Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2015/084

Contact: Katy Jurczyszyn, Senior Financial Adviser (Capital & MTFP) Tel: (01865) 323975

Report by Chief Finance Officer (CA6).

This report is the final report to Cabinet in the series on the Service & Resource Planning process for 2016/17 to 2019/20, providing councillors with information on budget issues for 2016/17 and the medium term. It sets out the proposed 2016/17 Corporate Plan, budget, the draft 2016/17 – 2019/20 Medium Term Financial Plan (MTFP) and 2015/16 – 2019/20 Capital Programme.  Information outstanding at the time of the Cabinet meeting will be reported to Council when it considers the budget on 16 February 2016.

The Cabinet is RECOMMENDED to approve:

(1)        the Review of Charges as set out in Annex 1.

The Cabinet is RECOMMENDED to RECOMMEND Council to approve:

(a)        the Corporate Plan;

(b)        in respect of revenue:

(1)       a budget for 2016/17 and a medium term plan to 2019/20, based on the proposals set out in Section 4.2;

(2)          a council tax requirement (precept) for 2016/17;

(3)          a council tax for band D equivalent properties;

(4)          virement arrangements to operate within the approved budget;

(c)      in respect of treasury management:

(1)       the Treasury Management Strategy Statement and Annual Investment Strategy;

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

(3)          that any further changes required to the 2016/17 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)          the Prudential Indicators as set out in Appendix A of Section 4.5;

(5)          Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 4.5;

(6)          the Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 4.5;

(7)          the Treasury Management Policy Statement as set out in Appendix E of Section 4.5;

(d)          approve a Capital Programme for 2015/16 to 2019/20  as set out in Section 4.9 including:

                  (1)          the new capital proposals as set out in Section 4.9.1 (Appendix 3);

                  (2)          the Highways Structural Maintenance Programme 2016/17 and 2017/18 as set out in Section 4.9.2;

(e)          to delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget.

Cabinet had before them the final report in the series on the Service & Resource Planning process for 2016/17 to 2019/20, providing councillors with information on budget issues for 2016/17 and the medium term. It set out the proposed 2016/17 Corporate Plan, budget, the draft 2016/17 – 2019/20 Medium Term Financial Plan (MTFP) and 2015/16 – 2019/20 Capital Programme.  Information outstanding at the time of the Cabinet meeting will be reported to Council when it considers the budget on 16 February 2016.

Clare Ellis, spoke in support of homeless support services and illustrated their value by detailing her own experience as a service user.

Audrey Irons spoke in support of the homeless support services praising them for their person centred, individual support. She asked the Cabinet not to take a decision which would fail the rough sleepers in Oxfordshire.

Charlie Payne spoke against the budget proposals, particularly those relating to children’s centres. She called on the Cabinet to resign rather than to accept that there was no choice but to make the proposed savings.

Mary Stiles, spoke against the proposals affecting children’s centres and bus subsidies. She stated that the proposals were short sighted, would have a catastrophic effect and in the long run cost more.

Josephine French spoke in support of children’s centres referring to evidence that stress I children had an effect on their long term development. She supported a universal service that protected against those long term social implications and protected against the generational cycle within families.

Mark Bhagwandin, commended the focus of the new Corporate Plan but was concerned that the vulnerable required funds set aside, in particular for the protection of children’s centres. He commended the work of children’s centres in improving people’s confidence and social skills. He commented that closure would be a false economy as the services they provided would still be required.

Jill Huish spoke against the proposals for children’s centres referring to her personal experience of the difference they made to people’s lives. She supported the principle of universal services without which those in danger of domestic abuse would be invisible.

Jo Lovell spoke in support of children’s centres highlighting their positive role in her life and drawing attention to the distress of stakeholders/users when they realised the extent of the cuts.

Reverend Andrew Bevan drew attention to the long term consequences of the proposed savings on the most vulnerable; particularly children aged 0-5 years affected by the children’s centres proposals.

Dr Ramzy stressed three priorities for society: education, security and health. He spoke against the proposed savings that took from the less fortunate. He asked that the Council look at making greater use of reserves and also commented that he would be happy to pay additional council tax to preserve services.

Councillor Charles Mathew, local councillor highlighted the importance of income generation and urged Cabinet to look to increase commercial income from fees for services to those able to afford it. He also asked that further consideration be given to getting the best return on property assets and that congestion charging be introduced. Where we were currently unable through regulation to charge for services (such as waste recycling centres or concessionary fare cards) he asked that the Cabinet lobby for a change to the regulations.

Councillor David Williams, local councillor spoke against the proposed savings which would have a catastrophic impact on the citizens of Oxfordshire. He called on the Cabinet to make a stand by resigning and refusing to support a budget made necessary by central Government.

Councillor Nick Hards, local councillor and Shadow Cabinet Member for Finance referred to the very difficult position of all Shire Counties following the settlement on 17 December and expressed disappointment that Oxfordshire MPs were not doing more to challenge it. He referred to the summary of proposed budget changes and felt that although none there were acceptable that the changes to social care services were worse evn than the proposals for children, education and families. He highlighted the need for intermediate care in the community and urged the Cabinet to use some of the County Council land to bring this about. He also suggested that it was possible to rationalise office use and that where the right deal was available then there might be a need to sell land. Finally he suggested that the review and rationalisation of senior management should be extended across the County Council. 

Councillor Liz Brighouse, speaking as Chairman of Performance Scrutiny Committee commented that they had spent over 6 hours scrutinising the budget, going through the proposals and considering what it meant for the most vulnerable. At the time the Committee had thought that it had the worst case scenario and today she would be telling cabinet about the least acceptable cuts. She highlighted the areas that gave Committee Members most concern which were set out in the written note from the Committee. She also indicated that the Committee had considered whether to recommend Cabinet to consider an additional increase in Council Tax. However this had not been supported: it could not raise sufficient funds for all the services and even at 4% the increase would be difficult for some families.

Councillor Lawrie Stratford, Cabinet Member for Finance, in introducing the report responded to the comments made. He thanked Performance Scrutiny Committee for their measured comments, even though they had been overtaken by events. He noted that the settlement announced on 17 December could not have been anticipated as the formulae had changed without notice.The obligation on Cabinet and full council was to deliver a balanced budget that the Chief Finance Officer was able to support. Resignation by the Cabinet would not achieve anything except the likelihood that the decision would be taken by central government with no local input. He intended to continue to fight for the best possible outcome for the people of Oxfordshire. He detailed the papers before Cabinet and moved the recommendations.

Lorna Baxter, Chief Finance Officer highlighted section 4.12 which set out the Service and Community Impact Assessment for the totality of savings.

During discussion the Leader of the Council thank Lorna Baxter and her team for all their work so far and acknowledged that a great deal of work was still to be done. The papers for Council would be published before all the information was available. He thanked everyone who had taken part in the Talking Oxfordshire consultation and stressed that the Council had put forward in that consultation what was expected to be the worst case.

RESOLVED: to:

(a)            approve the Review of Charges as set out in Annex 1;

(b)            RECOMMEND Council to approve:

(a)         the Corporate Plan;

(b)         in respect of revenue:

(1)      a budget for 2016/17 and a medium term plan to 2019/20, based on the proposals set out in Section 4.2;

(2)            a council tax requirement (precept) for 2016/17;

(3)            a council tax for band D equivalent properties;

(4)            virement arrangements to operate within the approved budget;

(c)     in respect of treasury management:

(1)      the Treasury Management Strategy Statement and Annual Investment Strategy;

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

(3)            that any further changes required to the 2016/17 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)            the Prudential Indicators as set out in Appendix A of Section 4.5;

(5)            Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 4.5;

(6)            the Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 4.5;

(7)            the Treasury Management Policy Statement as set out in Appendix E of Section 4.5;

(d)            approve a Capital Programme for 2015/16 to 2019/20  as set out in Section 4.9 including:

                      (1)             the new capital proposals as set out in Section 4.9.1 (Appendix 3);

                      (2)             the Highways Structural Maintenance Programme 2016/17 and 2017/18 as set out in Section 4.9.2;

(e)            to delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget.