Agenda item

To consider this report.

NON-KEY DECISION

Following consideration of the officer report, appendices and discussion, the Executive:

a.  Endorsed and recommends to December's Full Council that the Council notes that it has declared a financial emergency and endorses the range of actions and mitigations being taken forward. Furthermore, that the Council fully supports the Executive and Senior Officers to continue its discussions with the Department for Levelling Up, Housing and Communities (DLUHC) and formally requests a capitalisation direction in order to set the 2024/25 budget.

b.  Approved a consultation and engagement process on Council Tax and potential service changes with the public and business sectors in line with the proposals set out in this report.

c.  Approved the re-allocation of the Earmarked Reserves as set out in Appendix 1 and receives a further update in February 2024.

d.  Received the draft 2024/25 budget proposals at the January Executive including details of the savings proposals and finance settlement for the council.

e.  Noted the ‘Vision for a sustainable Somerset Council’ and approves that an outline Business Case is developed for the January 2024 Executive meeting.

f.   Noted the review of the 2023/24 capital programme and the review of new bids for 2024/25 schemes with the full details being included in the report to Executive in January 2024 for approval by February 2024 Council.

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited the Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, to introduce the report. 

The Deputy Leader and Lead Member for Resources and Performance, Cllr Liz Leyshon, introduced the report, highlighting:that this report provided an financial position update with a further update to be considered at the January 2024 Executive meeting and final proposals to be considered at the 7 February 2024 Executive meeting, for recommendation to Council, the inclusion of work on the vision for the new Somerset Council; the good progress made with the external auditors; the uncertainty of inflation and bank rates and the impact of the national living wage implications, the disappointment of the  autumn statement; the clarification of how the Council tax in Somerset compares with other Councils in the South West, and possible future changes; the work to align the work of Scrutiny Committee - Corporate and Resources and the Audit committee in the Democratic calendar; and the need for careful consideration of strategic risk.

The Executive Director for Resources and Corporate Services, Jason Vaughan, further added to the above points, highlighting: that the report provided an update on the progress in reducing the budget gap; that the report was considered at Scrutiny Committee - Corporate and Resources on 5 December 2023, and that they will consider the draft 2024/25 Budget proposals at their meeting on 1 February 2024 with their comments and observations on the draft budget proposals to be considered by the Executive on 7 February 2024, with the final budget proposals and recommendations on the 2024/25 budget to full Council on 20 February 2024; the stark national forecast from the LGA and CCN; the latest forecast on the reduction of the Somerset Council budget gap - £87m; the work on identification of further potential savings; the review repurpose of the Earmarked Reserves from the five predecessor Councils; that the Council has been pro-active in writing to the Department for Levelling Up. Housing & Communities (DLUHC) outlining the financial challenges, and have been assigned a key contact; the work on the capitalisation programme 2024/25; summarised the published Local Government Policy Statement; the next steps in finalising the budget proposals; and the Strategic Risks associate with the Budget.

The Chief Executive, Duncan Sharkey, presented the Vision for a sustainable Somerset Council; highlighting: the comparison and difference in the work to build a sustainable Council through LGR and the Financial Emergency, the need to significantly accelerate the pace and broaden the scale of transformation; the transition to a single Council and the issues identified from all five legacy Councils; the multiple factors driving the work both locally and nationally; the need for the vision to be credible, to take collective ownership and to deliver the vision ensuring sustainability; the five design principles driven by necessity; and the work on the strategy for delivery of a Council for the future.

The Leader of the Council and Lead Member for Governance and Communications, Cllr Bill Revans, invited comments from other Members present, questions and points raised included: the welcome transparency of the Council’s situation; the challenges for the Members, Officers and Somerset residents; the modest growth of Council Tax rates and the phosphate issue and impacts; the challenging situation for Somerset staff and support for their welfare, including communication management structures, informational roadshows, blogs and Q&A communication, welfare arrangements; Somerset residents engagement, communication and education regarding the vision, including the provision of services, the increased demand and fundings cuts in voluntary sector, the City, Town and Parish Councils, to understand  what a  Unitary Council does, the decisions being taken and provision of help for the Council situation through communities, keeping well and speaking to MPs to raise the voice of Local Government; the importance of the voluntary sector in supporting the Council; the S114 process, the effect on services and the Council; the funding for the memorial wood to commemorate the Fallen of the First World War; clarity on the capitalisation direction proposal; the recently held SALC meeting and the strategic viewpoint presented; the better engagement, work and strategic planning to provide resilience for Parish, Town and City Councils and the importance of Local Community Networks; the repurposing of Earmarked reserves; the local and national contributors to the financial situation; commercial investments and pooled funds; and the ongoing work regarding proposed changes savings, staffing, consultation and the detail to be provided to Members for the budget to be set in February 2024.

The Executive proceeded to vote on the recommendations, which were agreed unanimously.?? 

Following consideration of the officer report, appendices and discussion, the Executive:

a.Endorsed and recommends to December's Full Council that the Council notes that it has declared a financial emergency and endorses the range of actions and mitigations being taken forward. Furthermore, that the Council fully supports the Executive and Senior Officers to continue its discussions with the Department for Levelling Up, Housing and Communities (DLUHC) and formally requests a capitalisation direction in order to set the 2024/25 budget.

b.Approved a consultation and engagement process on Council Tax and potential service changes with the public and business sectors in line with the proposals set out in this report.

c.  Approved the re-allocation of the Earmarked Reserves as set out in Appendix 1 and receives a further update in February 2024.

d.Received the draft 2024/25 budget proposals at the January Executive including details of the savings proposals and finance settlement for the council.

e.Noted the ‘Vision for a sustainable Somerset Council’ and approves that an outline Business Case is developed for the January 2024 Executive meeting.

f.  Noted the review of the 2023/24 capital programme and the review of new bids for 2024/25 schemes with the full details being included in the report to Executive in January 2024 for approval by February 2024 Council.

ALTERNATIVE OPTIONS CONSIDERED: As set out in the officer report

REASON FOR DECISION: As set out in the officer report