To agree the draft 2021/22 budget and associated medium term financial strategy and treasury management strategy for recommendation to Council on 12 February.

The cabinet member finance and corporate services introduced the report. The unexpected challenges presented by 2020 were highlighted and it was noted that the pandemic had resulted in an uplift to service delivery costs and a loss of income to the council. Government support had been received which meant that with a council tax increase of 4.99% operational savings of just over £11m were required. Details of proposed savings were set out in the report and were felt to be challenging but deliverable.

Cabinet members noted that:

·        the priorities had been influenced by public and stakeholder consultation;

·        responses to the recommendations made by the scrutiny committees were set out in the report;

·        difficult choices had had to be made and a great deal of work had gone into the final budget proposals;

·        the Section 151 officer was satisfied that the position set out in the report represented a legal, balanced budget;

·        there was continued pressure on adult social care services;

·        the ‘till receipt’ showed how much was spent on those essential services that most residents would not see;

·        support from central government to meet mounting pressures was important.

The pressures in the children and families directorate were discussed and the improvement work that was taking place was recognised. The cabinet member children and families reported that 9 out of 10 councils were expecting to overspend on their children’s services departments. 

The chairpersons of the scrutiny committees commented on the points raised and recommendations made by their respective committees.

The adults and wellbeing scrutiny committee had met for a second time to consider alternative savings proposals for the adults’ directorate and were satisfied with the principle of the proposed changes.

The children and young people scrutiny committee recognised the progress achieved over the previous couple of years. The chair of the committee highlighted that the information given at the scrutiny meeting regarding the recruitment of foster carers was confusing and had it been made clear that the figure of 30 per year included replacements for the average 13 carers who left each year the recommendation put forward might not have been made. The director for children and families apologies for any lack of clarity and undertook to provide a written response which could be shared with the members of the scrutiny committee.

The general scrutiny committee had expressed doubts that reducing the hours at the waste facilities was feasible as there were reports that the booking system had deterred some people from using the facilities. The cabinet member commissioning, procurement and assets commented that a great deal of positive feedback had been received from residents and staff regarding the booking system.

Group leaders were invited to present the views and queries from their respective groups. It was noted that:

·        these were difficult times to be creating a budget;

·        there was no current freeze on recruitment but managers were asked to consider all options when a vacancy arose;

·        details of the precepts to be set by the police and fire authorities had not been received but would be available by the March Council meeting when the council tax would be set;

·        final details of the local government settlement would be received some time after the 4 February, there was no suggestion of additional funds being made available at the time of the meeting;

·        there was concern about the impact of parking charges on businesses and the local economy;

·        recognition of the climate and ecological emergency was important;

·        alternative ways of communicating the details of council spending to residents were suggested.

The level of increase in council tax was challenged by some groups with a suggestion that this was difficult to justify alongside the proposed use of reserves to cancel and decapitalise major road projects. This was refuted as the money to be decapitalised had already been spent and the movement of reserves was not new money.

It was resolved that:

(a)   the following be recommended to Council;

a.     the council tax base of 68,355.22 Band D equivalents;

b.     an increase in core council tax in 2021/22 of 1.99%;

c.     an additional precept in respect of adult social care costs of 3% applied to council tax in 2021/22 resulting in a total council tax increase of 4.99%, increasing the band D charge from £1,573.77 to £1,652.30 for Herefordshire Council in 2021/22;

d.     the balanced 2021/22 revenue budget proposal totalling £161.0m, subject to any amendments approved at the meeting, specifically the net spending limits for each directorate as at appendix C;

e.     delegation to the section 151 officer of the power to make necessary changes to the budget arising from any variations in central government funding allocations via general reserves;

f.       the medium term financial strategy (MTFS) 2021-24 at appendix A be approved; and

g.     the treasury management strategy at appendix D be approved.

h.     that the growth bid to fund a Armed Forces Covenant Support Officer, attached at appendix H be approved.

(b)   the responses to scrutiny committee’s recommendations as provided in paragraph 50 be approved.