Agenda and minutes

(Item 5 – report by Mr J Simmonds, Cabinet member for Finance and Business Support and Mr A Wood, Corporate Director of Finance and Procurement)

Cabinet considered a report detailing the Local Government Finance settlement 2013/14 (for information) and the KCC Draft Budget 2013/14 (for endorsement and comment to County Council).

Mr Simmonds introduced the report to Cabinet; he spoke initially about the Local Government Finance Settlement.  He reported that the settlement was one of the most complex to date and thanked officers for their hard work in realising the budget.  The complexity of the settlement had been further compounded by the late release of information; the settlement was announced on Thursday 20^th December 2012.  Therefore, the analysis of the information, calculation of the effects and modification to the draft budget had been completed in a very short time.

He continued to describe the draft budget for consideration by Cabinet; in particular he referred to the following:

• That it included the detailed Local Government Settlement and the possible implications for KCC and the budget forecast for the 2013/14.  In addition the report contained information regarding the Capital Programme, Treasury Strategy, possible tax base and a recommendation to Personnel Committee regarding a staff pay offer.
• He reported, and apologised for, the necessity of some very late changes to the draft budget that had been necessary since the agenda for the meeting was published.
• He referred to the extensive consultation that had been undertaken to gather views of residents on the draft budget.  He regretted that more people had not taken the opportunity to be involved, but did not feel that this was a result of any fault in the exercise by KCC.  However the responses that were received, particularly form the two MORI workshops, had helped to shape the budget and to identify changes.
•  He reminded cabinet that, three years ago the administration had agreed that savings of £340 million would have to be made over the next four years.  This and other economic factors would affect residents of Kent, and it was agreed that as far as was possible Council Tax would be frozen in order to alleviate some of those pressures.  In order to achieve this freeze, Kent must show a balanced budget.
• Although the process has been difficult the current administration had now produced 12 consecutive years of balanced budgets.  This achievement had been further pronounced in the last two years when significant savings had been expected and KCC had not only met those requirements but had delivered an underspend.  He thanked not only the Finance Directorate but each individual Directorate for carefully monitoring spending and adapting practices over the years.
• That KCC recognised the dangers inherent on relying on one-off payments such as the Council Tax Freeze Grant and other similar payments from Government and he assured Cabinet Members that where payments were accepted and spent contingencies were in place to maintain services should grants be revoked.  As an example of this practice he reported to  ...  view the full minutes text for item 29.

(Item 6 – report by Mr J Simmonds, Cabinet member for Finance and Business Support and Mr A Wood, Corporate Director of Finance and Procurement)

Cabinet received a report on the results of the budget monitoring work completed since the previous report was considered by Cabinet in December 2012

Mr Simmonds introduced the report for Cabinet and drew attention to the following points:

• He emphasised the importance of the monitoring reports in the formulation budget that had been considered in the previous item.,  Without the careful monitoring of performance, trends and need the assumptions on which the budget was formed would not be possible.
• The Gross underspend to date was £6.7million, an increase of £1.5million, and by he end of the year it was predicted that it would stand at approximately £7.1million.  He praised this achievement in light of the difficult savings already made.
• The Education Learning and Skills Directorate underspend was up by £500,000, largely accredited to the savings achieved since the introduction of the new Home to School transport policy and the popularity of the Freedom pass.  As a member who represented a rural area he did note the importance of provision for those areas.  These savings were offset slightly by an increase in SEN Home to School spending.  This increase reflected an increase in those presenting for and receiving help.  The council would continue to seek better and more efficient ways of providing help for these families, including, when the circumstances are appropriate, personalised budgets.
• Specialist Children’s Services showed some over budget spend, largely as a result of legal costs incurred for assistance with cases being pursued and in relation to the support for ARE asylum seekers, a cost which was currently the centre of negotiations with Government.
• Adult Services costs had been reduced over the last few months as a result of a reduction in need, this trend had ceased and was a reminder that predictions in the budget must be carefully monitored.

In addition, Mr Simmonds congratulated Kent County Council on providing, in times of austerity, a Capital Programme valued at £600million.

Mr Sweetland, Cabinet Member for Highways Environment and Waste, spoke further on the comments made by Mr Simmonds about provision of bus services in rural areas.  He reminded cabinet that 200 rural bus routes were subsidised by Kent County Council and the 2013/14 budget contained £6million commitment to continue to do so, this had been protected because as Mr Simmonds had rightly said the Freedom Pass and other concessionary schemes were useful only where routes existed.

The popularity of the Freedom Pass continued, with 27,500 now in use.  Most recipients paid £100 to receive the pass and this price had been frozen within the 2013/14 and the support for those from low income families would also remain in place for the next financial year.

It was RESOLVED that:

RECORD OF DECISION

(Item 7 – report by Mr Roger Gough, Cabinet member for Business Strategy, Performance and Health Reform and Mr D Cockburn, Corporate Director of Business Strategy and Support)

Cabinet received a report providing information about the ongoing BDUK project to introduce Broadband to every property in Kent and Medway and ensure that most would be able to access superfast broadband.  Members were to have regard to the information contained within the report before taking their decision the recommendation within the exempt report at item 8 of the agenda was considered.

Mr Gough introduced the report for Cabinet and in particular made reference to the following:

• That the project had now progressed to a crucial point.  Achievements had been made to secure attractive broadband prospects for Kent, set out in section 3.2 of the report.
• That officers had managed the complex BDUK process well and this had enabled Kent to secure an early position within the scheme.
• That work conducted with DEFRA scheme had strengthened the project and its potential impact on rural communities.
• He thanked officers for the achievement so far secured and for the strong leadership they had provided to the partnership process with District Councils as part of this project.
• That the uncertainties caused by the protracted negotiations on European State Aid at Government level had now been resolved and would not impact negatively on the Council’s timeframe as it seemed it might at one point.  Mr Gough referred to the report and clarified the timeframe contained therein for members.
• First services would come on line next year and to all properties in 2015.

It was RESOLVED that:

The information within the report be NOTED and considered in conjunction with the information contained within the report at item 8 before a decision was reached.

(Item 8 – report by Mr Roger Gough, Cabinet member for Business Strategy, Performance and Health Reform and Mr D Cockburn, Corporate Director of Business Strategy and Support)

Cabinet received an exempt report providing further information about the ongoing BDUK project which was exempt from publication under paragraph 3 of schedule 12a of section 100a of the Local Government Act 1972.

Mr Gough presented the report to Cabinet and officers, Liz Harrison, Economic Development Manager and Phil Lamacraft, Senior Commercial Manager were in attendance to respond to questions. 

Cabinet discussed the information contained within the report, and that received from the Portfolio holder and officers and having regard to the information received during the public report at item 7 the recommendations within the report were put.

It was RESOLVED that:

RECORD OF DECISION