Agenda item

Report of the Chief Executive and Head of Corporate Resources

Further to Minute No. 73 of the Cabinet Meeting held on 12 January 2017, the Council considered the report of the Chief Executive and Head of Corporate Resources which provided details of the development of a 3 year financial strategy for the period 2017/18 – 2019/20 (the budget plan period) which reflected the current financial challenges facing the Council during the period, the proposed approach to meeting those challenges and how they reflect the Council’s statutory requirement to remain financially sustainable and the desire to deliver the Sefton 2030 Vision and the Councils Core Purpose.

 

Given the scale of the financial and service challenges facing the Council, this was a complex and detailed report, which provided for a financial balanced budget, but this would require major and difficult decisions on how the council delivers it services, the level at which it continues to deliver them and Council Tax implications.

 

The report presented a financially balanced strategy and some areas of change were more specific than others. Where possible the change was explained at the detailed budget level and where this was not possible a budget planning assumption had been made based on the best available information. This was sufficiently robust to approve the budget and associated policy changes, whilst recognising that the details would continue to be refined over the period of the strategy.

 

This report set out the detailed approach to the strategy, which included:

 

·         The national and local financial context  within which the Council is operating;

·         The funding gap facing the Council for the three year period 2017/18 to 2019/20;

·         The approach to delivering both the aspirations of the Sefton 2030 Vision and a financially sustainable council;

·         The financial, service and community impact of the Budget including the reserves position of the Council; and,

·         The draft capital programme for the 3 year period.

 

The Cabinet on 12 January 2017 (Minute No. 73 refers) had considered these items, and the report provided additional information and updates on the specific Public Sector Reform Projects and Service Delivery Options, including some changes to the financial assumptions. In addition, there were some further revisions to the Medium Term Financial Plan. The report indicated that after these minor changes, a financially balanced budget strategy for the forthcoming 3 year period was presented for consideration by the Council.

 

The report requested the Council to consider and determine the following issues:

 

·         the Budget for 2017/18 and the three-year financial plan 2017/18 to 2019/20;

·         the Council Tax increase for Sefton Council for 2017/18; and,

·         the overall Council Tax resolution.

 

The Council also considered the draft Council Tax resolution for 2017/18 which had been prepared by the Head of Corporate Resources and circulated to Members of the Council in the supplementary agenda.

 

It was moved by Councillor Maher, seconded by Councillor Fairclough:

 

That:

 

(1)       the update of the Medium Term Financial Plan for the period 2017/18 to 2019/20, which included the implications of the provisional local government settlement be noted;

 

Delivery of the Framework for Change

 

(2)       approval be given to the budget proposals within the report, as described in Chapter 5 of Appendix A to the report; the risks, PSED information and the mitigating actions within the decisions be noted and taken into account and approval be given to the commencement of all appropriate activity as detailed, including for example, consultation with employees and engagement with partners and contractual changes;

 

(3)       approval be given to the current levels of trade union facility time and associated arrangements for the whole period of the budget plan;

 

(4)       it be noted that officers will comply with agreed HR policies and procedures including relevant consultation with Trade Unions and reports to the Cabinet Member - Regulatory, Compliance & Corporate Services;

 

(5)       approval be given to the programme management and governance arrangements in relation to the Framework for Change being delegated to the Chief Executive in conjunction with the Leader of the Council;

 

Capital Programme 2017/18 to 2019/20

 

(6)       approval be given to the inclusion within the Capital Programme of the Capital schemes to be funded from school and transport grants, 2017/18 to 2019/20 as outlined in Paragraphs 8.2.2 and 8.3.2 of the report;

 

(7)       approval be given to the inclusion within the Capital Programme of the fully grant funded schemes as detailed in Paragraphs 8.5.1 of the report;

 

Budget 2017/18 and Medium Term Financial Plan 2017/18 to 2019/20

 

(8)       approval be given to the budget for 2017/18 and the three-year financial plan covering the years 2017/18 to 2019/20; and officers be authorised to undertake the necessary actions relating to the implementation associated with the recommendations, such necessary actions are described under each proposal in Chapter 5 of Appendix A in the report;

 

(9)       approval be given to the Fees and Charges as proposed in the draft Council budget and set out in Appendix D of the report;

 

(10)     approval be given to the use of one-off resources of £4.65m in 2017/18 to smooth the impact of the required savings over the budget plan period as set out in Paragraph 3.2 of Chapter 4 of Appendix A to the report; and to the funding of the one off investment to secure an economic legacy from the Open Golf Championship as referred to in Paragraph 3.3 of Chapter 4 to the report,.

 

(11)     approval be given to the development of the Cost of Change budget with a value of £8.5m as set out in Paragraph 3.4 of Chapter 4 of Appendix A of the report;

 

(12)     approval be given to a Council Tax increase in 2017/18 of 1.99%;

 

(13)     approval be given to a Social Care Council Tax Precept of 3%in 2017/18 resulting in an overall increase in Council Tax for Sefton of 4.99% in 2017/18;

 

(14)     approval be given to the allocation of specific grants as detailed in Paragraphs 10.3 to 10.20 of the report;

 

(15)     the Schools’ Forum decisions on the Dedicated Schools Grant and Individual School Budgets as set out in Appendix B to the report be noted;

 

(16)     approval be given to the approach and delegated authorities set out in paragraph 10.21 of the report, as permanent “business as usual” arrangements for setting Adult Social Care fees; and

 

(17)     subject to above, the overall Council Tax resolution including a Social Care Precept, Police and Fire and Parish Precepts, as set out in the supplementary agenda be approved.

 

Councillors Maher, McGuire, Dutton and Gannon each gave a statement expressing the views of their political groups on the content of the report.

 

Following debate on the report, an amendment was moved by Councillor Hands, seconded by Councillor Pullin that the Motion be amended as follows:

 

“That the budget proposals set out in the report be amended by utilising £2m from the Transforming Sefton Reserve into 5 new earmarked funds for community use that will support the delivery of the Sefton 2030 Vision.

  

These 5 funds will be:-

 

·         School and Education Improvement Community Fund

·         Social Care Assistance Community Fund

·         Dementia Accessibility Community Fund

·         Autism Assistance and Early Intervention Community Fund; and

·         Environmental Improvement Community Fund

 

These one-off funds will be £400,000 each that individuals and organisations can bid for in order to deliver specific schemes. Schemes must be for the benefit of the Sefton Community and have measurable outcomes that will contribute to the delivery of the Sefton 2030 Vision.

 

The net impact of the proposed amendment will still ensure that the Councils three year budget remains balanced.”

 

The Mayor reported that the Head of Corporate Resources and Section 151 Officer had indicated that the amendment if carried, would not affect his opinion set out in his robustness report considered under Minute No. 87 above.

 

Following debate and in accordance with Rule 96 of Chapter 4 in the Constitution, the voting on the Amendment was recorded and the Members of Council present at the time, voted as follows:

 

FOR THE AMENDMENT:

 

Councillors Ashton, David Barton, Jo Barton, Bliss, Booth, Dodd, Dutton, Gannon, Hands, Jamieson, Jones, Daniel Lewis, McCann, McGuire, O’Hanlon, Pitt, Preece, Pullin, Shaw, Lynne Thompson, Weavers, Bill Welsh and The Mayor.

 

AGAINST THE AMENDMENT:

 

Councillors Atkinson, Bradshaw, Burns, Byrom, Carr, Carragher, Linda Cluskey, Cummins, Dams, Fairclough, Friel, Grace, Hardy, John Kelly, John Joseph Kelly, Lappin, Dan T. Lewis, Maher, McGinnity, McKinley, Moncur, Murphy, Brenda O’Brien, Michael O’Brien, Owens, Page, Robinson, Roche, Roscoe, Sayers, Spencer, Thomas, Anne Thompson, Tweed, Veidman and Webster.

 

The Mayor declared that the Amendment was lost by 36 votes to 23

 

Following debate, a further amendment was moved by Councillor McGuire, seconded by Councillor Booth that the Motion be amended as follows:

 

“The proposed Tourism saving be reduced by £300,000 with the cost being met through corresponding reductions in the Council’s senior management staffing budget i.e. Head of Service and above. This proposal will ensure that an appropriate budget continues to exist in order that the economic benefits from the tourism sector can be realised.

 

The net impact of the proposed amendment will still ensure that the Council’s three year budget remains balanced.”

 

At this point, The Mayor requested that the Meeting be adjourned for a short period of time, to enable the Members and Chief Executive to consider the implications of the amendment.

 

The Meeting reconvened after a ten minute adjournment and the Chief Executive indicated that she had a personal interest in the amendment and would leave the Council Chamber during the consideration of the amendment.

 

The Council then debated the amendment and in accordance with Rule 96 of Chapter 4 in the Constitution, the voting on the amendment was recorded and the Members of Council present at the time, voted as follows:

 

FOR THE AMENDMENT:

 

Councillors Ashton, Booth, Dodd, Hands, Daniel Lewis, McGuire, Preece, Pullin, Shaw, Lynne Thompson, Weavers, Bill Welsh and The Mayor.

 

AGAINST THE AMENDMENT:

 

Councillors Atkinson, Bradshaw, Burns, Byrom, Carr, Carragher, Linda Cluskey, Cummins, Dams, Dutton, Fairclough, Friel, Gannon, Grace, Hardy, Jamieson, John Kelly, John Joseph Kelly, Lappin, Dan T. Lewis, Maher, McCann, McGinnity, McKinley, Moncur, Murphy, Brenda O’Brien, Michael O’Brien, O’Hanlon, Owens, Page, Pitt, Robinson, Roche, Roscoe, Sayers, Spencer, Thomas, Anne Thompson, Tweed, Veidman and Webster.

 

ABSTENTIONS:

 

Councillors David Barton, Bliss and Jones.

 

The Mayor declared that the Amendment was lost by 42 votes to 13 with 3 abstentions.

 

The Chief Executive re-entered the Council Chamber at this point.

 

Following further debate and in accordance with Rule 96 of Chapter 4 in the Constitution, the voting on the Motion was recorded and the Members of Council present at the time, voted as follows:

 

FOR THE MOTION:

 

Councillors Atkinson, David Barton, Bliss, Bradshaw, Burns, Byrom, Carr, Carragher, Linda Cluskey, Cummins, Dams, Dutton, Fairclough, Friel, Gannon, Grace, Hardy, Jamieson, Jones, John Kelly, John Joseph Kelly, Lappin, Dan T. Lewis, Maher, McCann, McGinnity, McKinley, Moncur, Murphy, Brenda O’Brien, Michael O’Brien, O’Hanlon, Owens, Page, Pitt, Robinson, Roche, Roscoe, Sayers, Spencer, Thomas, Anne Thompson, Tweed, Veidman and Webster.

 

AGAINST THE MOTION:

 

Councillors Ashton, Booth, Dodd, Hands, Daniel Lewis, McGuire, Preece, Pullin, Shaw, Lynne Thompson, Weavers, Bill Welsh and The Mayor.

 

The Mayor declared that the Motion was carried by 45 votes to 13 and it was

 

RESOLVED:

 

That

 

(1)       the update of the Medium Term Financial Plan for the period 2017/18 to 2019/20, which included the implications of the provisional local government settlement be noted;

 

Delivery of the Framework for Change

 

(2)       approval be given to the budget proposals within the report, as described in Chapter 5 of Appendix A to the report; the risks, PSED information and the mitigating actions within the decisions be noted and taken into account and approval be given to the commencement of all appropriate activity as detailed, including for example, consultation with employees and engagement with partners and contractual changes;

 

(3)       approval be given to the current levels of trade union facility time and associated arrangements for the whole period of the budget plan;

 

(4)       it be noted that officers will comply with agreed HR policies and procedures including relevant consultation with Trade Unions and reports to the Cabinet Member - Regulatory, Compliance & Corporate Services;

 

(5)       approval be given to the programme management and governance arrangements in relation to the Framework for Change being delegated to the Chief Executive in conjunction with the Leader of the Council;

 

Capital Programme 2017/18 to 2019/20

 

(6)       approval be given to the inclusion within the Capital Programme of the Capital schemes to be funded from school and transport grants, 2017/18 to 2019/20 as outlined in Paragraphs 8.2.2 and 8.3.2 of the report;

 

(7)       approval be given to the inclusion within the Capital Programme of the fully grant funded schemes as detailed in Paragraphs 8.5.1 of the report;

 

Budget 2017/18 and Medium Term Financial Plan 2017/18 to 2019/20

 

(8)       approval be given to the budget for 2017/18 and the three-year financial plan covering the years 2017/18 to 2019/20; and officers be authorised to undertake the necessary actions relating to the implementation associated with the recommendations, such necessary actions are described under each proposal in Chapter 5 of Appendix A in the report;

 

(9)       approval be given to the Fees and Charges as proposed in the draft Council budget and set out in Appendix D of the report;

 

(10)     approval be given to the use of one-off resources of £4.65m in 2017/18 to smooth the impact of the required savings over the budget plan period as set out in Paragraph 3.2 of Chapter 4 of Appendix A to the report; and to the funding of the one off investment to secure an economic legacy from the Open Golf Championship as referred to in Paragraph 3.3 of Chapter 4 to the report,.

 

(11)     approval be given to the development of the Cost of Change budget with a value of £8.5m as set out in Paragraph 3.4 of Chapter 4 of Appendix A of the report;

 

(12)     approval be given to a Council Tax increase in 2017/18 of 1.99%;

 

(13)     approval be given to a Social Care Council Tax Precept of 3%in 2017/18 resulting in an overall increase in Council Tax for Sefton of 4.99% in 2017/18;

 

(14)     approval be given to the allocation of specific grants as detailed in Paragraphs 10.3 to 10.20 of the report;

 

(15)     the Schools’ Forum decisions on the Dedicated Schools Grant and Individual School Budgets as set out in Appendix B to the report be noted;

 

(16)     approval be given to the approach and delegated authorities set out in paragraph 10.21 of the report, as permanent “business as usual” arrangements for setting Adult Social Care fees;

 

(17)     it be noted that at its meeting on 26 January 2017, the Council calculated the following amounts for the year 2017/2018 in accordance with the Local Authorities (Calculation of Council Tax Base) (England) Regulations 1992 (as amended):

 

(a)	81,906.80	Band D equivalent properties, for the whole area [item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended]; and
(b)	for dwellings in those parts of its area to which a Parish precept relates as shown in the table below:

 

Parish	Council Tax Base
	(Band D Equivalent Properties)
Aintree Village	2,019.17
Formby	9,054.19
Hightown	846.60
Ince Blundell	163.57
Little Altcar	322.86
Lydiate	2,037.31
Maghull	6,492.19
Melling	980.64
Sefton	231.19
Thornton	762.65

 

(18)     the Council calculate that the Council Tax requirement for the Council's own purposes for 2017/2018 (excluding Parish Precepts) is £117,826,208.

 

(19)     the following amounts be calculated by the Council for the year 2017/2018 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992:

 

(a)	£581,150,122	Being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.
(b)	-£462,402,456	Being the aggregate amounts which the Council estimates for the items set out in Section 31A(3) of the Act.
(c)	£118,747,666	Being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year (item R in the formula in Section 31B of the Act).
(d)	£1,449.79	Being the amount at 3(c) above (item R), divided by the amount at 1(a) above (item T), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish Precepts).
(e)	£921,458	Being the aggregate amount of all special items (Parish Precepts) referred to in Section 34(1) of the Act.
(f)	£1,438.54	Being the amount at 3(d) above, less the amount given by dividing the amount at 3(e) above by the amount at 1(a) above (item T), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no special item relates.
(g)	The amounts below, being the amounts given by adding to the amount at 3(f) above the amounts of thespecial items relating to dwellings in those parts of the Council's area mentioned above divided in eachcase by the amount at 1(b) above, calculated by the Council in accordance with Section 34(3) of the Actas basic amounts of its Council Tax for the year for dwellings in those parts of its area to which specialitems relate.
	Parish Aintree Village Formby Hightown Ince Blundell Little Altcar Lydiate Maghull Melling Sefton Thornton		£  1,468.26  1,446.55  1,444.99  1,450.46  1,447.83  1,509.61  1,531.83  1,458.93  1,454.11  1,444.44
(h)	The amounts below being the amounts given by multiplying the amounts at 3(f) and 3(g) above by thenumber which, in the proportion set out in Section 5(1) of the Act, is applicable to dwellings listed in aparticular valuation band divided by the number which in that proportion is applicable to dwellings listedin valuation Band D, calculated by the Council, in accordance with Section 36(1) of the Act, as theamounts to be taken into account for the year in respect of categories of dwellings listed in differentvaluation bands.
	Property Valuation Band Proportion of Band D A 6/9 B 7/9 C 8/9 D 9/9 E 11/9 F 13/9 G 15/9 H 18/9   £ £ £ £ £ £ £ £ Parish                                   Aintree Village 978.84 1,141.98 1,305.12 1,468.26 1,794.54 2,120.82 2,447.10 2,936.52                   Formby 964.37 1,125.09 1,285.82 1,446.55 1,768.01 2,089.46 2,410.92 2,893.10                   Hightown 963.33 1,123.88 1,284.44 1,444.99 1,766.10 2,087.21 2,408.32 2,889.98                   Ince Blundell 966.97 1,128.14 1,289.30 1,450.46 1,772.78 2,095.11 2,417.43 2,900.92                   Little Altcar 965.22 1,126.09 1,286.96 1,447.83 1,769.57 2,091.31 2,413.05 2,895.66                   Lydiate 1,006.41 1,174.14 1,341.88 1,509.61 1,845.08 2,180.55 2,516.02 3,019.22                   Maghull 1,021.22 1,191.42 1,361.63 1,531.83 1,872.24 2,212.64 2,553.05 3,063.66                   Melling 972.62 1,134.72 1,296.83 1,458.93 1,783.14 2,107.34 2,431.55 2,917.86                   Sefton 969.41 1,130.97 1,292.54 1,454.11 1,777.25 2,100.38 2,423.52 2,908.22                   Thornton 962.96 1,123.45 1,283.95 1,444.44 1,765.43 2,086.41 2,407.40 2,888.88                   All Other Parts of the Council's Area 959.03 1,118.86 1,278.70 1,438.54 1,758.22 2,077.89 2,397.57 2,877.08

 

(20)     it be noted that for the year 2017/2018 the Police and Crime Commissioner and Fire and Rescue Authority have stated the following amounts in precepts issued to the Council in accordance with Section 40 of the Local Government Finance Act 1992, for each of the categories of dwellings shown below:

 

			Property Valuation Band
Proportion of	A	B	C	D	E	F	G	H
Band D	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Precepting Authority
Merseyside Fire & Rescue Authority	49.56	57.82	66.08	74.34	90.86	107.38	123.90	148.68
Merseyside Police and Crime Commissioner	110.65	129.09	147.53	165.97	202.85	239.73	276.62	331.94

 

(21)     the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the table below as the amounts of Council Tax for 2017/2018 for each part of its area and for each of the categories of dwellings.

 

			Property Valuation Band
Proportion of	A	B	C	D	E	F	G	H
Band D	6/9	7/9	8/9	9/9	11/9	13/9	15/9	18/9
	£	£	£	£	£	£	£	£
Parish
Aintree Village	1,139.05	1,328.89	1,518.73	1,708.57	2,088.25	2,467.93	2,847.62	3,417.14
Formby	1,124.58	1,312.00	1,499.43	1,686.86	2,061.72	2,436.57	2,811.44	3,373.72
Hightown	1,123.54	1,310.79	1,498.05	1,685.30	2,059.81	2,434.32	2,808.84	3,370.60
Ince Blundell	1,127.18	1,315.05	1,502.91	1,690.77	2,066.49	2,442.22	2,817.95	3,381.54
Little Altcar	1,125.43	1,313.00	1,500.57	1,688.14	2,063.28	2,438.42	2,813.57	3,376.28
Lydiate	1,166.62	1,361.05	1,555.49	1,749.92	2,138.79	2,527.66	2,916.54	3,499.84
Maghull	1,181.43	1,378.33	1,575.24	1,772.14	2,165.95	2,559.75	2,953.57	3,544.28
Melling	1,132.83	1,321.63	1,510.44	1,699.24	2,076.85	2,454.45	2,832.07	3,398.48
Sefton	1,129.62	1,317.88	1,506.15	1,694.42	2,070.96	2,447.49	2,824.04	3,388.84
Thornton	1,123.17	1,310.36	1,497.56	1,684.75	2,059.14	2,433.52	2,807.92	3,369.50
All Other Parts of the Council's Area	1,119.24	1,305.77	1,492.31	1,678.85	2,051.93	2,425.00	2,798.09	3,357.70

 

 

(22)     the Council's basic amount of Council Tax for 2017/2018 is not deemed to be excessive in accordance with the principles approved under Section 52ZB of the Local Government Finance Act 1992.