Agenda item

Cllr Theo Butt-Philip (Lead Member for Transformation and Human Resources) introduced himself and provided a brief overview and update on the financial position of Somerset Council.

He noted the authority needed to reduce spending as there was a projected overspend in the current year and pressure to close a forecast £100million budget gap for the coming financial year. He noted the Leader had asked parishes to look at some of the non-statutory services which may get reduced or cease and for parishes to consider if they may wish to take on some of those services at a local level if valued in their parish. Somerset Council would need to seriously look at what services it could continue to provide into the future, and there were some difficult decisions to be made.

In more recent weeks the Council had been able to publish some savings options, but there would be no decisions made until the meeting of Full Council on 20 February 2024. He explained the Council legally has to set a balanced budget each year and it also legally had to provide a certain level of care. However there were many existing services which the authority was not under obligation to provide and some of these may need to stop in the future.

During a question and answer session, Cllr Theo Butt Philip (Lead Member for Transformation and Human Resources), Kate Hellard (Service Manager LCNs) and Cllr Sarah Wakefield (Associate Lead Member for Commercial Investment & Risk) provided some responses to points of detail. A summary of some of the points and responses are provided below:

·         Understand that restructuring is underway – what’s happening and how will this affect the LCNs?

Internal consultation on the restructuring of the Partnerships and Localities service was currently taking place and due to close shortly. As a service we are looking at how can deliver savings, and going forwards it was possible that the LCNs may be funded under the role of Public Health. The role of the LCNs was unlikely to fundamentally change in the near future and a good lead in time would be needed before doing a major review of their purpose and geography.

·         Regarding the budget savings – what timeframes are we working to in the near future?

The 2024-25 budget will be considered, agreed and set at the meeting of Full Council on 20 February 2024, but assurances were also needed from central government regarding the raised Council Tax Increase and capitalisation direction no later than March.

·         What is the plan if government don’t agree to the 10% increase in Council Tax or the capitalisation direction request?

Need government to agree to at least one of the options if not both, but in theory if they don’t agree then a Section 114 notice would be declared. The government would then likely put in Commissioners who well tell us what to do to make the budget balance, and its likely we would be told to sell more assets.

·         My parish, which is very small, is setting its precept tomorrow. Believe Kier (contractor) will be setting a parish tariff / price list – is there any more information about this? Also regarding selling and disposal of assets – will there be any options for transfers of Somerset Council assets?

Understand that Kier are doing a price list for parishes but this may not be available for another month or two. All Somerset Council assets are being reviewed individually and some will need to be sold.

·         Is there an option for a Parish Council to increase its precept and then give the money to Somerset Council to continue delivering a specific service to / within a parish?.

Different models for service delivery are being looked at including a steward type model e.g Highway Stewards (Highway Stewards were explained in more detail at item 7 on the agenda).

·         The social care that Somerset Council provides – is that just for Somerset people? – What happens if a Dorset resident receives care in a Somerset Care Home?

Care funded by Somerset Council is for Somerset residents. If a Dorset resident is placed in a Somerset Care Home then in theory it would be funded by Dorset Council.

·         Without the Highways price list for parishes from Kier and details of other service charges it is very difficult for clerks as they don’t know any costs. Are there any suggested ways forward in the interim?

Acknowledged and noted. Could look at the list of suggested savings as circulated by the Leader and see which, if any, are services which are most valued locally and could possibly be provided by the parish in the future. A parish could increase its precept and set money aside in case required for something going forward if wished. Unfortunately Somerset Council is not legally required to provide some services valued by parishes.

·         Just to say our parish has managed to achieve some projects regarding hedges and ditches at a cheaper cost and quicker than could be delivered by Highways.

Acknowledged and noted.

·         Have any predictions been made about if Somerset Council is allowed to increase Council Tax by 10% how many years would it be before the Council might break even?

Somerset Council will need to be a very different organisation going forwards with fewer staff, and to carefully consider what it can afford going forwards. Personal thoughts are unless something is done about the cost of care then local government light collapse in the future – think something will done either by how local government is funded or revising the list of statutory services to be provided by councils. Parishes could raise precepts to deliver projects in a more local way.

·         A parish could decide to take on a lot, a neighbouring parish may decide to do nothing, or several parishes could act collectively or as together as this LCN. However it is difficult for parishes to know what to do.

Comment noted. Acknowledge may be uneven service across Somerset going forwards.

·         Parishes need to look after parish money, and our parish are careful to make sure don’t spend on projects or services that should be delivered by Somerset Council. What is the target? – where do Somerset Council want to be in terms of budget and services?

Somerset Council is required to set a balanced budget each year. The authority needs to rationalise its assets and buildings. The Government are making the authority sell assets that were purchased for income.

·         What is the worst-case scenario – what does it look like? What will communities do?

The situation at Birmingham is probably an example of worst-case scenario – looking at selling many of its assets to see what funding can be raised, and commissioners sent into the authority for five years. In Somerset, there can be discussions with communities about statutory minimums for service delivery. For example – requirement for provision of a library service but not necessarily having to provide a library building.

The Chairman thanked Cllr Butt-Philip for attending the meeting and answering questions.