Agenda item

(CSP: BEC, SLE, P&S, HQL, MEC, BEC1, BEC2, SLE1, SLE2, P&S1, HQL1 and MEC1)

Purpose:

To consider and recommend to Council the 2016/17 Revenue Budget. This report highlights that for West Berkshire residents there will be a Council Tax requirement of £82.28m requiring a Council Tax increase of 1.99% in 2016/17 and a 2% ring-fenced precept for adult social care. The Council has had to find savings of £14m in 2016/17, the highest in the Council’s history.

Given the scale of task to arrive at a balanced budget for next year a number of significant saving proposals have been made including reductions to libraries, children centres, home to school transport, public transport subsidy, highway maintenance, provision of care services and many others.

The proposed savings will have significant implications for staff. Subject to the outcome of public consultations, 127 employees will be at risk of redundancy and associated exit costs are estimated to be in the region of £2m.

The report also proposes the Fees and Charges for 2016/17 as set out in Appendix H and the Special Expenses as set out in Appendix I.

Resolved that the following be recommended to Council:

(1)     That the responses received to each of the 47 public facing savings proposals in relation to Phase 1 of the public consultation exercise undertaken on the 2016/17 budget be noted.

(2)     That Council consider the use of the 2016/17 transitional grant as a means of mitigating the impact of some of the Phase 1 proposals and where this is not used, the recommendations set out in the Overview and Recommendations template be approved.

(3)     That those public health grant funded services (marked as “to be progressed”) in the Overview and Recommendations template totalling £114,000 be progressed.

(4)     That the 2016/17 revenue budget requirement for Council Tax setting purposes of £82.28 million requiring a Council Tax increase of 1.99% be approved.

(5)     That the 2% ring-fenced adult social care precept be applied.

(6)     That the Fees and Charges be approved as set out in Appendix H and the appropriate statutory notices be placed where required.

(7)     That the Special Expenses be approved as set out in Appendix I.

(8)     That the Efficiency Strategy for Use of Capital Receipts be approved as set out in Appendix O.

(9)     That the Executive, on 24 March 2016, be given delegated authority to adjust the Council’s budget plans, should the responses to Phase 2 of the public consultation require it to do so.

(10)  That the Executive, on 24 March 2016, propose where the transitional grant funding of £1.39m will be used.

This decision is not subject to call in as:

·      the item is due to be referred to Council for final approval.

therefore it will be implemented immediately.

Councillor Roger Croft presented the report (Agenda Item 5) which asked the Executive to consider and recommend to Council the 2016/17 Revenue Budget.

In introducing the report, Councillor Croft highlighted the fact that the Council had been faced with an enormous financial challenge which was unprecedented. In order to achieve a balanced budget it had been necessary, regrettably, to propose that Council Tax be increased by 1.99% in 2016/17 together with a 2% ring-fenced precept for Adult Social Care. Councillor Croft pointed out that Council Tax levels had seen no increases in four out of the last six years, with the last increase being in 2013/14. Where there had been increases, these had been kept below 2%. This step was particularly necessary when considering that the Council Tax Freeze Grant issued by the Government in recent years had ceased.

It had also been necessary for the Council to find savings of £14m in 2016/17, the highest in the Council’s history, and given the scale of the task to arrive at a balanced budget for 2016/17 a number of significant saving proposals had been made. This included reductions to libraries, children centres, home to school transport, public transport subsidy, highway maintenance, provision of care services and many others. 47 public facing savings proposals had formed the Phase One public consultation and the Phase Two process was ongoing and had a closing date of 7 March 2016. There were 16 public facing savings proposals in Phase Two representing savings of £2.1m. Councillor Croft highlighted the importance of receiving consultation feedback.

Councillor Croft then took the opportunity to thank all those residents who had responded to the Phase One consultation, which had been based on the Council’s assumption that the Revenue Support Grant would be reduced by 25% in 2016/17 rather than the 44% which had eventually transpired. Over 2,500 responses were received to the Phase One consultation and Councillor Croft was heartened to see that West Berkshire’s communities had already stepped forward and were working with the Council to find new ways to deliver much valued services. CCTV across a number of parishes was one example, and this showed that West Berkshire had communities and partners who were prepared to help.

Following the hard work of Officers, Councillors and West Berkshire’s MPs, the Council had secured a grant of £2.8m transitional funding over the next two financial years. This had provided the Council with further scope to respond to residents’ feedback when setting the budget for 2016/17 and as a result of this, and following consideration of Phase One consultation feedback, Councillor Croft proposed that the Executive recommend to Council that transitional funding be made available in 2016/17 in the following areas:

·              Short Breaks for Disabled Children - £170,000.

·              Two Saints Floating Support Service and Step by Step Lodgings Service - £100,000.

·              Empowering West Berkshire - £25,000.

·              Learning Disability Clients - £100,000.

A further review of residents feedback would commence once the Phase Two consultation had completed on 7 March 2016. The Executive, subject to Council approval to do so, would then look at how the remaining transitional funding for 2016/17 could be used.

It was proposed that the Council would set its budget on 1 March 2016, prior to the closing date of the Phase Two consultation. However, it would also be proposed to Council that the Executive, at its meeting on 24 March 2016, be given delegated authority to adjust plans post the setting of the budget on 1 March 2016 and subject to the outcome of the Phase Two consultation.

Councillor Alan Macro was pleased to note the areas identified for transitional funding that would be recommended to Council.

Councillor Macro noted from the report that the Medium Term Financial Volatility Reserve (MTFVR) had reduced during the course of 2015/16 and queried the reasons for this. Andy Walker explained that this reserve had primarily been used to help balance the 2015/16 revenue budget.

Councillor Lee Dillon advised of an approach made by Thatcham Town Council to West Berkshire Council with a view to a meeting being arranged to consider how services at risk, for example bus services, could continue. To date this had not been possible and Councillor Dillon sought a commitment from the Executive to co-ordinate such a meeting(s) with Thatcham Town Council and other interested town/parish councils.

Councillor Dominic Boeck responded to this point by stating that active dialogue was ongoing between West Berkshire Council and town/parish councils which included Thatcham Town Council. These towns and parishes had been asked to consider what they were able to contribute to services and responses were awaited.

Councillor Croft added his awareness of the public concern in relation to public transport which was demonstrated by the level of consultation response to these proposals (this formed part of the ongoing Phase Two consultation) and asked Councillor Garth Simpson (Portfolio Holder for Transport) if he would be able to arrange/facilitate a meeting with parishes on this matter. Councillor Simpson confirmed his willingness to do so.

Councillor Croft stated that alternative service delivery models could be considered, dependent on the consultation feedback. He reiterated his gratitude to West Berkshire’s MPs for helping to achieve transitional monies which provided the Council with some financial flexibility.

Councillor Croft then explained, primarily for the benefit of members of the public present, that more significant debate would be held on the Revenue Budget and other budget items at the Council meeting on 1 March 2016. The main function of the Executive this evening was to make recommendations for Council’s consideration.

RESOLVED that the Executive would recommend to Council:

(1)     That the responses received to each of the 47 public facing savings proposals in relation to Phase 1 of the public consultation exercise undertaken on the 2016/17 budget be noted.

(2)     That Council consider the use of the 2016/17 transitional grant as a means of mitigating the impact of some of the Phase 1 proposals and where this is not used, the recommendations set out in the Overview and Recommendations template be approved.

(3)     That it be a recommendation to Council that those public health grant funded services (marked as “to be progressed”) in the Overview and Recommendations template totalling £114,000 be progressed.

(4)     That the 2016/17 revenue budget requirement for Council Tax setting purposes of £82.28 million requiring a Council Tax increase of 1.99% be approved.

(5)     That the 2% ring-fenced adult social care precept be applied.

(6)     That the Fees and Charges be approved as set out in Appendix H and the appropriate statutory notices be placed where required.

(7)     That the Special Expenses be approved as set out in Appendix I.

(8)     That the Efficiency Strategy for Use of Capital Receipts be approved as set out in Appendix O.

(9)     That the Executive, on 24 March 2016, be given delegated authority to adjust the Council’s budget plans, should the responses to Phase 2 of the public consultation require it to do so.

(10)  That the Executive, on 24 March 2016, propose where the transitional grant funding of £1.39m will be used.

Reason for the decision: Formulation of the 2016/17 Revenue Budget is required in order to meet the Council’s statutory duties.

Other options considered: The scale of the Local Government Settlement has left West Berkshire Council with limited options. The Council are proposing to increase Council Tax by 1.99% and apply the adult social care ring-fenced precept of a 2% increase to Council Tax. If these options were not taken, the savings requirement would be £3.2m higher. The Council has considered all options available in order to keep the savings requirement to the level it is. These options include use of capital receipts and transitional grant funding.