To seek the views of the general scrutiny committee on the budget proposals for 2022/23 following the announcement of the provisional financial settlement.

Update, 25 January 2022:

The attached document (Appendix I) provides the committee with the three year public health grant funded budget details.

The Chairperson opened this item by reminding members of the Committee of the recommendations that had been made at the initial Budget meeting in December and the responses that had been supplied (as appended to the minutes). During discussion of these the following key points were raised:

•        Concerns were voiced that 135 responses to the budget consultation was not a large enough sample to infer any support for the precept increase, and that the consultation needed to be a more meaningful process if it was to be used in any way as a mandate for decisions.

•        In contrast, it could be viewed that a lack of response was a tacit approval of the 2.99% rise. Had it been higher, presumably this would have elicited a greater response.

•        The Cabinet Member for Finance reminded Members that each percentage rise in Council Tax delivered £1.2m of revenue for the Council, enabling them to maintain services. Consultation responses had shown that most people would prefer this rise rather than a cut in services.

•        Although mindful of the statutory obligations that required spend in the other directorates, Councillors were not satisfied that the 16% of the total budget which was spent on the Economy and Place directorate was enough, and requested that some comparisons with appropriate comparator authorities be made and analysed.

The Chief Finance Officer then gave a presentation (Appendix A in the agenda pack) and sought the views of the General Scrutiny Committee on the budget proposals for 2022/23 following the announcement of the provisional financial settlement. 

During the debate the following key points were raised:

•        Councillors found the slide taken from the Resolution Foundation and titled “Impact of Budget on different income groups” difficult to interpret.

•        It would be difficult to unpick spend across the Council to identify exactly where the Rural Services Delivery Grant (RSDG) had been, or would be, spent as it was used as a revenue support grant. The Portfolio Holder for Finance offered refuse collection as an example of where the RSDG supported rural counties as it was recognised that it was more expensive to collect refuse from isolated rural properties covering a large area compared to more densely populated areas.

•        The Chief Finance Officer reassured Councillors however that the conditions of all grants received were reviewed to check if there were restrictions or specific areas that the monies had to be spent on. An updated paper on proposed investment funded by capital grants would be presented at Cabinet the following week Agenda for Cabinet on Monday 31 January 2022, 6.30 pm - Herefordshire Council

•        The recommendations made by the Adults and Wellbeing, and Children and Young People Scrutiny Committees, as outlined below, were discussed with the Committee. The Chair of the Adults and Wellbeing Scrutiny Committee highlighted that her Committee had been at a disadvantage relative to the Children and Young People Scrutiny Committee as a base budget had not been provided for the meeting, and therefore comments  ...  view the full minutes text for item 53