Agenda item

To pre-scrutinise a report going to the Executive Lead Member for Universal Services on the proposed capital programme.

The Chairman agreed to receive the presentation and allow questions and debate for items 6 and 7 of the agenda together under item 6.

The Director introduced the proposed capital programme for 2024-2027 and the Revenue Budget for 2024/25. Members heard that:

·         The December settlement was broadly neutral, although slightly lower than forecasted expectations.

·         The cash limit for Universal services had increased by 6%, predominantly to meet a £7m increase for inflation, primarily resulting from increases in the highway maintenance and waste disposal contracts.

·         C.£1 had been added to the budget for the impact of the removal of charges for DIY waste at Household Waste Recycling Centres (HWRC) based on savings when charges were introduced, however the full impact was expected to be double this based on current costs.

·         Income and recharges contributed approximately 45% of the overall revenue budget for Universal Services.

·         £9.5m of T2021 and SP2023 savings were to be achieved throughout 2024/25, and Members were assured that should the projected savings  not be delivered in year then any deficit would be met from the cost of change reserve.

·         From 2025/2026 funds for capital investment would only be transferred from the revenue budget on an as needed basis, to avoid any unnecessary build up in the capital investment reserve.

·         It was highlighted that the deterioration of the highways network, particularly following the winter of 2022 and unfavourable conditions during winter 2023/24, was a key challenge for the department and spending plans.

·         Through the Stronger Roads Today Programme the County Council had secured additional resources to support maintenance of the network and taking this innovative approach had placed the Council in a more favourable position than others.

Staff retention, resilience and wellbeing was an ongoing focus, with the directorate recognising the importance of keeping staff motivated to deliver the best service for Hampshire residents. Members heard it had been a demanding year with staff supporting and embedding a new, large directorate coupled with development of SP25 proposals, but that officers had risen to the challenge and the Council’s innovative approaches and ways of working enabled it to be better placed than some other authorities and businesses in the private sector.

In response to Members questions it was heard that:

·         Provision was made centrally for the annual staff pay award, and once the award level was confirmed the necessary budget would be transferred to individual directorates to meet any costs.

·         Whilst income already represented 45% of the revenue budget, the directorate continued to look for opportunities to maximise and increase this. It was noted, as an example, Hampshire Transport Management was fully self-funding/sustaining.

·         Allocation of central government funding for highway maintenance was based on network length, rather than usage, with those areas with higher classification roads receiving increased funding. It was considered that the formula was a reasonably fair method.

·         The Council held extensive metrics around claims for damage caused by potholes. Data was not specifically held regarding the types of tyres damaged, although it was understood that lower profile tyres, which were increasing in use, were more susceptible to damage.

·         No additional allowance had been made within the capital budget to provide for local communities and councils to bid for funding for automated crossings, as School Crossing provision was subject to the current public consultation.

·         The Directorate worked closely with Hampshire 2050 to prioritise spend on those bus routes which were to form part of future strategic priorities. The strategy focussed on providing pump prime funding to bus service operators so routes could become self-sustaining in the future, rather than using resources to sustain services which were no longer financially viable.

·         With costs for road maintenance increasing ahead of available income, the Directorate would be looking to deliver proactive approaches wherever possible, such as resurfacing roads, rather than reactive actions such as patching, to enable longer term sustainability.

·      £106,000 was set aside in the budget to deliver the provision of flood defences, which would form part of the overall, partially grant funded, £24.9m programme. It was noted that, as a starts-based programme, the figures within the report did not include the value of schemes currently in design and delivery, but where works started in prior years. It was heard that £1.5m of this overall funding was set aside to develop future flood programmes beyond 2025. 

·         Income generated from recycling would no longer be passed onto to District and Borough Councils. Members heard that the Council were entitled to remove this funding several years ago and had identified this was the appropriate time to do so, following significant notice and engagement with District and Borough Councils. It was hoped that this considered approach would prevent any disruption to or reduction in recycling rates

Councillors Bowerman, Drew, Kyrle and Mocatta declared a personal interest, as Cabinet Members within their own local authorities with responsibility for waste disposal and recycling.

·         The Directorate were considering a number of infrastructure proposals, to drive maximum efficiency out of the waste system and looking to mitigate costs through working collectively with Portsmouth and Southampton.

·         It was further noted that Hampshire was the first authority in the UK to use household technology to identify if upholstery contained specific chemicals which would require a separate disposal process, allowing those which did not to be disposed of through the standard waste process and generating significant savings.

Through debate it was heard that funding for the rapid transport link in Basingstoke would form part of the Highways Planning process through Hampshire 2050.

Members acknowledged the challenging future ahead, with a need to meet to statutory legal provision, whilst delivering a proactive programme of work to keep Hampshire fit for the future, against a reduction in available funding. The Committee offered their thanks to officers for bringing forward a balanced budget for 2024/25 and for the proposals presented which would make good use of the resources available.

RESOLVED:

That the Select Committee Supports the recommendations being proposed to the Executive Lead Member for Universal Services in paragraphs 2 to 14 (page 1) of the attached report.