Meeting documents

Recommendation 23 - Medium Term Financial Plan (MTFP) and Budget 2017/18 to 2019/20 (46-47 & 55-76)

 

Recommendation 24 - Asset Management Capital Priorities (47-48 & 77-98)

 

Recommendation 25 - Treasury Management Strategy Statement and Prudential Indicators for 2017-18 (49 & 99-128)

(Notes: 1. Members had been granted dispensations in order to take part and vote in relation to the budget and council tax setting items on the agenda following the elections held in 2013, and subsequent by-elections.

2. The Chairman highlighted that the Council was required to take a recorded vote following discussion of the budget.)

In advance of the budget debate, the following issues were raised in relation to the minutes of the Cabinet on 1 February 2017:

 

Changes to Dorset’s Concessionary Travel Scheme

Members discussed the impact of the Concessionary Travel Scheme at minute 28, which highlighted that there were 60 community transport schemes, and 20 in planning, which included examples of partnership with Dorset Community Transport.  Concerns were also expressed about the impact on rural isolation as a result of the withdrawal of subsidised bus services, to which it was explained that there was a plan to revitalise bus services to make them more inclusive, which would include opening school buses to the public and enabling travel before 9:30am.  It was noted that there were some commercial and contract implications as the procurement process for the future contracts was currently underway.

 

Further concern was expressed regarding the threat of withdrawal of subsidised services from areas of deprivation including Portland, and a request was made for further support as communities in deprived areas were less able to manage community transport schemes.  Members were informed that effort would be made to find solutions to best meet the needs of communities, including Portland. 

 

Recommendation 23 – Medium Term Financial Plan (MTFP) and Budget 2017/18 to 2019/20

Cllr Gould, the Leader of the Council, presented the budget for 2017/18 to 2019/20 (a copy of the Leader's speech is set out in an annexure to these minutes).  He proposed the recommendations put forward by the Cabinet.  The proposals were seconded by Peter Finney as the Deputy Leader.

 

Cllr Janet Dover, Leader of the Liberal Democrat Group, then addressed the meeting and expressed concern regarding continued cuts to budgets and essential services, the amount of reserves and balances, the level of borrowing, and the influence of Government on Council funding for ‘life and death’ services for children and adults. Particular concern was raised in respect of future planned savings regarding the change of terms and conditions for Tricuro staff just 12 months after transferring from the Council; the condition of Dorset’s roads, specifically in relation to potholes; rural bus subsidies which could leave people isolated; and the need for increased funding for adult social care to enable people to leave hospital and live in their homes, or in a care home.  Cllr Dover also described a petition which was currently open and attracting in excess of 1200 signatures in only a few days, which showed that cuts to bus services were not welcomed by Dorset residents.

 

Cllr Paul Kimber, Leader of Labour and Cooperative Group, addressed the meeting to thank the finance team for their hard work, and to staff for continued hard work bearing in mind the financial challenges facing the Council.  He expressed concern regarding any plans for privatisation of any services; that more should be done to focus on homelessness and housing for those in need; the need to provide affordable housing; reinvigoration of towns in relation to vacant shops through the Economy Team; the need to retain and improve hospital provision on Portland; support for buses on Portland being championed by Cllr Kate Wheller; and that committee and council meetings should be webcast to show residents of Dorset what was being debated and to understand the challenges facing the Council.

 

In addition, Cllr Kimber drew attention to previous motions brought to the Council throughout 2016/17 including the development of a national park scheme in Dorset and the consideration of a cooperative approach for the Council for the future. As a final point, he encouraged the finance team to explore becoming a pilot Business Rate Retention Scheme authority.

 

Members took the opportunity to ask questions regarding the budget setting process and particular items within the budget, and Cabinet members responded to each of the individual points raised.  Issues discussed included the collapse in finance from Government which meant that the Council was woefully underfunded; the model of bidding from Government and the UK wide funding regime; the level of borrowing across the authority; the level of council reserves and balances; the Council Tax levels across Dorset; risk in the budget including the Sustainability and Transformation Plan; the Accord review and restructuring of services; provision of the Youth Service; rationalisation of the Council’s property estate and timing of changes, including a 43% increase of staff working at County Hall; the level of homelessness across Dorset; reduction in support and funding directly to the most vulnerable; the impact of rural isolation and loneliness as a result of reducing bus subsidies; community transport schemes; bed blocking in hospitals and the level of support for people wishing to live at home; lobbying and stating that the budgetary situation was not acceptable to Government; the need for the Council to modernise and change to meet the needs of the public; absence of an alternative budget proposed; costs for rubbish to be taken to a household recycling centre; education across the County, and in particular at IPACA; and recognition of the role of carers across the County.

 

In accordance with Standing Order 44, the votes for and against Recommendation 23.1(a) were recorded as follows:-

For (25): Pauline Batstone, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Peter Finney, Spencer Flower, Ian Gardner, Robert Gould, Peter Hall, Jill Haynes, Colin Jamieson, David Jones, Rebecca Knox, Mike Lovell, Andrew Parry, Margaret Phipps, Peter Richardson, William Trite, Daryl Turner, David Walsh and Peter Wharf.

Against (13): Richard Biggs, Janet Dover, Fred Drane, Beryl Ezzard, Matt Hall, David Harris, Susan Jefferies, Trevor Jones, Ros Kayes, Paul Kimber, David Mannings, Clare Sutton and Kate Wheller.

Abstain (0)

 

In accordance with Standing Order 44, the votes for and against Recommendation 23.1(b) were recorded as follows:-

For (25): Pauline Batstone, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Peter Finney, Spencer Flower, Ian Gardner, Robert Gould, Peter Hall, Jill Haynes, Colin Jamieson, David Jones, Rebecca Knox, Mike Lovell, Andrew Parry, Margaret Phipps, Peter Richardson, William Trite, Daryl Turner, David Walsh and Peter Wharf.

Against (11): Richard Biggs, Janet Dover, Fred Drane, Beryl Ezzard, Matt Hall, Trevor Jones, Ros Kayes, Paul Kimber, David Mannings, Clare Sutton and Kate Wheller.

Abstain (2): David Harris and Susan Jefferies.

 

In accordance with Standing Order 44, the votes for and against Recommendation 23.1(c) were recorded as follows:-

For (33): Pauline Batstone, Richard Biggs, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Peter Finney, Spencer Flower, Ian Gardner, Robert Gould, Matt Hall, Peter Hall, David Harris, Jill Haynes, Colin Jamieson, David Jones, Trevor Jones, Paul Kimber, Rebecca Knox, Mike Lovell, David Mannings, Andrew Parry, Margaret Phipps, Peter Richardson, Clare Sutton, William Trite, Daryl Turner, David Walsh, Peter Wharf and Kate Wheller.

Against (5): Janet Dover, Fred Drane, Beryl Ezzard, Susan Jefferies and Ros Kayes.

Abstain (0)

 

In accordance with Standing Order 44, the votes for and against Recommendations 23.2, 3 and 4 were recorded as follows:-

For (37): Pauline Batstone, Richard Biggs, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Janet Dover, Fred Drane, Beryl Ezzard, Peter Finney, Spencer Flower, Ian Gardner, Robert Gould, Matt Hall, Peter Hall, David Harris, Jill Haynes, Colin Jamieson, Susan Jefferies, David Jones, Trevor Jones, Ros Kayes, Paul Kimber, Rebecca Knox, Mike Lovell, David Mannings, Andrew Parry, Margaret Phipps, Peter Richardson, William Trite, Daryl Turner, David Walsh, Peter Wharf and Kate Wheller.

Against (0)

Abstain (1): Clare Sutton

 

Recommendation 24 – Asset Management Capital Priorities

Following a question regarding the recognition of housing as a strategic asset for the Council, it was confirmed that there was a workstream of the Way we Work Programme, chaired by Cllr Steve Butler, which was looking at housing with district and borough councils.  It was also highlighted that through partnership working, the wider public sector in Dorset was developing an action plan on housing to concentrate on areas such as key worker housing, which linked with the key priorities of the Local Enterprise Partnership and the Leaders’ Growth Board.

 

In accordance with Standing Order 44, the votes for and against Recommendation 24 were recorded as follows:-

For (26): Pauline Batstone, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Peter Finney, Spencer Flower, Robert Gould, Peter Hall, Jill Haynes, Colin Jamieson, David Jones, Paul Kimber, Rebecca Knox, Mike Lovell, Andrew Parry, Margaret Phipps, Peter Richardson, William Trite, Daryl Turner, David Walsh, Peter Wharf and Kate Wheller.

Against (11): Richard Biggs, Janet Dover, Fred Drane, Beryl Ezzard, Matt Hall, David Harris, Susan Jefferies, Trevor Jones, Ros Kayes, David Mannings and Clare Sutton.

Abstain (0)

 

Recommendation 25 – Treasury Management Strategy Statement and Prudential Indicators for 2017-18

In accordance with Standing Order 44, the votes for and against Recommendation 25 (Treasury Management Strategy Statement and Prudential Indicators for 2017-18) were recorded as follows:-

For (37): Pauline Batstone, Richard Biggs, Steve Butler, Mike Byatt, Ronald Coatsworth, Robin Cook, Toni Coombs, Hilary Cox, Deborah Croney, Janet Dover, Fred Drane, Beryl Ezzard, Peter Finney, Spencer Flower, Robert Gould, Matt Hall, Peter Hall, David Harris, Jill Haynes, Colin Jamieson, Susan Jefferies, David Jones, Trevor Jones, Ros Kayes, Paul Kimber, Rebecca Knox, Mike Lovell, David Mannings, Andrew Parry, Margaret Phipps, Peter Richardson, Clare Sutton, William Trite, Daryl Turner, David Walsh, Peter Wharf and Kate Wheller.

Against (0)

Abstain (0)

 

Resolved

That the report of the Cabinet meetings held on 16 November, 14 December 2016, 18 January and 1 February 2017 be adopted and Recommendations 23, 24 and 25 (below) from the meeting held on 1 February 2017 be approved.

 

Recommendation 23 – Medium Term Financial Plan (MTFP) and Budget 2017/18 to 2019/20

1. That the County Council be recommended to approve:

a) the revenue budget strategy for 2017/18 to 2019/20

b) the budget requirement and precept for 2017/18

c) the position on general balances and reserves

2. That the Chief Financial Officer present to the County Council a schedule setting out the Council Tax for each category of dwelling and the precepts on each of the Dorset Councils for 2017/18.

3. That the Budget Strategy Task and Finish Group continue in order to develop savings proposals to address budget gaps over the remainder of the MTFP period.

4. That the role of the Forward Together Programme is clarified to ensure managers are held to account for their budgets and ensure that specific, measurable actions are put in place to ensure budgets at risk are managed within the funding parameters agreed by Elected Members.

 

Reason for Recommendations

To approve the Council Tax increase for 2017/18 and to enable work to continue on refining and managing the County Council’s budget strategy for the remaining MTFP period.

 

Recommendation 24 – Asset Management Capital Priorities

That the County Council be recommended to approve the bids to be included in the capital programme 2017/18 to 2019/20.

 

Reason for Recommendation

The available resources after taking account of committed projects were insufficient to meet all the new bids in their entirety. It was therefore necessary for the Cabinet to confirm priorities for inclusion in the Capital Programme.

 

Recommendation 25 – Treasury Management Strategy Statement and Prudential Indicators for 2017-18

That the County Council be recommended to approve:

1. The Prudential Indicators and Limits for 2017/18 to 2019/20.

2. The Minimum Revenue Provision (MRP) Statement.

3. The Treasury Management Strategy.

4. The Investment Strategy.

5. Delegation to the Chief Financial Officer to determine the most appropriate means of funding the Capital Programme.

 

Reasons for Recommendations

1. The Prudential Code provided a framework under which the Council’s capital finance decisions were carried out. It required the Council to demonstrate that its capital expenditure plans were affordable, external borrowing was within prudent and sustainable levels and treasury management decisions were taken in accordance with professional good practice. Adherence to the Prudential Code was mandatory as set out in the Local Government Act 2003.

2. The report recommended the indicators to be applied by the Council for the financial years 2017/18 to 2019/20. The successful implementation of the code would assist in the Council’s objective of developing ‘public services fit for the future’.