Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2018/130

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Strategy & Monitoring) Tel: 07584 909518

 

Report by Director of Finance (CA6).

 

This report is the final report to Cabinet in the series on the service & resource planning process for 2019/20 to 2022/23, providing councillors with information on budget issues for 2019/20 and the medium term. The report sets out the draft council tax precept for 2019/20, the revenue budget for 2019/20, the Medium Term Financial Plan (MTFP) to 2022/23, the Capital Programme to 2028/29 as well as supporting strategies.  Information outstanding at the time of the Cabinet meeting will be reported to Council when it considers the budget on 12 February 2019.

 

Cabinet’s budget proposals take into consideration the latest information on the council’s financial position outlined in this report; comments from the Performance Scrutiny Committee meeting on 13 December 2018 as well as 10 January 2019; and comments from the public consultation on the budget.  As final notification of some funding streams is awaited, some further changes may be made to the budget proposals ahead of full Council on 12 February 2019.

 

Cabinet is RECOMMENDED to approve:

 

·         The Review of Charges for 2019/20

·         The Financial Strategy for 2019/20

·         The Earmarked Reserves and General Balances Policy Statement 2019/20.

 

Cabinet is RECOMMENDED to RECOMMEND Council to approve:
 

·                in respect of revenue:

·                a budget for 2019/20 and a medium term plan to 2022/23, based on the proposals set out in Section 4.2;

·                a council tax requirement (precept) for 2019/20;

·                a 2019/20 council tax for band D equivalent properties;

·                virement arrangements to operate within the approved budget;

 

·                in respect of capital:

·                the Capital & Investment Strategy for 2019/20 - 2028/29 including the Prudential Indicators and Minimum Revenue Provision Methodology Statement;

·                a Capital Programme for 2018/19 to 2028/29 as set out in Section 4.9.1 including:

(i)        the new capital proposals as set out in Section 4.9.2;

(ii)       the Highways Structural Maintenance Programme 2019/20 and 2020/21 as set out in Section 4.9.3;

 

·                in respect of treasury management:

·                the Treasury Management Strategy Statement and Annual Investment Strategy for 2019/20 incorporated in the Capital & Investment Strategy in Section 4.9;

·                to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

·                that any further changes required to the 2019/20 strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

·                the Treasury Management Prudential Indicators;

·                The Specified Investment and Non Specified Investment instruments as set out in Appendix A and B of Section 4.9;

 

·                to delegate authority to the Leader of the Council, following consultation with the Director of Finance and the Cabinet Member for Finance, to make appropriate changes to the proposed budget.

 

Cabinet considered the final report in the series on the service & resource planning process for 2019/20 to 2022/23, providing councillors with information on budget issues for 2019/20 and the medium term. The report set out the draft council tax precept for 2019/20, the revenue budget for 2019/20, the Medium Term Financial Plan (MTFP) to 2022/23, the Capital Programme to 2028/29 as well as supporting strategies. Cabinet noted that information outstanding at the time of the Cabinet meeting would be reported to Council when it considers the budget on 12 February 2019.

 

Cabinet’s budget proposals took into consideration the latest information on the council’s financial position outlined in the report; comments from the Performance Scrutiny Committee meeting on 13 December 2018 and 10 January 2019 as well as comments of the Transformation Sub-Committee held on 17 January 2019; and comments from the public consultation on the budget.  As final notification of some funding streams is awaited, some further changes may be made to the budget proposals ahead of full Council on 12 February 2019.

 

Councillor Brighouse, Chairman of Performance Scrutiny Committee and Joint Audit & Governance and Performance Scrutiny (Transformation) Sub-Committee referred to the comments from those meetings included in the papers before Cabinet. She commented that members had spent over 8 hours over three meetings in scrutinising the budget proposals. Members had done a magnificent job as seen by the changes in the papers today. Councillor Brighouse highlighted issues that would be a continuing focus for scrutiny including the need to understand third party spend and the changed public service and local democracy landscape. No-one could consider the savings that were necessary to be a good thing, so it was important to ensure that we as a Council understood that we are getting value for money for our most vulnerable people and that the public are able to understand how services are being provided. On transformation a real concern had been about keeping staff during the change process.

 

Councillor Bartholomew, Cabinet Member for Finance responded to Councillor Brighouse thanking her for her diligence. The issue of third party spend was one that would be looked at. He noted that the proposals relating to mental health had been proposals and that following comments they had been amended. He agreed that everyone was concerned for the vulnerable and disadvantaged and that the transformation programme was not just about savings but was about doing things better to help those people. Councillor Reeves, Cabinet Member for Transformation added that staff were front and centre of the transformation programme and the aim was to have better motivated, better franchised staff.

 

Dr Judith Wardle, Carers Voice, spoke against the proposals affecting carers and care packages for the elderly living at home. Dr Wardle asked Cabinet to consider whether they were meeting the requirements of the Care Act Guidance 2018, stressing the obligation for a person-centred approach. Dr Wardle questioned the Community Impact Assessment that did not mention family carers, many of whom had gone through reassessment last year and were themselves often elderly. The proposals could lead to more people being dependent on the care system and so not effective in making the savings. Dr Wardle expressed concern at the information excluded due to commercial sensitivity which she had not seen in budget proposals before.

 

Mr Dan Knowles, Oxfordshire Mind CEO and Mr Stuart Bell CBE, Chief Executive of Oxford Health NHS Foundation Trust were speaking on behalf of the Oxfordshire Mental Health Partnership. Mr Knowles thanked Cabinet for listening and amending the proposals for mental health referring to the really good work that was underway. However, Mr Knowles whilst welcoming the deferral of the £600k reduction expressed concern at the impact it would have when implemented. Mr Bell highlighted the role of social workers within multi-disciplinary teams and noted that with the £600k social workers could care for 400 people with mental health issues. They urged Cabinet to reconsider the proposal whilst welcoming the year to engage positively.

 

Responding to a question on the funding granted to CAMHS Mr Bell emphasised that the £5.4m of additional funding was about increasing access to the service from a very low base of 25% to 30%. He noted that Oxfordshire was making good progress and that access was better than elsewhere but still left 70% without access.

 

Councillor Stratford, Cabinet Member for Adult Social Care responded to the comments made acknowledging that any changes to mental health funding was likely to be sensitive. That was the reason for the consultation and he had been pleased to receive a robust response. Cabinet had listened, but it would still be difficult. He looked forward to the future discussions and recognised the work of the voluntary sector.

 

Mr Joe Wilson, Teaching Assistant St. Ebbes Primary School referred to the situation faced by those in poverty or destitute including the working poor. This included those in support role at schools. They were locked into a cycle and he commented that austerity was not working. He urged councillors to join the National Education Union network, and for Cabinet to set a living wage and to refuse to set a budget that harms the poorest. Councillor Lindsay-Gale, Cabinet Member for Education and Cultural Services responded that she had sympathy and that the Council was lobbying hard to get more funding for Oxfordshire schools. She worked closely with the Schools Forum to ensure the best outcome for people working in our schools.

 

Councillor Glynis Phillips, Shadow Cabinet Member for Finance, commented that the budget demonstrated that austerity was not over. She highlighted the cut to the Public Health Grant. Referring to the investing to save agenda in relation to LED street lighting she queried what strategies there were for other areas. Councillor Phillips, referred to uncertainties caused by still awaiting government information, uncertainty over Brexit and uncertainty in the medium term due to the government spending review. Councillor Phillips welcomed the review of charges but made a number of detailed comments including in relation to street parking charges and the need to monitor the effect on take up of lessons of the increase in charges for the music service. Referring to the proposals for mental health, Councillor Phillips welcomed the response to comments made by Performance Scrutiny Committee and during public consultation but remained concerned at the planned cuts for 2020/21. She welcomed the new Transformation Sub-Committee that would add rigour to the transformation programme. Councillor Phillips noted the issues facing CEF in terms of delivering savings and emphasised that the needs of children were vital, and that assessment and reassessment should not be driven by costs. Finally, Councillor Phillips thanked the Finance Team for the work involved in delivering a balanced budget.

 

Councillor Bartholomew responding to the points raised, commented that he shared Councillor Phillip’s sentiments on late notification from government and would continue to encourage government to be quicker. The position for 2020/21 was high on the agenda and he was concerned to address it as soon as possible. Councillor Bartholomew agreed that the Transformation Sub-Committee was an important part of the process of transformation. A number of proposals were being looked at in relation to charges to manage congestion and the overriding principles would be that any changes must be combined with benefits. Councillor Bartholomew commented that he was very much a believer in the benefits of music as a transformative process and would like to look at that further. Councillor Lindsay-Gale, Cabinet Member for Education and Cultural Services added that there was already a scheme in place where by children on free school meals could access the service for free.

 

Cabinet Members responded to other points made.

 

Councillor Bartholomew, introduced the contents of the report and moved the recommendations. Lorna Baxter, Director for Finance, highlighted the additional funding for Adult’s and Children’s Social Care in 2019/20 and future NHS funding for mental health. In relation to the status on savings it was not expected that all would be achieved, and this was included in the contingencies referred to at paragraph 60 of the report.

 

During discussion Cabinet:

 

·         Thanked the Finance Team for the tremendous job they were doing, noting that the Council was legally obliged to have a balanced budget. They commented on the lengthy iterative process of setting a budget that was refined as clearer government figures became available.

·         Councillor Reeves particularly thanked finance officer for working with those involved in transformation to ensure robust governance processes that were essential to the programme’s success.

·         Highlighted the high levels of investment in Oxfordshire.

·         Noted that the spending review was currently a block. They welcomed the short term funding they had received from government but longer term stability would be good.

 

RESOLVED:            to approve:

 

·         The Review of Charges for 2019/20

·         The Financial Strategy for 2019/20

·         The Earmarked Reserves and General Balances Policy Statement 2019/20.

 

to RECOMMEND Council to approve:
 

·         in respect of revenue:

· a budget for 2019/20 and a medium term plan to 2022/23, based on the proposals set out in Section 4.2;

·                a council tax requirement (precept) for 2019/20;

·                a 2019/20 council tax for band D equivalent properties;

·                virement arrangements to operate within the approved budget;

 

·         in respect of capital:

· the Capital & Investment Strategy for 2019/20 - 2028/29 including the Prudential Indicators and Minimum Revenue Provision Methodology Statement;

· a Capital Programme for 2018/19 to 2028/29 as set out in Section 4.9.1 including:

(i)                     the new capital proposals as set out in Section 4.9.2;

(ii)          the Highways Structural Maintenance Programme 2019/20 and 2020/21 as set out in Section 4.9.3;

 

·         in respect of treasury management:

· the Treasury Management Strategy Statement and Annual Investment Strategy for 2019/20 incorporated in the Capital & Investment Strategy in Section 4.9;

· to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

· that any further changes required to the 2019/20 strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

· the Treasury Management Prudential Indicators;

· The Specified Investment and Non Specified Investment instruments as set out in Appendix A and B of Section 4.9;

 

·         to delegate authority to the Leader of the Council, following consultation with the Director of Finance and the Cabinet Member for Finance, to make appropriate changes to the proposed budget.