To seek the views of the adults and wellbeing scrutiny committee on the budget proposals for 2020/21 as they relate to the remit of the committee and on the draft corporate plan.

The chairperson explained that the three scrutiny committees would be reviewing the budget and corporate plan proposals in sequence, with meetings scheduled in November 2019 and again in January 2020.  This agenda item sought views on the proposals as they related to the remit of the adults and wellbeing scrutiny committee and the committee would make recommendations to the general scrutiny committee; the general scrutiny committee would then submit final recommendations from the three scrutiny committees to cabinet.

The chief finance officer was invited to deliver the presentation ‘Budget 20/21 and corporate priorities (2020-2024)’.  The key points are summarised below.

a.         The committee had been supplied with an early version of the proposed budget, including draft capital investment business cases, to provide the opportunity to question and challenge the work in development.

b.         An overview was provided of the council’s ‘ambition for Herefordshire’, key themes, and public engagement activity.

c.         The net revenue budget 2020/21 had been informed by the government’s spending plans, announced in September 2019, but the local government settlement would not be confirmed until after the UK parliamentary general election.  Consequently, assumptions had to be made, such as the level of rural services delivery grant.

d.         The total net budget was £156m, with an assumed 4% increase in Council Tax.

e.         An overview was provided of the base budget, known pressures (including contract inflation, fee uplift, increment, and savings) and additional pressures (looked after children, social care pool, legal structure, edge of care, and improving social care services).  The base budget requirement of £154.8m reflected that the council could balance its budget without having to make additional savings.

f.          The adults and communities directorate was commended for delivering within its budget and for making the best use of resources.

g.         The base net budget requirement for the adults and communities directorate showed a savings requirement of £0.6m and it was expected that the savings would be delivered.  Pressures of £2.7m were identified, reflecting contract inflation and demographic pressures.

h.         An overview was provided of the 2020/21 assumptions, including 4% increase in Council Tax (2% general and 2% adults social care), anticipated continuation of Improved Better Care Fund (£5.7m) and Public Health grant (£9.2m) funding, and 200 additional new homes above assumed growth in new homes.

i.           A graph showed savings achieved of £93m from 2010/11 to 2019/20.

j.           The position with earmarked reserves was outlined.

k.         Till receipts, showing charges per month for an average Band D property, for 2019/20 and 2020/21 were displayed.

Questions were invited from committee members on the budget and corporate plan in general.

The chairperson commented on the following:

·                Tribute was paid to the efforts of the council’s directors and their departments in managing the budgets in challenging financial circumstances.

·                Inconsistencies were identified in the use of terminology which could be confusing for the public, e.g. rural sparsity delivery grant (agenda page 29) and rural services delivery grant (agenda page 69).

·                Clarification was sought about the creation of a social care pooled  ...  view the full minutes text for item 26