Agenda item

To consider the following reports:-

·       General Fund Revenue Budget and Medium-Term Financial Plan 2024-25

·       Council Tax Setting 2024-25

 

To view all the supporting documents, including the Savings Proposals, the Cumulative Impact Assessment and the relevant Equality Impact Assessment forms, please access the web library by using this link – Supporting Documents

 

Please note: The Monitoring Officer has agreed a dispensation for all 110 councillors to enable them to fully participate Full Council in debating, setting and agreeing the Council’s budget 2024/25 (including setting council tax), Housing Revenue Account budget and the Members Allowances Scheme 2024/25.

 

Note - A recorded vote on these recommendations will be required as per the legislation.

Councillor Liz Leyshon proposed the recommendations which were seconded by Councillor Bill Revans.

 

Having been duly proposed and seconded, the Council RESOLVED to:

Revenue Budget

a)    Note the conclusions of the Council’s Section 151 Officer (Chief Finance Officer) in his Section 25 report confirming the robustness of the budget estimates and the adequacy of the level of reserves for 2024/25 and his warning about the 2025/26 financial year.

b)    Approve the additional funding for pressures requirements set out in Appendix 6.

c)     Approve the savings and income generation plans outlined in Appendix 7, considering the detailed Equalities Impact Assessments

d)    Note the MTFP Cumulative Impact Assessment in Appendix 15

e)    Approve the General Fund net revenue budget for 2024/25 of £601.775m and the individual service budgets for 2024/25 as outlined in Appendix 2.

f)      Note that in order to balance the 2024/25 budget, that revenue spend would be capitalised in accordance with the Capitalisation Directive from DLUHC of £36.9m

g)    Delegate of any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Executive Director of Resources and Corporate Services (Section 151 Officer) in consultation with the Leader of the Council. 

Reserves

h)    Note that the level of General Reserves was maintained within the risk-based assessment range of £30m minimum to £60m maximum level.

i)      Approve that £36.8m from the Medium-Term Financial Plan Support Reserve was used to help balance the 2024/25 budget.

j)      Note the overall estimated position of Earmarked Reserves outlined in Table 14 and the proposed use of reserves detailed in Appendix 10 which included the estimated use of Earmarked Reserves during the year.

Dedicated Schools Grant (DSG)

k)     Note the forecast spending on the Dedicated Schools Grant was forecast to exceed the funding provided by government by £23.4m in 2024/25 and was projected to reach a cumulative deficit of £96.2m by 31 March 2026.

l)      Note the overall Dedicated Schools Grant allocation of £533.3m for 2024/25 and breakdown by block as set out in Appendix 12.

Transformation Business Case

m)   Note the outline Business Case for transformation presented to the Executive on 7 February 2024 and that transformation was referenced in the DLUHC letter shown in Appendix 13. Transformationproposed to re-size the council so that it focused only on the unique value the council could provide and to reduce the workforce by over 1,000 (20-26%).

n)    Express concern about the ability to deliver, implications and potential outcomes of the changes planned from transformation.

o)    Called for the Executive to consider feedback on transformation from the Corporate and Resources Scrutiny Committee at the earliest opportunity.

Council Tax

p)    Approve the calculations for determining the Council Tax requirement for the year 2024/25 in accordance with the Local Government Finance Act 1992 as set out in the Council Tax Resolution in Appendix 16.

q)    Agree to continue the Council Tax precept of £14.65, included in the overall band D Council Tax for the shadow Somerset Rivers Authority (representing no increase). This resulted in a Council Tax Requirement of £3,058,900 for the Somerset Rivers Authority.

r)      Approve the Council increase the Council Tax for a band D property for Somerset Council, including the Somerset Rivers Authority Precept, by £82.14 for 2024/25, giving a band D Council Tax of £1,728.18 per year,

                        i.         The general band D Council Tax by 2.99%, £49.22, the maximum permitted without a referendum; and

                       ii.         The Adult Social Care Precept by 2.00%, £32.92.

s)     Approve a Special Expenses rate of £230,977 as detailed in Appendix 5.

t)      Approve the precept requirement of £361,071,003 (including Special Expenses Rate) £360,840,026 (excluding Special Expenses Rates).

u)    Approve the formal Council Tax resolution, in Appendix 16a, which incorporated the precepts of all the precepting bodies.

 

 

The Deputy Leader and the Lead Member for Resources and Performance, Councillor Liz Leyshon, introduced the report which was considered at the Executive meeting on 7 February 2024.

 

The report set out the proposed Revenue Budget for 2024-25 and the Council Tax based on implementing the Financial Strategy and avoiding a Section 114 Notice.

 

The 2024-25 budget could not be balanced without Exceptional Financial Support from the Department for Levelling Up, Housing and Communities (DLUHC).  A request for an additional 5% increase in the Council Tax was not approved by DLUHC, which had increased the requirement for a capitalisation direction to balance the 2024-25 budget.

 

It was very clear that under the current financial model for local government the Council was not financially sustainable and that urgent reform of the funding mechanism was required. 

 

The Council discussed the report and the following points were raised:-

·       Concern was raised on the budget and the impact it would have on the community and services provided. 

·       Councillors highlighted work being carried out on the reserves and capitalisation but that this was only buying time and not a proper solution to close the budget gap.

·       Concern was raised on using capitalisation on redundancies and the links to the Transformation Project which councillors had no detailed knowledge of yet.

·       Concern was raised on what impact the Transformation Project would have on officers and services.

·       Councillors were uncomfortable about the proposed cuts to staffing as officers were the heart of the organisation.

·       Councillors highlighted the many issues which had led to the current budget situation, many of which, the council had no control over.  Councillors further pleaded with Central Government to change the funding model used for local authorities.

·       Concern was raised on the future of Somerset Council due to the budget gap and that many councillors did not believe it was a sustainable budget.

·       Councillors requested that the Transformation Project was scrutinised properly and taken to committee at the earliest point possible.

·       Councillors queried how much risk officers were prepared to take.

·       Councillors queried how the budget could be considered to be ‘balanced’ when it had not been based on the impact caused by services being cut.

The Leader of the Council wanted to avoid issuing a Section 114 Notice and believed that the Executive had done everything they could to prevent this.  The only other option would have been to raise the Council Tax, but this had been rejected by DLUHC.

·       Concern was raised on the potential costs that had been pushed onto Parish Councils and the impact this would have on smaller Parish Councils who were not able to raise their precepts to cover the cost of services.

The Leader of the Council thanked all the City, Town and Parish Councils for their work on their Council Tax Precepts and the Devolution Project and advised that he would continue to consult with them and the local communities to continue to work together going forward.

·       Councillors highlighted the cumulative impact assessment for the Medium-Term Financial Plan and that it had not included any risk to Parish Councils.

The Deputy Leader of the Council praised the Parish Councils for their input and knowledge as some of the best questioning on the budget process had been received from the Parish Councils especially at the meeting held by the Somerset Association for Local Councils.  She also advised that none of the Parish Councils would be forced to take on any services, it would be their choice through the Devolution Project.

·       Concern was raised on funding for Adult Social Care and that a recent Panorama programme had raised the issue but that it had never been resolved by Central Government.

·       Councillors queried the proposed savings being made to the Highways Services and raised concern due to recent periods of flooding and what contingencies had been put in place for this.

The Deputy Leader of the Council advised that the savings proposals and cumulative impact assessments linked to CAP03 for Highways Services had been removed after debate at the Executive meeting held on 7 February 2024 and would be deferred for a year to allow for discussions to take place with Local Community Networks and Parish Councils.

·       Councillors requested clearer communications on the increase to Council Tax, as some residents thought it only applied to band D properties because that was the example used in most communications.

The Deputy Leader of the Council highlighted that Parish Councils had done a great job in explaining Council Tax payments to their local residents.

·       Councillors asked for clarification on how the costs had been calculated for the CCTV service, as they were aware that both Bridgwater and Taunton Town Councils had committed to paying towards the cost.

The Lead Member for Communities, Housing and Culture explained the cost calculations and that they had asked for contributions from all the Parish Councils who would have access to CCTV in their area.

·       Concern was raised on the proposed cuts on the Transport Services and the impact this would have on local residents.

·       Concern was raised on the reduction in support given to the Citizens Advice and the Library service.

The Lead Member for Communities, Housing and Culture agreed that they both gave a good service to the community but sadly they had to cut the mobile library service and the support given to Citizens Advice was on a 3-year deal.

·       Councillors requested clarification on the figures included in appendix 10 for cycle paths.

The Lead Member for Economic Development, Planning and Assets shared their enthusiasm for Active Travel, however, the figures detailed were for a committed project and not for general spend.

·       Councillors were happy to see that the budget proposals and cumulative impact assessment for CAP010 associated with Household Waste Recycling Centres was being reviewed.

·       Councillors highlighted that they had been elected to ensure that taxpayers money was spent in the best way possible.

·       Concern was raised on the budget proposals and cumulative impact assessments relating to ADS004 and ADS009 which related to Adult Services, including mental health services.

The Executive Director for Adult Services thanked councillors for raising their concerns.  She advised that there was no guarantee that the savings proposed would not impact on the services, but that officers were working closely with partner organisations to ensure services would continue to be provided.

·       Councillors thanked officers for all their hard work on the budget proposals, equality impact assessments and cumulative impact assessments.

·       Councillors also thanked the Executive for ensuring the budget proposals were taken through the scrutiny process prior to Executive and Full Council.

 

Councillor Dave Mansell proposed an additional recommendation to the report as follows:-

Transformation Business Case

m)      Note the outline Business Case for transformation presented to the Executive on 7 February 2024 and that transformation was referenced in the DLUHC letter shown in Appendix 13. Transformationproposed to re-size the council so that it focused only on the unique value the council could provide and to reduce the workforce by over 1,000 (20-26%).

n)       Express concern about the ability to deliver, implications and potential outcomes of the changes planned from transformation.

o)       Called for the Executive to consider feedback on transformation from the Corporate and Resources Scrutiny Committee at the earliest opportunity.

Councillors Liz Leyshon and Bill Revans accepted the recommendation as the proposer and seconder and it was added as recommendations m), n) and o) to the report.

 

In accordance with Standing Order 18(2)(i), the Chair called for a recorded vote to be taken and recorded in the minutes.

 

Councillor Liz Leyshon proposed the recommendations which were seconded by Councillor Bill Revans.  A vote followed and the recommendations were agreed with fifty-two for, nine against and thirty-one abstaining, votes cast:

 

Those voting FOR: Councillors John Bailey, Jason Baker, Mike Best, Adam Boyden, Theo Butt Philip, Simon Carswell, Nicola Clark, Simon Coles, Nick Cottle, Dixie Darch, Hugh Davies, Tom Deakin, Sarah Dyke, Ben Ferguson, Pauline Ham, Ross Henley, Mike Hewitson, Edric Hobbs, Henry Hobhouse, Dawn Johnson, Jenny Kenton, Tim Kerley, Marcus Kravis, Liz Leyshon, Tony Lock, Martin Lovell, Matthew Martin, Kevin Messenger, Tessa Munt, Mike Murphy, Graham Oakes, Oliver Patrick, Emily Pearlstone, Derek Perry, Evie Potts-Jones, Hazel Prior-Sankey, Bill Revans, Tony Robbins, Jo Roundell Greene, Peter Seib, Heather Shearer, Fran Smith, Federica Smith-Roberts, Jeny Snell, Mike Stanton, Andy Sully, Claire Sully, Sarah Wakefield, Richard Wilkins, Alex Wiltshire, David Woan and Ros Wyke.

 

Those voting AGAINST: Councillors Steve Ashton, Marcus Barr, Hilary Bruce, Andrew Govier, Bente Height, Kathy Pearce, Leigh Redman, Brian Smedley and Gwil Wren.

 

Those ABSTAINING from voting:  Councillors Suria Aujla, Brian Bolt, Alan Bradford, Norman Cavill, Mandy Chilcott, Barry Clarke, Peter Clayton, Shane Collins, Dawn Denton, Martin Dimery, Michael Dunk, Bob Filmer, David Fothergill, Tony Grimes, Andy Hadley, Philip Ham, Mark Healey, John Hunt, Christine Lawrence, David Mansell, Frances Nicholson, Sue Osborne, Connor Payne, Tom Power, Steven Pugsley, Faye Purbrick, Diogo Rodrigues, Gill Slocombe, Lucy Trimnell, Martin Wale and Rosemary Woods.

 

Having been duly proposed and seconded, the Council RESOLVED to:

Revenue Budget

a)    Note the conclusions of the Council’s Section 151 Officer (Chief Finance Officer) in his Section 25 report confirming the robustness of the budget estimates and the adequacy of the level of reserves for 2024/25 and his warning about the 2025/26 financial year.

b)    Approve the additional funding for pressures requirements set out in Appendix 6.

c)     Approve the savings and income generation plans outlined in Appendix 7, considering the detailed Equalities Impact Assessments

d)    Note the MTFP Cumulative Impact Assessment in Appendix 15

e)    Approve the General Fund net revenue budget for 2024/25 of £601.775m and the individual service budgets for 2024/25 as outlined in Appendix 2.

f)      Note that in order to balance the 2024/25 budget, that revenue spend would be capitalised in accordance with the Capitalisation Directive from DLUHC of £36.9m

g)    Delegate of any amendments within the final Government Financial Settlement and the final Business Rates amendments to the Executive Director of Resources and Corporate Services (Section 151 Officer) in consultation with the Leader of the Council. 

Reserves

h)    Note that the level of General Reserves was maintained within the risk-based assessment range of £30m minimum to £60m maximum level.

i)      Approve that £36.8m from the Medium-Term Financial Plan Support Reserve was used to help balance the 2024/25 budget.

j)      Note the overall estimated position of Earmarked Reserves outlined in Table 14 and the proposed use of reserves detailed in Appendix 10 which included the estimated use of Earmarked Reserves during the year.

Dedicated Schools Grant (DSG)

k)     Note the forecast spending on the Dedicated Schools Grant was forecast to exceed the funding provided by government by £23.4m in 2024/25 and was projected to reach a cumulative deficit of £96.2m by 31 March 2026.

l)      Note the overall Dedicated Schools Grant allocation of £533.3m for 2024/25 and breakdown by block as set out in Appendix 12.

Transformation Business Case

m)   Note the outline Business Case for transformation presented to the Executive on 7 February 2024 and that transformation was referenced in the DLUHC letter shown in Appendix 13. Transformationproposed to re-size the council so that it focused only on the unique value the council could provide and to reduce the workforce by over 1,000 (20-26%).

n)    Express concern about the ability to deliver, implications and potential outcomes of the changes planned from transformation.

o)    Called for the Executive to consider feedback on transformation from the Corporate and Resources Scrutiny Committee at the earliest opportunity.

Council Tax

p)    Approve the calculations for determining the Council Tax requirement for the year 2024/25 in accordance with the Local Government Finance Act 1992 as set out in the Council Tax Resolution in Appendix 16.

q)    Agree to continue the Council Tax precept of £14.65, included in the overall band D Council Tax for the shadow Somerset Rivers Authority (representing no increase). This resulted in a Council Tax Requirement of £3,058,900 for the Somerset Rivers Authority.

r)      Approve the Council increase the Council Tax for a band D property for Somerset Council, including the Somerset Rivers Authority Precept, by £82.14 for 2024/25, giving a band D Council Tax of £1,728.18 per year,

                        i.         The general band D Council Tax by 2.99%, £49.22, the maximum permitted without a referendum; and

                       ii.         The Adult Social Care Precept by 2.00%, £32.92.

s)     Approve a Special Expenses rate of £230,977 as detailed in Appendix 5.

t)      Approve the precept requirement of £361,071,003 (including Special Expenses Rate) £360,840,026 (excluding Special Expenses Rates).

u)    Approve the formal Council Tax resolution, in Appendix 16a, which incorporated the precepts of all the precepting bodies.