Issue - meetings

Budget strategy and medium-term financial plan (MTFP)

 

 

Meeting: 30/01/2024 - Cabinet (Item 47)

47 Budget strategy and medium-term financial plan (MTFP) pdf icon PDF 820 KB

To consider the report of the Portfolio Holder for Finance, Commercial and Capital Strategy.

Additional documents:

Minutes:

The Portfolio Holder for Finance, Commercial and Capital Strategy presented the Budget Strategy and medium-term financial plan (MTFP) for recommendation to Council.

 

The Portfolio Holder acknowledged that there had been a significant consultation process involving all members of the council, across all political parties. The process took the form of budget presentations, task and finish groups and detailed consideration by both scrutiny committees. Their feedback was included within the budget report to Cabinet at Appendix 6.

 

Members were advised that the proposed increase in council tax was 2.9985% in addition the social care precept would be set at 1.9975% to ensure the appropriate funding of social care. Therefore, the overall increase in council tax would be 4.996%.

 

The Portfolio Holder reported that, throughout the budget setting process, the level of savings associated with “Our Future Council” had been a concern for some members. With the additional funding that had recently been announced by central government, the Portfolio Holder intended to amend the budget proposals so that the “Our Future Council” saving target for next year be re-profiled from 12 million to 8 million pounds. The “Our Future Council” programme would remain under continued review to ensure that its savings target could be met.

 

The recommendations were seconded by Cllr S Flower.

 

In response to a question regarding the rise in council tax and the financial burden on those who were the most vulnerable in the community, the Portfolio Holder confirmed that Cabinet had recently approved the new “Local Council Tax Reduction Policy” meaning that subject to circumstances, vulnerable residents could receive up to 100 per cent support towards their council tax.  Individuals could also seek advice from the Citizens Advice Bureau.

 

The Chairman invited the Chairman of Place and Resources Scrutiny Committee and other non-executive members to ask questions and make comments on the report.

 

Recommendation to Full Council

 

(a)  That the revenue budget summarised in Appendix 1, be agreed.

 

(b)    That the increase in general Council Tax of 2.9985% and 1.9975% in the Social Care Precept, providing a Band D Council Tax figure for Dorset Council of £2,001.15; an overall increase of 4.996%, be agreed.

 

(c)    That the Council Tax base agreed by the Section 151 Officer earlier in this budget setting process as shown in appendix 2, be agreed.

 

(d)    That the change to the current scheme of Local Council Tax Support as set out in the report to Cabinet of 30 January, reflecting the decision previously made at full Council on 14 December 2023, be agreed.

 

(e)    That the Capital Strategy, set out at Appendix 3, and the 2024/25 – 2027/28 programme in section 23 of the report to Cabinet of 30 January 2024 be agreed.

 

(f)     That the treasury management strategy as set out in Appendix 4 be agreed.

 

(g)    That the assumptions used to develop the Budget Strategy and Medium-Term Financial Plan (MTFP), as set out throughout this report be agreed.

 

(h)    That the recommended balances on earmarked reserves and on general funds, including the  ...  view the full minutes text for item 47

Meeting: 17/01/2024 - Place and Resources Scrutiny Committee (Item 50)

50 Budget and Medium-Term Financial Plan Strategy report pdf icon PDF 131 KB

To receive a report of the Corporate Director for Finance and Commercial.

Additional documents:

Minutes:

The committee was invited to consider the budget proposals for 2024/25 prior to consideration at Cabinet on 30 January 2024 and Full Council on 13 February 2024. The report gave a summary of progress to date on the budget strategy and process and provided the opportunity for the scrutiny committees to review further, budget assumptions and actions being proposed to deliver a balanced budget for 2024/25.

 

The Place and Resources Scrutiny Committee had the opportunity to consider the implications of the proposals on behalf of residents of Dorset and to provide constructive challenge to decision makers before a final decision was made. It was noted that the comments made by the committee would be reported to Cabinet on 30 January 2024 and taken into consideration as part of the budget setting process.

 

A short introduction and overview of the budget proposals was provided by the Executive Director of Corporate Development followed by an exploration of the budget proposals in a number of key theme areas.

 

Further to the discussion held, the Chairman provided a summary of the key points raised during the discussion in relation to each area covered by the committee and noted that the points below would be submitted to Cabinet as part of the budget setting process:

 

Workforce Issues

 

·       The committee note that Dorset Council has spent around £14m a year over the last couple of years on the employment of agency staff, which is a more expensive option. It is flagged up that driving forward the transformation process is imperative to reduce costs in this area

·       It is important that Legal Services staffing is kept to full strength in order to mitigate the risk to the council

·       There needs to be sufficient funding and focus on communications and engagement to ensure that the council’s recruitment programme is successful

·       The committee recognise that the recruitment and retention of staff continues to be a challenge particularly with the wage economy, competition with other local authorities and with a national shortage of local government officers in some service areas.

Transformation

 

·       Clarification is sought on the position with Public Works Loans as this may affect Dorset Council’s working with town and parish councils

·       The committee is confident with the Invest to Save strategy and transformation project

·       It is noted that the sponsorship and income stream through the use of council assets could be developed further to become more commercial and bring in a bigger income for the council

·       The committee note the role of the Our Future Council programme to find efficiencies and transformation in services, with an initial focus on Place and Corporate areas.  Assurance will be sought on progress with the programme in September/October 2024 with regular monitoring opportunities for councillors provided.

Home to School Transport

 

·       There is a need for additional placements at the Dorset Centre of Excellence to be progressed at pace to assist with relieving SEN budget pressures

·       The committee highlight the importance of Dorset Council working with maintained schools and academies to progress the  ...  view the full minutes text for item 50

Meeting: 12/01/2024 - People and Health Scrutiny Committee (Item 53)

53 Budget and Medium-Term Financial Plan (MTFP) Strategy Report pdf icon PDF 131 KB

To consider a report by the Executive Director of Corporate Development.

 

Additional documents:

Minutes:

The Executive Director for Corporate Development introduced the budget and Medium-Term Financial Plan. Overall, the budget proposed an 8% increase in funding for the council, which included a 5% increase in council tax. The proposed budget included a savings target of £12m for the Our Future Council programme. The budget setting process until this point was outlined.

 

The Committee and non-committee members raised a series of issues and recommendations for Cabinet to consider prior to finalising the budget. The table below summarises the issues raised, and responses given at the committee meeting, as well as the recommendations for Cabinet to consider.

 

 

Issues raised by the People and Health Scrutiny Committee

 

Response

Children’s Services

The Executive Director of People – Children gave a short presentation on the transformation, savings, and external funding for Children’s Services. The presentation is attached to these minutes.

 

Were there any planned cuts to staffing levels?

 

There were no savings planned through job cuts. Some recruitment may be withheld for 3 months when a vacancy arises to ensure that the post is right.

 

Was the council making savings from Family Hubs?

 

The council was not proposing savings from reduction in the number or scale of operations of Family Hubs. However, the work enabled would lead to a reduction in high level need which would create the savings included in the proposed budget.

 

What benefit would £110k being allocated to the Birth to Settled Adulthood Head of Service post bring to the council?

 

The Birth to Settled Adulthood programme would improve services for young people transitioning into adulthood, up to the age of 25. It required significant leadership, and the post would be a complex role. The funding was for the total cost of the post rather than the salary.

 

How could national changes to children’s services policy affect the budget?

 

The Council was part of the Families First for Children pathfinder which enabled Dorset Council to be further ahead than other councils on this major national policy change. The council was working with the government on policy changes for school attendance and education.

 

What would be the risk of increasing the number of unaccompanied asylum-seeking children but not increasing the funding? Would costs for support services decrease as children become more integrated?

 

The council has made a commitment to meet the requirement set by government. Integration through foster carers or supported accommodation would bring costs down. Staffing has been future proofed in case the number of unaccompanied asylum-seeking children increased. There was full cost recovery for accommodation costs.

 

Was there enough funding to look after unaccompanied asylum-seeking children to age 25?

 

There were currently over 500 care leavers. It was built into the budget in terms of staffing.

The financial risks associated with the High Needs Block.

The high needs block was the most significant financial risk to the council. The Statutory Instrument was in place until April 2026, which if not extended would mean that the Council would have to account for a significant debt .  ...  view the full minutes text for item 53