Agenda item

To consider the recommendations of Cabinet for the Revenue Budget and Precept for 2019/20 and the Capital Programme for 2019/20 to 2021/22.

The Leader introduced the Revenue Budget and Precept for 2018/19 and the Capital Programme for the period 2019/20 to 2021/22 (Item 9 in the Minute Book), and moved the recommendations.  Councillor Mel Kendal, the Executive Member for Economic Development presented the report.

A correction was noted to Appendix 8: Treasury Management Strategy Statement, page 124 of the Agenda pack – in the table detailing a balance sheet summary and forecast, the figures for Street Lighting PFI and Waste Management Contract have been transposed, which does not change the calculations in the table nor does it impact on any other numbers in the report.

In commending the revenue budget proposals the Executive Member for Economic Development highlighted revenue items linked to the development of capital investment priorities totalling £2.9m together with approvals associated with the Manydown development site; the Reserves Strategy underpinning the provision of funding for the transformation of services; the setting aside of contingency sums for use on a one-off basis later in the year totalling £19m, and outlined the County Council’s approach to the mitigation of risk in regard to investments.

The Executive Member reported that social care services continue to be the highest risk area of the Council’s budget.  The Council’s Reserve Strategy therefore provides time for the transformation of these services to be successfully planned, developed and delivered.

In regard to the Capital Programme, the Executive Member drew Members’ attention to the recommendation for an increase to the Capital Programme of £32.869m for further infrastructure works and the by-pass at Botley.  £491.6m for the delivery of schemes over the three year period 2019/20 to 2021/22 follows a revised Programme of £328.4m for 2018/19 providing a boost to the local economy, which represents a significant investment in Hampshire’s infrastructure.

In conclusion, the Executive Member reported that the Revenue Budget and the Capital Programme together enables the continuing provision of essential services to residents, and a stable platform to consider forthcoming challenges to 2021.

The full opening debate speech of the Executive Member for Economic Development is appended to these Minutes.

Opposition Group Leaders responded to the proposals. During the course of a full debate, views in support of, or raising concern, about the proposals were expressed. No Amendments were moved therefore the recommendations were put to the vote in accordance with Standing Order 22.2, the outcome of which was recorded as follows:

FOR - 51

Councillors: John Bennison, Fred Birkett, Ray Bolton, Jackie Branson, Ziliah Brooks, Graham Burgess, Adam Carew, Fran Carpenter, Christopher Carter, Roz Chadd, Rod Cooper, Roland Dibbs, Peter Edgar, Keith Evans, Liz Fairhurst, Steve Forster, Andrew Gibson, Jonathan Glen, Judith Grajewski, Marge Harvey, Pal Hayre, Edward Heron, Gary Hughes, Rob Humby, Roger Hexstep, Andrew Joy, David Keast, Mark Kemp-Gee, Mel Kendal, Peter Latham, Keith Mans, Alexis McEvoy, Anna McNair Scott, Derek Mellor, Floss Mitchell, Rob Mocatta, Kirsty North, Russell Oppenheimer, Neville Penman, Roy Perry, Lance Quantrill, Stephen Reid, Patricia Stallard, Robert Taylor, Tom Thacker, Michael Thierry, Rhydian Vaughan, Jan Warwick, Michael White, Bill Withers, Seán Woodward

AGAINST - 19

Councillors: Peter Chegwyn, Daniel Clarke, Adrian Collett, Mark Cooper, Tonia Craig, Alan Dowden, Jane Frankum, David Harrison, Dominic Hiscock, Keith House, Wayne Irish, Gavin James, Jackie Porter, Roger Price, David Simpson, Bruce Tennent, Mike Thornton, Malcolm Wade, Michael Westbrook,

ABSTAIN - 1

Councillor: Elaine Still.

RESOLVED:

A.           REVENUE BUDGET AND PRECEPT 2019/20

That the County Council agree that:

a)    The Treasurer’s report under Section 25 of the Local Government Act 2003 (Appendix 6 to Annex A) be taken into account when the Council determines the budget and precept for 2019/20.

b)    The Revised Budget for 2018/19 set out in Appendix 1 to Annex A be approved.

c)    The Revenue Budget for 2019/20 as set out in Annex 1 to this Part I report be approved.

d)    Funding for one off revenue priorities linked to the development of capital investment totalling £2.9m as set out in paragraphs 5.26 to 5.46 of Annex A be approved.

e)    Funding for the future years cost of the Manydown development of up to £4.2m be approved to be met from general contingencies.

f)     Loan funding of up to £600,000 a year from 2018/19 to 2026/27 be made available to meet the running costs of the Manydown Garden Communities LLP to be met from general contingencies.

g)    The total net budget requirement for the general expenses of the County Council for the year beginning 1 April 2019, be £759,056,133.

h)   The council tax requirement for the County Council for the year beginning 1 April 2019, be £635,828,608.

i)     The County Council’s band D council tax for the year beginning 1 April 2019 be £1,236.87, an increase of 2.99%.

j)      The County Council’s council tax for the year beginning 1 April 2019 for properties in each tax band be:

k)    Precepts be issued totalling £635,828,608 on the billing authorities in Hampshire, requiring the payment in such instalments and on such date set by them previously notified to the County Council, in proportion to the tax base of each billing authority’s area as determined by them and as set out overleaf:

l)     The Capital & Investment Strategy for 2019/20 (and the remainder of 2018/19) as set out in Appendix 7 to Annex A be approved.

m)  The Treasury Management Strategy for 2019/20 (and the remainder of 2018/19) as set out in Appendix 8 to Annex A be approved.

n)   An increase to the allocation targeting higher yields from £200m to £235m (as set out in the Treasury Management Strategy in Appendix 8 to Annex A) to increase the overall rate of return and the income contributed to the revenue budget, based on the stability of the County Council’s cash balances be approved.

o)    Authority is delegated to the Deputy Chief Executive and Director of Corporate Resources to manage the County Council’s investments and borrowing according to the Treasury Management Strategy Statement as appropriate.

B.           CAPITAL PROGRAMME 2019/20 – 2021/22

That the County Council:

p)    Approve the increase in value of the M27 J10 scheme (design and development phase) from £1.5m to £4m.

q)    Approve an increase in the capital programme by £32.869m to meet the additional costs associated with further infrastructure works and the by-pass at Botley.

r)     Approve the capital programme for 2019/20 and the provisional programmes for 2020/21 and 2021/22 as set out in Annex 2 to the Cabinet Report.