Agenda item

For the Economy, Transport and Environment Select Committee to pre-scrutinise the Economy, Transport and Environment Department 2019/20 Revenue Budget proposals for:
A) Economic Development, set out in the attached report which is due to be considered at the Decision Day of the Executive Member for Economic Development at 1.00pm on 15 January 2019.

B) Environment and Transport, set out in the attached report which is due to be considered at the Decision Day of the Executive Member for Environment and Transport at 2.00pm on 15 January 2019.

The Select Committee received a presentation from Stuart Jarvis and Sue Lapham, which covered both the Revenue Budgets for Economic Development and Environment and Transport, as well as the Proposed Capital Programme for Economy, Transport and Environment. 

Members heard that:

·         There were £140m of savings planned in the current programme;

·         One off funding was in place to meet potential gaps as a result of possible delay in cash release;

·         There would be a 2.99% council tax increase going forward;

·         In the Local Government Finance Settlement, Hampshire County Council would receive £1.8m to account for the business rate levy surplus;

·         Pilots were going ahead with Local Authorities keeping 75% and 100% of business tariffs as opposed to the current 50% and these would be reviewed at a later date;

·         There was no change to the New Homes bonus, with remained at £4.9m;

·         The Reserves Strategy was summarised with £115.7m (17.9%) being immediately available to support one-off spending;

·         The approved £15.805m savings proposals for Tt2019 were highlighted, which included parking, street lighting and agency agreements.

·         Highways maintenance and waste would continue to be a key challenge going forward as there were elements of fixed of costs that would need to be supported despite a shrinking revenue budget.

·         The Materials Recovery Facility (MRF) would be of crucial importance going forward as the costs increase, with two thirds of waste costs falling on Hampshire County Council. Discussions would continued with Government as to a sustainable way forward.

·         The Capital Programme and one-off funds available (like the Pothole Fund grant) meant that planning ahead was difficult.

·         Only the funding that had been allocated was shown and there were further bids and developer funding to come going forward.

·         Funding still existed from the Stubbington Bypass, consisting of both Capital Grant money and that from the Solent LEP.

·         There were too many variables to plan anything for Brexit, but it was appreciated that there would be an impact in some areas.

·         A short consultation was anticipated regarding MRF’s, which Hampshire County Council would respond to.

·         Food waste disposal was an area that would need further focus going forward, but there was currently spare capacity in anaerobic digesters so no issue with dealing with it locally.

Members queried as to whether money had been put aside to cover the potential risks resulting from Brexit, however it was confirmed that there were too many variables at this stage to plan effectively. Officers were, however, very conscious of potential impacts.

Members discussed the benefits of visiting an aerobic digester and MRF.

The Select Committee was informed that pooling restraints had been eased regarding 106 agreements. This was of benefit as SIL funding was released at trigger points for larger developments, which did not work as well for the County Council.

RESOLVED:

a) In regards to the revenue budget for Environment and Transport, the

Select Committee supported the recommendations being proposed to the Executive Member for Environment and Transport that the revised revenue budget for 2018/19, as set out in Appendix 1 of the attached report, and the summary revenue budget for 2019/20, as set out in Appendix 1 of the attached report, be recommended for approval by the Leader and Cabinet.

b) In regards to the revenue budget for Economic Development, the Select

Committee supported the recommendations being proposed to the Executive Member for Economic Development that the revised revenue budget for 2018/19, as set out in section 5 of the attached report, and the summary revenue budget for 2019/20, as set out in section 7 of the attached report, be recommended for approval by the Leader and Cabinet.