To approve the 2019/20 budget and associated medium term financial strategy and treasury management strategy.

Council considered the report setting the 2019/20 budget and updating the medium term financial strategy (MTFS) and treasury management strategy.

The Chairman outlined the procedure to be followed during the budget debate and the time limits for speaking.

Councillor EPJ Harvey raised a point of order. The administration’s budget that Council was considering had not been approved by cabinet. Appendix 7 to the budget report had not be considered or approved at the cabinet meeting on 31 January. The proposals contained in appendix 7 were an amendment to the cabinet’s budget and not clarifications. The changes should follow the process for amendments set out in the budget and policy framework rules. The chief finance officer had explained to the It’s Our County group that it could not change its alternative budget after consideration by the scrutiny committees and for the administration to make changes to its budget following the cabinet meeting on 31 January was unconstitutional and undermined the authority of cabinet to make recommendations to Council. The Chairman was asked to withdraw appendix 7 and require that it be submitted as an amendment. 

The Chairman explained that the detail in appendix 7 was clarification provided by the cabinet concerning the allocation of the £2 million additional funding sources in the 2019/20 budget, and followed a request made by a group leader at the cabinet meeting for additional detail. The Chairman was content with the manner in which the budget had been submitted; the £2 million had been in the budget agreed by cabinet and appendix 7 provided detail regarding its allocation.

The deputy leader introduced the budget and made the principal points below:

·       Over the previous 10 years the Council had achieved significant savings which stood at £90 million since 2010. Over this period of time the revenue support grant from central government had decreased from 60.1 million to 0.6 million.

·       The budget included savings of £3.9 million and a council tax increase of 4.9% which included 2% to address adult social care pressures. The band D charge was above the CPI but below RPI measures.

·       The budget setting process had rebased the entire budget and had taken into account policy changes and population growth. The process had taken into account those funding pressures faced by the Council and the savings required over the period of the MTFS.

·       The recommendation in the report was to approve the MTFS and the treasury management strategy, the chief finance officer had confirmed that he was content that the approach of the Council was robust.

·       The future fair funding review and the business rates retention scheme were two elements of uncertainty in the MTFS. The rural nature of the county and the relatively low business rate levels meant that help would be required to meet obligations such as public health and lobbying of the local MPs was taking place to ensure that government expedited the review of local government funding.

·       Appendix 7 set out details of the allocation of additional funding for 2019/20.  ...  view the full minutes text for item 47