Meeting documents

Cabinet are asked to approve the Strategic Plan and the Revenue and Capital budgets for wider consideration by the Finance, Performance and Resources Select Committee and other interested parties such as the business community and partner agencies in Buckinghamshire.

Cabinet received the report of the Cabinet Member for Finance & Resources setting out the draft revenue and capital budgets for 2015/16 to 2017/18.

The Leader introduced the Draft Revenue and Capital Budgets.  He explained that in February 2013 a four year budget was recommended and considered to be sustainable.  Three significant pressures emerged during the year including the ability to introduce pay and display parking and increased parking enforcement has resulted in a pressure of £0.5m, in Adult Social Care a forecast overspend and there was a rapid increase in the forecast overspend in Children’s Services. The budget needs substantial changes in order to support the Government’s Financial Strategy.  There will be an impact on BCCs responsibility for adults, Children’s Services, road maintenance and increased pressure on the provision of school places.  BCC was the lowest funded County Council in the UK in revenue support grant from the Government and there were no proposed changes in the autumn statement.  The final statement will be published on 17 December. 

The Leader asked about how BCC felt the consultation was able to meet the needs of residents.  The Cabinet Member for Community Engagement reported that 2,034 responses had been received from 425 organisations which was 57% more than last year and that the majority of residents supported a minimum 2% council tax increase.  The residents had a high regard for the services provided by the County Council including roads, protecting vulnerable children and adults and that the main concern was access to high speed broadband.  The Leader acknowledged that residents generally see road improvements as one of the main priorities.  He explained that the increase in funding from Children’s Services reflected the desire to protect the vulnerable and noted that Broadband was very important for residents but not a priority for those residents who already had it.     

The Cabinet Member for Finance & Resources explained that there was a major problem with revenue and that last year the budget for Children’s Services was insufficient.  In Children’s Services a £1m overspend had been forecast and a decision was required on whether to put the overspend into the base budget or leave as a risk. 

The capital commitments include:

·       the reduction in the contribution to the waste reserve

·       maintaining an increased commitment to the road programme     

·       an increase in money to provide additional school places and not all the money was available from central government.

The Service Director Finance and Commercial Services (the Service Director) explained that the proposals set out in the paper showed a balanced revenue and capital budget and a two year settlement.  The autumn statement indicated no additional cuts in 2015/16.  An £11.2m reduction was anticipated in 2015/16.  Changes included an extra £10.5m to take account of the Task and Finish Group recommendations and the Ofsted Improvement Plan, the effects of an aging population was reflected in a 1.99% increase in Council Tax for 2015/16 and the next 2 years.  80% of savings will be achieved through efficiencies.  The capital programme was £364m over 3 years and included priorities of £25m for improving Highways, £30m for primary school places and £25.5m for secondary school places over 3 years. 

The Leader proposed bringing forward the expenditure on the roads on the capital programme and reducing the contribution from revenue to waste reserves.  The revenue contributions to capital were being reduced. It was noted that most portfolios had to fund efficiencies or make service reductions. 

Cabinet was invited to comment and the following points were made:

·         The Education and Skills savings had been achieved through a reduction in costs for Home to School transport as the significant subsidy paid by the County Council on fares was being removed.

·         There was concern about retaining the budget to maintain standards in schools.  During the next 2 years budgets will be reduced to focus on improving performance and therefore school transport must become self- funding.

·         The Cabinet Member for Health and Wellbeing reported that the Medium Term Plan (MTP) required a £12m saving by 2017 despite a 30% increase in the number of people requiring the service and the Learning Disability Service had experienced a 4% increase in spend.  Reports revealed that the service was very efficient based on unit costs and BCC was 26.8% more efficient than neighbouring authorities.  Based on the MTP last year approximately £6m growth in the budget was expected. It will be necessary to revise the savings proposed and additional investment will be required to support the Ofsted recommendations, Winterbourne and the Future Shape Programme.  It was noted that more than £10m of one-off savings had already been achieved in addition to those in the MTP.  Adult Social Care was experiencing the largest changes since 1947 and following the Care Act.  There was a commitment to support the Council but there was a caution that this includes significant risks.  Following the increase in statutory duties it had become necessary to find a more stretching and ambitious way of managing the challenge.

The Leader invited comments and the following points were raised:

·                     The Cabinet Member for Finance and Resources explained that the pressure was in Social Care and not just in Children’s Services.

·                     The Chief Executive noted that the Task and Finish Group looked at the budget for Older People and also requested that the Group reviews the proportion of the budget being spent on Learning Disability.  

·                     A large amount of the capital costs within education will be over 3 years and a significant scale of building will be required to accommodate the extra children requiring the service.  An additional extra 80 forms of entry were created in September 2014 across the County and the ability of schools to expand was becoming a problem.

·                     The Cabinet Member for Finance and Resources noted that one of the huge pressures on BCC was the growing population and there will be huge constraints on what can be achieved.  The percentage of the budget spent on Children’s Services will increase from in 2014/15 12.4% to 16.3% and in Health from 34.7% to 36.9% and the budget for other services will go down. 

·                     The Cabinet Member for Finance and Resources considered that it will be necessary to think strategically about how to manage the budget necessary and to look at reorganisation and consider working with other councils across the South East and that it will be necessary to look at priorities in a much more focussed way and that a decision will be required on what outcomes are the most critical in order to determine how to allocate funds. 

·                     It was considered that prudent budgeting had taken place and that residents recognised that it will be necessary to increase council tax.

·                     The Leader noted that £25m will be spent on the roads additional money will be spent on Children’s Services following the Ofsted inspection and that it will be necessary to reduce spending on broadband and on the waste reserve.

Cabinet was invited to comment in relation to the Equalities Impact Assessment:

·              It was recognised that more work was required.

·              Disappointment was expressed that there was an unnecessary burden on local government.

·              Due regard was made by Cabinet to the Equalities Impact Assessment.
 

RESOLVED

Cabinet:-

Approved the Strategic Plan and the Revenue and Capital budgets for wider consideration by the Finance, Performance and Resources Select Committee and other interested parties such as the business community and partner agencies in Buckinghamshire.