Agenda item

To present the Revenue and Capital Budget to the Council Overview Board, ahead of a decision being made by Cabinet on 2 February 2016.

Declarations of interest:

None

Witnesses:

David Hodge, Leader of the Council

Kevin Kilburn, Deputy Chief Finance Officer

Key points raised in the discussion:

1.   The Chairman of the Board introduced and thanked the Deputy Finance Officer for the final report. Members expressed disappointment at the lateness of papers and agreed that it was difficult to digest them in a short amount of time. The Leader of the Council stated that the figures were changing daily and no information was available until the 17th December 2015. In addition to this he stated that there could potentially be a 3.99% increase in Council Tax. An increase in Council Tax was considered by some Members to be the only feasible way to fund the increasing demand in order to keep running statutory services. It was noted that this report was part of an ongoing process and the Board would continue to have a role in scrutinising budgets. It was highlighted to the Board Members that no decisions would be made until the final financial settlement had been agreed.

2.   The Board were informed by the Leader of the Council that Surrey County Council was currently awaiting the outcome of a request for a £20 million transition funding grant to be agreed by the government. A Member of the Board questioned the outcome of the financial state if Surrey County Council does not receive the transitional funding of 20 million. The Leader of the Council stated that an emergency Cabinet meeting would be arranged if the additional funding was not received.

3.   The Deputy Chief Finance Officer informed the Board that the overall figure of savings needed in the next financial year was £85million. Members expressed great concerns over the sum and there was a discussion regarding ways in which savings could be made. A Member stated that Surrey residents provide the second largest amount of taxation in the Country and local taxation should be spent on local residents.

4.   The Chairman of the Council Overview Board invited the Chairmen of each Scrutiny Board to comment on the current financial situation for the services within their remit. The Chairman of the Economic Prosperity, Environment & Highways (EPEH) stated he had nothing to add until the final figure was revealed. The Chairman of the Education & Skills Board stated that there was a particular focus on SEND (special educational needs and disabilities) transport review due to the forecast overspends.

5.   The Chairman of the Resident Experience Scrutiny Board informed the Board that he recently met with services including Surrey Fire and Rescue, Trading Standards and Cultural Services to discuss the financial budget. The Board would be focusing their March 2016 meeting on the future of the Library Service.

Bob Gardener left the meeting at 11.05am and returned at 11.13am.

6.    It was highlighted by the Social Care Services Board Chairman that there was currently a lack of frontline staff for Adult Social Care and Children’s Service, which had been ongoing for a number of years. This was due to the increasing demand for services. Cllr Bill Chapman was unable to attend the meeting but gave his comments. These included the 20% cut in Public Health being a vast concern. A Wellbeing and Health Sub-Group took place on Tuesday 26 January to discuss further funding opportunities.

              Colin Kemp left the meeting at 11.35am and returned at 11.42am

7.    Disappointment was expressed at the lack of information made available to the scrutiny boards, however, it was recognised that until the Local Government Settlement was finalised in February 2016, it would be difficult to perform robust scrutiny of service budgets. 

8.    Members recognised the work being undertaken by the Cabinet and finance officers to produce a balanced budget.  The Board noted that while the budget had been balanced for 2016/17, this placed reliance on the provision of transitional relief from government to compensate for the degree of ‘shock’ in the Provisional Settlement.  The Leader explained that if the transitional funding was not received by the Council, he would arrange an emergency Cabinet meeting to determine how to balance the 2016/17 budget.

Following the debate, the Council Overview Board resolved:

1.    Confirms its support for the proposal to accept the option of raising council tax by 2%, to ensure additional ring-fenced funding for Adult Social Care;

2.    Welcomes the lobbying of government undertaken by the Leader of the Council to extend the option of raising council tax to our partners in Districts & Borough Councils, given that these authorities provide some non-statutory adult social care services;

3.    Asks that government be lobbied to review or lift the current restriction on council tax increases for local authorities;

4.    Asks the Cabinet to consider whether a referendum should be held regarding increasing council tax in order to maintain services.

5.    Wishes to emphasise the importance of prioritising income generation and efficiency savings, before cutting services and increasing council tax.

Recommended (to Cabinet):

(a)  That the Scrutiny Board Chairmen ensure that final service budgets and the Medium Term Financial Plan are shared with Boards ahead of being presented to Cabinet on 22 March 2016;

(b)  That Scrutiny Board finance sub-groups scrutinise service budgets and present any recommendations to Cabinet, via the Council Overview Board.