To approve the 2020/21 budget and associated medium term financial strategy and treasury management strategy.

Council considered a report from the Leader to set the 2020/21 budget and update the medium term financial strategy and treasury management strategy.

The cabinet member finance and corporate services introduced and moved the budget and explained that the administration had inherited a sound financial position and it was possible to set a balanced budget. The council tax precept increase was at a lower rate than it had been in the previous two years and the budget supported the priorities contained in the new county plan. The budget contained support for local business and education, including NMiTE, and incorporated plans to address challenges including the rising cost of services. The budget contained investment in social care for children and adults and the Talk Community initiative. The budget had been shaped by the public with extensive consultation and had been presented to each of the scrutiny committees twice.

The Leader seconded the budget and explained that the precept increase was prudent to enlarge the council tax base but it was regrettable that it was at a rate higher than inflation. There was a pressure on the budget from the increasing cost of looked after children. Headroom existed in the budget to support projects such as the superhubs and to address the climate emergency. The new homes bonus was being utilised to address the phosphate levels and support house building.

Councillor Jonathan Lester expressed support for the provision in the budget for key services and in particular the investment in legal and children’s services to enhance safeguarding. He expressed concern at the precept level. The strong financial position of the council undermined the proposal for a precept above the level of inflation.

Councillor John Hardwick explained that there had been full and thorough consultation on the budget. The proposals in the budget demonstrated the effective working arrangements that had been established by the alliance and reflected the priorities expressed by the electorate.

Councillor Alan Seldon explained that the budget was the culmination of significant work by the executive and reflected the manifesto commitments of It’s Our County. The proposals in the budget responded to the climate emergency and contained modern day thinking to address issues such as congestion in Hereford.  

Councillor Polly Andrews explained that the comments of her political group would be outlined during the debate.

Councillor Ellie Chowns explained that the budget was set in the context of: a lack of central government funding; the pressure on adult social care services caused by the demography of Herefordshire; and the increased need of children’s services caused by a lack of funding. Long term investment in services was proposed in the budget and the council tax precept was how the public collectively funded local services to protect vulnerable residents.

Councillor Bernard Hunt explained that in considering the proposed precept increase the demands on the resources of the council needed to be considered.

In discussion the following principal points were raised on the Cabinet’s budget:

·         The lobbying of central government was raised and  ...  view the full minutes text for item 43