Decision details

To consider the recommendation to the County Council for the revenue budget, precept and council tax for 2018/19 for the County Council to determine.

Cabinet considered the report of the Director of Corporate Resources regarding the revenue budget and precept 2018/19.

In introducing the report, the Chairman confirmed his reluctance to see increases in Council Tax and highlighted the requirement for the Council to set a balanced budget. It was noted that if the proposed increases to the precept were agreed, this would still leave Council Tax lower than had it increased at the rate of inflation since 2010.

The technical detail of the report was presented by the Director of Corporate Resources, who set out the challenges faced by all departments to maintain service provision within budget requirements. With this in mind, she explained the resources allocated to Children’s Services to support service delivery. Other areas of the report were highlighted, including regarding treasury management, T19 savings proposals and the 2017/18 third quarter monitoring position. The recommendations to Cabinet relating to each respective section of the report were drawn to Members’ attention.

With the agreement of the Chairman, Councillor House addressed the Cabinet:

Councillor House welcomed the news that government grants had been awarded to Hampshire projects, but felt that the overall budgetary direction was of managing decline. He intimated that if the current precept increases were to be agreed, this would amount to a 22 percent increase in Council Tax in four years. The consistency of the policy regarding bus passes, the household waste recycling centres and community transport was challenged, as were the strategies to meet need in the areas of children looked after and Adult Social Care. Councillor House suggested that if the cause of a 22 percent increase in Council Tax lay with government, the Hampshire MPs should be doing more to achieve a fairer outcome for the County.

Cabinet discussed the report, taking the comments from Councillor House into consideration. It was confirmed that the proposed budget was responding to pressures caused by the changing needs of society and not to manage decline. It was clarified that the decisions made at previous Cabinet meetings were to explore ways to protect services and therefore the extra council tax flexibility and new savings that had been identified to help withdraw savings in areas such as community transport, household waste and bus passes were welcomed. Members noted the success of the Council’s investment strategy, to achieve a high yield at relatively low risk, recognising the benefit of a cautious and long term approach.

The additional money arising from the social care precept was welcomed and it was noted that over two years this amounted to £30 million, which served to secure service provision and enable a comprehensive transformation programme. The importance of being able to meet demand in Children’s Services through the use of contingencies was recognised as a means to keep children safe, whilst a longer term strategy of working with families to reduce demand on the service could take effect.

The Chairman thanked everyone who had contributed to the preparation of the budget report, in particular on the focus on the priorities of forward planning, of providing high quality services and of low taxation.

The recommendations in the report were proposed and agreed. The decision record is attached.