Issue - meetings

To consider the Cabinet’s recommendations in respect of the Budget and Council for the 2020-21 financial year.

Further to Minute No.120 of the meeting of the Cabinet held on 17 February 2020, consideration was given to the report that proposed the Council’s Budget and Council Tax for 2020/21.  This was based on the outcome of the Council’s Final Local Government Finance Settlement, budget consultation process and consideration of Directorate budget proposals through the Council’s formal Budget and Scrutiny processes (Overview and Scrutiny Management Board), alongside a review of the financial planning assumptions within the Medium Term Financial Strategy. It was noted in the report that since the introduction of austerity measures in 2010 the Council had been successful in making savings in excess of £200m in response to significant reductions in Central Government funding. This figure included savings of £16m that had been approved by Council in February 2019 in setting a two-year budget for 2019/20 and 2020/21 (Minute No.156, 2019/20) still to be delivered during 2020/21.

In moving the recommendations, the Leader thanked everyone who had contributed to mammoth process of pulling the budget proposals together, in particular the Strategic Director – Finance and Customer Services and her team, the Cabinet Member - Corporate Services and Finance, and Cabinet colleagues.

The Leader noted that in 2019 a two year budget had been approved in order to meet the challenges of a £30million budget gap following a £170million reduction in the Council’s budget since 2010 created by cuts in Government funding, and that overall these reductions had amounted to £1,700 of cuts for every household in the borough.

The Leader noted that in 2013, the then Local Government Minister, Brandon Lewis had stated that the decentralisation of local government finance would put councils in charge and reward them for supporting local enterprise, building more homes and backing local jobs. The Leader stated that despite this statement the reality for Rotherham was, despite being one of the fastest growing local economies in the region, that in ten years over 1,800 jobs had been lost at the Council.

The Leader outlined several examples of the vital role that Council services played in supporting the elderly, disabled and children in the Council’s care to have the quality of life that they deserved and were entitled to, as well as the cost of providing these essential services, noting that nearly two thirds of the Council’s budget was spent on providing essential social care services. The Leader stated that it was right to say that the that the people who provided these critical, intimate services deserved more than poverty pay, and that while the number of people needing home care had risen 10% per year every year for the last three years, the Council’s 800 home care staff would be paid the Real Living Wage from this April in recognition of how important that work was.

The Leader expressed his frustration that the Government had still not comprehensively reviewed how local authorities were funded, and that yet again a “sticking plaster” solution had been provided with some, but not enough extra funding,  ...  view the full minutes text for item 313

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

That Cabinet resolve to recommend to Council:-

1.     Approval of the Budget and Financial Strategy for 2020/21 as set out in the report and appendices, including the proposed budget adjustments and investments, a basic Council Tax increase of 0.99%  ...  view the full agenda text for item 120

Consideration was given to a report proposed the Council’s Budget and Council Tax for 2020/21, based on the Council’s Provisional Local Government Finance Settlement for 2020/21, budget consultation and the consideration of Directorate budget proposals through the Council’s formal Budget process alongside a review of the financial planning assumptions within  ...  view the full minutes text for item 120

Cabinet Portfolio:               Corporate Services and Finance

Strategic Directorate:         Finance and Customer Services

Consideration was given to a report that was submitted for pre-decision scrutiny ahead of the Cabinet meeting scheduled for 17 February 2020 in respect of the Budget and Council Tax 2020-21 and Medium-Term Financial Strategy.

The report provided information on the Council’s Budget and Council Tax for 2020/21 based on the Council’s Provisional Local Government Finance Settlement for 2020/21, budget consultation and the consideration of Directorate budget proposals through the Council’s formal Budget process, alongside a review of the financial planning assumptions contained within the Council’s Medium Term Financial Strategy. 

In setting the proposed 2020/21 budget, increases of 0.99% in the Council’s basic Council Tax and of 2.0% in the Adult Social Care precept were being recommended. The revenue budget for 2020/21 was the second year of a two-year budget for 2019/20 and 2020/21 that had been approved by Council on 27 February 2019. It was noted that since the introduction of austerity measures in 2010, the Council had made savings in excess of £200 million in response to the significant reductions in Central Government funding, and that this figure included savings of £16 million that would need to be delivered during 2020/21.

The Leader of the Council and the Strategic Director, Finance and Customer Services attended the meeting to respond to specific queries from Members in respect of report.

The Leader advised that while the setting of a two year budget had been effective in addressing some of the difficulties that Government austerity measures had created for the Council and had ensured that no further job losses or service reductions were required in 2020/21, there still remained much financial uncertainty for the Council that made budget planning for future years very difficult. The Leader noted that the continuing uncertainty around changes to Business Rates retention was a particular area of difficulty for future years. In view of this continued uncertainty the Leader noted the importance of the Council being able to increase its level of reserves in 2020/21 to help mitigate against the risk of future financial uncertainties

Members sought clarification that increases to the Real Living Wage had been incorporated into the budget with regard to independent sector home care service provision contracts. The Strategic Director, Finance and Customer Services confirmed that this assumption had been included. The Leader noted that the budget for 2020/21 enabled the Council to pay the Real Living Wage to all homecare staff who were employed both directly and indirectly by the Council, contributing to the  delivery of the Council’s  Social Value Policy.

Members asked several specific questions on the financial planning activities around the delivery of both Adult Services and Children’s and Young People’s Services and welcomed the greatly improved situation of the position of the Adult Services budget compared to previous years. The Leader advised that detailed service planning around anticipated service demand had enabled the effective budget management for Adult Services. The Leader noted that even with the most effective planning and budgetary control there would always be more uncertainty  ...  view the full minutes text for item 135