Agenda item

To consider a report of the Leader and the recommendations of Cabinet for the Revenue Budget and Precept for 2018/19 and the Capital Programme for 2018/19 to 2020/21.

The Leader presented his Budget Speech regarding the Revenue Budget and Precept for 2018/19 (Item 9 in the Minute Book) and was assisted by Councillor Mel Kendal, the Executive Member for Economic Development in regard to the Capital Programme for the period 2018/19 to 2020/21.

In commending the revenue budget proposals the Leader highlighted continuing challenges, namely demographic pressures – growing demand for social care for the elderly, for vulnerable adults and for young children, inflation – a 2% salary increase was being budgeted for, and the reducing Revenue Support Grant from Government which would eventually reduce to zero.  Due to these challenges and to protect services in the face of on-going major financial pressure, a Council Tax Precept of 5.99% was proposed, which would remain one of the lowest in the country.  The County Council was required to set a balanced budget and this was achievable as a result of a clear strategy and careful financial management.

In regard to the Capital Programme, the Executive Member for Economic Development highlighted a number of key points: a further £26m for the provision of 90 more units for adults with disabilities in Basingstoke, New Milton, Aldershot, Eastleigh and Fareham; increasing the number of children’s social workers and addressing the increasing demands of Home to School Transport; investment in libraries, country parks and outdoor centres and the revised PFI financing for the street lighting contract resulting in £1m per year in savings which had reduced the need to find savings in Household Waste Recycling Centres.  The Executive Member drew Members attention to the urgent schemes listed in Appendix 2, which required the Council’s approval including the Redbridge flyover, the Winchester Leisure complex and the Basingstoke Canal.

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                48

Councillors: Bennison, Birkett, Boiles, Branson, Briggs, Brooks, Carew, Carpenter, Carter, Chadd, Choudhary, Rod Cooper, Dibbs, Fairhurst, Forster, Gibson, Glen, Grajewski, Harvey, Hayre, Heron, Hughes, Humby, Huxstep, Joy, Kemp-Gee, Kendal, Latham, Locke, Mans, McEvoy, McNair Scott, Mellor, Mitchell, Mocatta, Oppenheimer, Penman, Perry, Philpott, Quantrill, Reid, Stallard, Still, Taylor, Thacker, Rhydian, Warwick, White,

AGAINST       20

Councillors: Chegwyn, Clarke, Collett, Mark Cooper, Craig, Dowden, Frankum, Harrison, Hiscock, House, Irish, James, Porter, Price, Simpson, Tennent, Thornton, Tod, Wade, Westbrook,

ABSTAIN       1

Councillor Burgess

RESOLVED:

A. Revenue Budget and Precept 2018/19

That the County Council approves:

a)      The Treasurer’s report under Section 25 of the Local Government Act 2003 (Appendix 7 to Annex A) and take this into account when determining the budget and precept for 2018/19.

b)      The Revised Budget for 2017/18 set out in Appendix 1 to Annex A.

c)      The Revenue Budget for 2018/19 as set out in Annex 1 to this Part I report.

d)      Funding for one off revenue priorities linked to the development of capital investment totalling £3.045m as set out in paragraphs 5.25 to 5.36 of Annex A.

e)      The strategy for dealing with new capital investment priorities as set out in Section 6, together with the addition of new schemes totalling £15.78m (net) as detailed in Appendix 2 to Annex A.

f)       The changes to ETE savings proposals as outlined in paragraphs 9.8 to 9.14 of Annex A, together with the proposed increase in corporate housekeeping savings that will be met from additional council tax income generated from the 1% increase in 2018/19.

g)      Recurring funding from 2018/19 onwards of £3.2m rising to £3.7m per annum, to be held within contingencies, to partly cover the forecast increased costs for Children Looked After.

h)      That the total budget requirement for the general expenses of the County Council for the year beginning 1 April 2018, be £751,701,377.

i)       That the council tax requirement for the County Council for the year beginning 1 April 2018, be £608,452,465.

j)        That the County Council’s band D council tax for the year beginning 1 April 2018 be £1,200.96, an increase of 5.99% of which 3% is specifically for adults’ social care.

k)      The County Council’s council tax for the year beginning 1 April 2018 for properties in each tax band be:

l)       Precepts be issued totalling £608,452,465 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 authorities area as determined by them and as set out below:

m)       The Treasury Management Strategy and the Annual Investment Strategy for 2018/19 (and the remainder of 2017/18) as set out in Appendix 8 to Annex A be approved, including:

·           The Prudential Indicators for 2018/19, 2019/20 and 2020/21. (Appendix 8 - Annex C).

·           The Minimum Revenue Provision (MRP) Statement (Appendix 8 - Annex D).

·           The delegation of authority to the Director of Corporate Resources to manage the Council’s investments according to the risk assessment process in the Investment Strategy as appropriate.

·           Investments of up to £35m for up to 20 years in the Manydown joint venture in which the County Council has a significant interest.

·           The delegation of authority to the Director of Corporate Resources to approve investments in the Manydown joint venture in consultation with the Executive Member for Policy and Resources.

B. Capital Programme 2018/19 – 2020/21

That the County Council approve:

n)      The capital programme for 2018/19 and the provisional programmes for 2019/20 and 2020/21 as set out in Appendix 3 to Annex B.

o)      The new capital schemes contained in Appendix 4 to Annex B.