 'Average attainment 8 score for pupils eligible for Free School Meals where North Kesteven was placed 23^rd nationally whereas West Lindsey was in 304^th. For the indicator '% of children eligible for Free School Meals achieving at least the expected level of reading, writing and maths at the end of key stage 2 we see Boston placed 26^th, South Holland at 66^th, North Kesteven at 81^st whereas Lincoln are at 249^th and East Lindsey at 265^th.

The aim of the increased spending is to break down barriers to social mobility which too many of our children face today. It is a long-term project and it is important that it starts now. If not, then another year group of children will not have every chance to go as far as their talents and drive will take them.

Citizens Advice Bureau (CAB) Funding: Many people in our county are entitled to and rely on state benefits. For those people who need help and advice to make sure that they get their full entitlement, the only independent service is that provided by CABs. The particular area of CAB expenditure which this budget seeks to protect relates to 'Income Maximisation' which is about CABs helping people to get their full entitlement to state benefit, which in turn aids social mobility.

Park and Ride in Lincoln: Lincoln, as the major centre of population and business activity in the county, needs a permanent, properly funded Park and Ride service like those operating in other major cathedral cities like Norwich (which has 6 sites), York (6), Salisbury (5), Chester, Exeter and Winchester each with 4 sites), Canterbury and Durham (3 sites each). The city needs one to reduce environmental pollution and traffic congestion and improve journey times for local people and businesses, commuters, out-of-city shoppers and visitors.

It is proposed that the following amendments are made to the circulated 'Council Budget 2018/19' report:

Extra Spending (Revenue) 2018/19

· Add additional spending for the following range of social mobility related issues in Children's Services designed to level up the opportunity for educational attainment across the County for all children and young people:

Establish a social mobility task force (page 75, new line 3.2)	£850k
Expand the Small Schools Project (page 75, new line 3.3)	£1,400k
Expand research based interventions at primary schools in target areas (page 75, new line 3.4)	£750k
Trial research based interventions KS4 in target areas (page 75, new line 3.5)	£500k
Transition Post 16 - Introduce wraparound support for NEETS through bespoke support to develop essential skills for life and work (page 77, new line 3.2)	£815k
Introduce a social mobility drive through Children's Centre's (page 73, new line 3.1)	£550k

· Reinstate cuts in Citizen Advice Services funding to February 2017 levels plus inflation (page 91, new line 3.3) add £420k

· Cost of Borrowing for new capital schemes listed below:

Park and Ride in Lincoln (page 28, Appendix A, line 27)

(Full year borrowing cost from 2019/20 is £600k pa)

add £150k

In addition revenue running costs of £1.15m pa for park & ride would be incurred from 2019/20 when the scheme is assumed to be operational (page 93, new line 7.3)

Extra Capital Spending

Park and Ride in Lincoln (page 21, Table 5, Gross Programme line,

2018/19 column) add £10m

(Add an additional line to Appendix N, page 68, under Environment & Economy to reflect the above additional capital scheme)

Funding of the Extra Spending 2018/19

£5.435m to be taken from the Financial Volatility Reserve. That reserve account will have an estimated balance of £53.541m at 31/03/2018 of which £1.776m is already spoken for in the Conservative-led council budget leaving the account at £46.330m after allowing for the additional £5.435m revenue spending.

It is expected that there will be an underspending of £20m in the current financial year which has been factored into the estimated year-end balance on the Financial Volatility Reserve of £53.541m.

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 2018/19. Subject to the outcome of the Government's Fairer Funding Review of local government funding the Council is potentially facing an ongoing budget deficit over the medium term and substantial savings or other actions could be needed in the period beyond April 2020 to deliver a balanced budget. These proposals reduce the funding available to assist in balancing future budgets from the Financial Volatility Reserve to £46.330m.

In accordance with the Local Authorities (Standing Orders)(England)(Amendment) Regulations 2014, a recorded vote was held for the amendment (i) and, upon it being put to the vote, the amendment was lost.

Details of the recorded vote taken:

Those voting for the amendment (i):

M D Boles, K J Clarke, G E Cullen, S R Dodds, P M Key, Mrs J E Killey, R B Parker and R A Renshaw.

Those voting FOR – 8

Those voting against the amendment (i):

B Adams, W J Aron, T R Ashton, Mrs A M Austin, Mrs W Bowkett, Mrs P A Bradwell, D Brailsford, C J T H Brewis, A Bridges, Mrs J Brockway, M Brookes, R D Butroid, L A Cawrey, Mrs K Cook, P E Coupland, C J Davie, R G Davies, B M Dobson, M T Fido, R L Foulkes, M A Griggs, R Grocock, A G Hagues, M J Hill OBE, R J Kendrick, S R Kirk, Mrs C J Lawton, C S Macey, C E H Marfleet, C Matthews, A P Maughan, D McNally, Mrs A M Newton, C R Oxby, N H Pepper, Mrs C L Perraton-Williams, C E Reid, P A Skinner, Mrs E J Sneath, A Spencer, H Spratt, A N Stokes, M J Storer, C L Strange, E W Strengiel, Mrs C A Talbot, M E Thompson, R H Trollope-Bellew, M A Whittington, Mrs S Woolley, L Wootten, R Wootten, N Worth and B Young.

Those voting AGAINST – 54

Those abstaining:

Mrs M J Overton MBE

ABSTENTIONS – 1

In accordance with the Local Authorities (Standing Orders)(England)(Amendment) Regulations 2014, a recorded vote on the motion was taken. Upon being put to the vote, the motion was carried.

Details of the recorded vote taken:

Those voting for the motion:

Those voting FOR – 54

Those voting against the motion:

M D Boles, K J Clarke, G E Cullen, S R Dodds, P M Key, Mrs J E Killey, Mrs M J Overton MBE, R B Parker and R A Renshaw.

Those voting AGAINST – 9

There were NO ABSTENTIONS.