To receive the report and to consider any recommendations to Council arising from the meetings held on 17th and 24th February, 2005.

Before calling on the Leader of the Council, Councillor R.J. Phillips, to present the report of Cabinet, the Chairman advised that the Revenue Budget and Council Tax for 2005/06 would be debated at page 12 of the agenda.  If any Member wished to move an amendment, they should do so once the Leader had proposed the Council Tax and Budget.  Once the Council had agreed the whole of the Cabinet report, it would move to item 10 of the agenda to set the Council Tax and Revenue Budget for 2005/06 formally in accordance with the legislation.

The Leader of the Council, Councillor R.J. Phillips, presented the report of the meetings of Cabinet held on 17th and 24th February, 2005.

In relation to item 1.1 - Corporate Plan 2005-2008 - Councillor Phillips reminded Council that this was an important document which sets out the Council's priorities for the next three years and how it intends to achieve them. In response to a query about the lack of targets relating to drug abuse and bullying in schools he stated that the Council could work with the schools to set these targets.

In relation to item 1.2 - Capital Programme 2005/06 - the Leader said that some of this money would help achieve the priorities in the Corporate Plan.  He proposed that the supported borrowing for Education, Transport and Housing be distributed in accordance with government allocations.  He advised of the prudential borrowing allocations from 2004/05 which had ongoing commitments in 2005/06 and the additional schemes recommended for approval in 2005/06.  He spoke, in particular, of the need for investment in the Crematorium, the contact centre (Info by Phone) and the proposed enhancements for Hereford City Centre. 

In response to a query about the provisional nature of the proposed funding for enhancements to Hereford City Centre, he stated that this was part of an overall funding package and the Council would work towards the best interests of the City and the County.  In response to a comment that £2 million could be needed to improve the Buttermarket alone and that £10-£15 million would be required to bring Hereford City Centre up to standard he invited suggestions as to how that money could be raised.

In relation to item 1.3 Revenue Budget and Council Tax 2005/06 - Councillor Phillips reminded Council that it needed to achieve savings of around £5 million and that the proposed budget was recommended by the Cabinet following consultation with the Budget Panel which included representatives from all the political parties and the trades unions.  It had also taken account of proposals from the Strategic Monitoring Committee.  He proposed a budget of £184,889,000 equivalent to a 4.31% rise in Council Tax, the lowest ever set by the Council.

In response to a comment that the 4.31% increase was to make up for the previous year's Council Tax capping and rebilling, and a query about the impact this would have on the population, many of whom were on low or fixed incomes, Councillor Phillips referred to the content of the capping decision which led to an amendment of £253,000 to the Council's budget.  The Leader indicated that whilst the Council had been capped for an 'overspend' of £253,000 the Government had had no hesitation in making a retrospective amendment of £300,000 in the current settlement to reflect alleged discrepancies in the 2001 Census Data.  He was also aware of the number of people on low or fixed income, including pensioners.

In response to a query about the relocation of Tourist Information Centres (TICs) and whether the process would be scrutinised to make sure it was truly effective, the Leader explained that many Focus Groups, including the Tourism Group, had been consulted on the budget proposals and they were received very favourably.  He said £450,000 was spent on tourism, half of that on TICs.  He confirmed that the TICs would retain a presence in the market towns and that it would be necessary to review their stock, leases and ensure that properties were fit for purpose.

The Leader of the Liberal Democrat Group said that government settlements were usually more generous prior to a general election.  He said that the Council had no option but to set the budget at this level to avoid capping.  He was worried that there was little flexibility in the budget and took issue on a number of proposals such as increased charges for green waste bags, car parking charges at Queenswood, and increases to the crematorium and burial charges.  He also urged a closer look at the Herefordshire Partnership and was concerned that the Council had no control over the number of people requiring Social Care.  Although he supported the level of the council tax rise, he warned that the Chancellor might not be so generous next year.  The Leader responded by saying that the budget concentrated, not on one year but on a three-year period.  He said there would be a £3 million investment in the crematorium.  He agreed that the costs of the Herefordshire Partnership would need to be closely examined.  He also shared Councillor James' concerns about the demands on the Social Care budget in light of the County's population profile.  He said that vulnerable people were owed a sustained level of services and that challenging discussions would be taking place in order to come to terms with this issue.

He also advised that there would be a seminar on Procurement and ICT and the Council's Service Improvement Plan.  He urged all Members to attend the seminar which would be held sometime in April.

In response to a question from Councillor Mrs. Lloyd-Hayes he agreed to provide a written response about the pavilion which had been burnt down at College Hill and whether it would be rebuilt and available for use by young people in the same area.

In response to a query about the Council's presence at the Three Counties Show, he said he would always advertise the County but could not justify £45,000 plus officer time except possibly in the year that Herefordshire hosted the Show.

Council voted on the Council Tax and Revenue Budget 2005/06 as follows:

For - 40

Against - 0

Abstentions - 14

In relation to item 1.5 Draft Crime, Disorder and Drugs Reduction Strategy 2005 - 08 - The Leader advised that it would not be possible for the Council to approve the Strategy as some of the figures were still not available.  He hoped that the final document would be ready for approval at the May meeting.

In relation to item 7.1(i) - Herefordshire Council Support to the Community and Voluntary Sector - in response to a question the Leader confirmed that, now that the Budget had been set, any changes to the Council's policy on support to the voluntary sector would be put in place as soon as was expedient.

In relation to item 7.1(ii) - Courtyard Review - In response to a comment from the Chairman of the Review Panel, the Leader confirmed that the Panel would be invited to continue to be involved in scrutinising the Courtyard's operation and financial position.

In relation to item 13.1(ii) Developing Services to People with Learning Disabilities - The Cabinet Member (Social Care and Strategic Housing) was unable to give any assurances about respite care facilities at this early stage. 

RESOLVED:  That the reports from the meetings of Cabinet held on 17th and 24th February, 2005 be received and the recommendations set out below be adopted:

That    (a)        the Corporate Plan be approved on the basis that the Local Public Service Agreement (LPSA) 2G performance indicators and targets will be included as and when they are agreed with central government;

(b)the supported borrowing for Education, Transport and Housing be distributed in accordance with government allocations (Appendix 1);

(c)               the future years funding commitments resulting from 2004/05 allocations of Prudential Borrowing, as stated in Appendix 2, be reaffirmed;

(d)              a capital sum of £2 million be provisionally allocated to the refurbishment of Hereford City Centre and the County Treasurer be asked to make the necessary additional provision within the Revenue Budget and within the Prudential Borrowing requirements;

(e)              Prudential Borrowing for 2005/06, for 2006/07 and for 2007/08 be approved to meet projects as set out in Appendix 3;

(f)the Revenue Budget for 2005/06 be set at £184,889,000 (representing the figure reflected in the budget report to Cabinet plus a further £200,000 being the capital financing costs associated with the Hereford City Centre improvements proposal);

(g)the consequential Council Tax Band D figure for 2005/06 be £996.94 representing a 4.31% increase as detailed in the Council Tax Resolution 2005/06 set out at Minute 73;

(h)the Prudential Indicators detailed in Appendix 4 which includes the projected Capital programme, subject to confirmation of the inclusion of £2 million for refurbishment of Hereford City Centre, be approved;

(i)the Treasury Management Strategy in Appendix 5 be approved;

(j)the borrowing limits outlined in Appendix 5 be approved; and

(k)that the Crime, Disorder, and Drugs Reduction Strategy 2005-08 be finalised and re-submitted to Council in May for final approval.