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  • Agenda item
  • Agenda item

    Capital Programme 2019-22, Revenue Budget 2019-20 and Revenue Medium Term Financial Plan 2019-22 (including Council Tax setting 2019-20)

    Minutes:

    (1)          The Chairman reminded all Members that any Member of a Local Authority who was liable to pay Council Tax, and who had any unpaid Council Tax amount overdue for at least two months, even if there was an arrangement to pay off the arrears, must declare the fact that they are in arrears and must not cast their vote on anything related to KCC’s Budget or Council Tax.

     

    (2)           The Chairman stated that all Members would have received an email from Democratic Services, dated 7 February 2019, setting out the process and order of the budget debate.

     

    (3)        The Chairman moved and the Vice-Chairman seconded that:

     

    “Procedure Rule 1.12(2) be suspended in order that the meeting be extended to 5.00pm if necessary;

     

    Procedure Rule 1.28 be suspended in order that Mr Carter,  proposer of the original motion, be allowed to speak for 12 minutes and Mr Oakford, the seconder, be allowed to speak for 5 minutes, the Leaders of the Liberal Democrat, Labour and Independents Groups speak for 8, 6 and 4 – minutes respectively, with the Proposer of the motion being given a 5 minute right of reply; and the Cabinet Members to speak for up to 12 minutes when introducing each directorate debate;

     

    Procedure Rule 1.35 be suspended in order for the proposer and seconder of the original motion to be permitted to speak on more than one occasion.”

     

    Agreed without a formal vote

     

    (4)           The Chairman then invited Mr Shipton, Head of Finance (Policy, Planning and Strategy), to give a presentation on various issues relevant to the budget. As part of this presentation, Mr Shipton, as acting Section 151 officer, confirmed that the budget estimates were robust and the level of reserves adequate, as required by the Local Government Act 2003.

     

    (5)        Mr Carter moved and Mr Oakford seconded the following motion:

     

                “(i) The County Council is asked to agree the following:

     

                (a)       Net revenue budget requirement of £986.374m for 2019-20.

    (b)       Capital investment proposals of £999.573m over three years from 2019-20 to 2021-22 together with the necessary funding and subject to approval to spend arrangements.      

    (c) The new Capital Strategy as set out in appendix 1 of this report including

    the Prudential Indicators.

    (d)       The Minimum Revenue Provision (MRP) Statement as set out in appendix 2 of this report.

      (e)       The flexible use of capital receipts referred to in paragraph 1.16 and as set out in appendix 3 of this report.

    (f)        The directorate capital programmes as set out in section 1 of the draft Budget Book published on 2nd January 2019 as amended by the changes in this report (see appendix 4 of this report).

    (g)       The directorate revenue budget proposals as set out in draft Budget Book published on 2nd January 2019 as amended by the latest updates included in this report (summarised in appendices 5, 6, 7 and 8 of this report).

    (h)       Delegate responsibility to Cabinet Members and Corporate Directors to manage the budget within the parameters set out in the Constitution and Financial Regulations (summary delegations to managers as set out in appendix 6 to this report).

                (i)         To increase Council Tax band rates up to the maximum permitted without a referendum as set out in table 2 in appendix 9 to this report.

    (j)         To levy the additional 2% social care precept (raising an additional

    £14,052,783 and taking the total social care precept to £50,650,799 out of precept set out in (k) below).

    (k)       The total Council Tax requirement of £709,996,344 to be raised through precepts on districts as set out in appendix 9 to this report.

    (l)         The Treasury Management Strategy as set out in appendix 11 of this report.

    (m)      The reforms to the lowest Kent Scheme pay ranges (KR2 and KR3) to meet the commitment that the lowest pay in the Kent Scheme matches the £9 per hour Foundation Living Wage from 1st April 2019.

    (n)       The new flexible payment scheme for the Young Persons Travel Pass allowing eight equal monthly instalments from August to March.

     

    (ii) In addition:

              (o)       To note that the Cabinet Member for Corporate and Democratic Services, in consultation with the Leader and Cabinet, will determine the TCP

    reward thresholds for staff assessed as successful, excellent, and outstanding, and the uplift to the Kent Ranges in accordance with the 0.5%/£1,200 principles.

    (p)       To delegate authority to the Corporate Director of Finance (in consultation with the Leader, Cabinet Member for Finance & Traded Services and the political Group Leaders) to resolve any minor technical issues for the final budget publication which do not materially alter the approved budget or change the net budget requirement. This includes approving the distribution of unallocated amounts within the approved budget.

    (q)       Changes made in (p) above to be reflected in the final version of the Budget Book (blue combed) due to be published in March.

    (r)        To note the uncertain financial outlook for later years with the likelihood that spending demands exceed the available funding and the necessity for further savings (largely unidentified at this stage).”

     

    Children, Young People and Education

     

    (6)           The Cabinet Member for Children, Young People and Education introduced the budget for this Directorate prior to a general debate.

     

    (7)           Mr Farrell proposed and Ms Constantine seconded the following amendment:

     

     

    “Proposed spend: Increase funding to the youth services by £500,000 (draft Budget Book Section 3 - Revenue Budget Key Services page 39 line 48) to enable Safe Places. A Safe Place open for all young people where they can seek accurate advice and guidance, learn new skills, fail safely, learn to be a rounded person and deal with the problems of being a teenager and life in general. All young people are vulnerable, to exam stress, bullying, gangs, mental health, we need to be there for all, not waiting for them to be labelled ‘vulnerable’ before they receive support. Our Youth Service needs to be fit for purpose, modern and staffed by trained professionals

     

    Funded by: Higher than anticipated council tax base (use £200,000 of the £400,000 reduced draw-down from reserves on page 97 of appendix 8 to the Council report) and efficiency savings of £300,000 from Integrated Services Management & Directorate Support (draft Budget Book Section 3 page 40 line 56), detail of these savings to be determined with the service“

     

    (8)           Following the debate, the Chairman put to the vote the amendment set out in paragraph (7) above and the voting was as follows:

     

    For (11)

     

    Mr R Bird, Mr I Chittenden, Ms K Constantine, Mr D Daley, Mrs T Dean, Mr T Dhesi, Mr D Farrell, Mr P Harman, Mr A Hook, Mr B Lewis, Mr M Whybrow

     

    Against (59)

     

    Mrs A Allen, Mr M Angell, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Mr D Butler, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mr N Collor, Mr A Cook, Mr P Cooper, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Ms S Hamilton, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr P Lake, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr P Messenger, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr D Pascoe, Mr M Payne, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright

     

    Abstain (0)

     

    Amendment lost

     

    (9)           Dr Sullivan proposed and Mr Dhesi seconded the following amendment:

     

    “Proposed spend: Increase funding to children centres (draft Budget Book Section 3 – Revenue Budget Key Services page 39 line 47) by £0.9 million to improve life chances and outcomes for young children and families that need the support.  Additional resources to contribute towards a fully integrated children and family services; to be a real community hub, working in partnership with nurses, mental health experts, education, public health at a time and location best suited to the needs of modern family life.

     

    Funded by: Higher than anticipated council tax base (use £200,000 of the £400,000 reduced draw-down from reserves on page 97 of appendix 8 to the Council report) and efficiency savings of £700,000 from Integrated Services Management & Directorate Support (draft Budget Book Section 3 page 40 line 56), detail of these savings to be determined with the service. “

     

     

    (10)       Following the debate, the Chairman put to the vote the amendment set out in paragraph (9) above and the voting was as follows:

     

    For (12)

     

    Mr R Bird, Mr I Chittenden, Ms K Constantine, Mr D Daley, Mrs T Dean, Mr T Dhesi, Mr D Farrell, Mr P Harman, Mr A Hook, Mr B Lewis, Dr L Sullivan, Mr M Whybrow

     

    Against (59)

     

    Mrs A Allen, Mr M Angell, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Mr D Butler, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mr N Collor, Mr A Cook, Mr G Cooke, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Ms S Hamilton, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr P Lake, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr P Messenger, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr D Pascoe, Mr M Payne, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright

     

    Abstain (0)

     

    Amendment lost

     

    Growth, Environment and Transport Directorate

     

    (11)       The Cabinet Members for Planning, Highways, Transport & Waste, and Community & Regulatory Services introduced the budget for this Directorate prior to a general debate.

     

    (12)       Mrs Dean proposed and Mr Chittenden seconded the following amendment:

     

     

    “We propose to keep Highways Maintenance at 2018-19 levels in order to ensure that road safety standards are preserved and to reduce the risks of additional problems and higher costs being subsequently incurred.

     

    Proposed increase in Highways Maintenance (Section 3 of the draft Budget Book page 43, line 68) - £100k

     

    Funded by reduction in Financing Items unallocated (Section 3 of the draft Budget Book page 49, line 103) - £100k.”

     

    (13)          The Leader in response to a request for clarification from Mrs Dean regarding the budget line “Highways Maintenance, Reviewing the level of spend on verges, as well as lit signs and bollards, maintenance” (Appendix A (ii) of the draft Budget Book page 63), gave an assurance on behalf of the Cabinet Member for Planning, Highways, Transport & Waste that the totality of that budget for highways maintenance would be used intelligently to keep the roads as safe as possible”,  Following the debate, the Chairman put to the vote the amendment set out in paragraph (12) above and the voting was as follows:

     

    For (13)

     

    Mr R Bird, Mr I Chittenden, Ms K Constantine, Mr D Daley, Mrs T Dean, Mr T Dhesi, Mr D Farrell, Mr P Harman, Mr A Hook, Mr B Lewis, Ida Linfield, Dr L Sullivan, Mr M Whybrow

     

    Against (60)

     

    Mrs A Allen, Mr M Angell, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Mr D Butler, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mr N Collor, Mr A Cook, Mr G Cooke, Mr P Cooper, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Ms S Hamilton, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr P Lake, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr P Messenger, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr D Pascoe, Mr M Payne, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright.

     

    Abstain (0)

     

    Amendment lost

     

    (14)       Mr Bird proposed and Mrs Dean seconded the following amendment:

     

     

    “We propose to take steps in 2019-20 to maintain and enhance Library access and thus offset proposed reductions in Library opening hours. We therefore propose to take forward the 3 current pilot schemes (in Deal, Higham and Paddock Wood libraries) by identifying 20 additional libraries which are suitable for Library Extra.

     

     The total cost of £1m will be initially funded through short-term borrowing but we will seek to defray these costs through use of developer contributions (currently c. £50 per property is allocated to Library Services) with the agreement of District Councils.

     

    Capital Budget:

     

    Proposed new Capital Investment Plan GET – Library Extra (Section 1 of the draft Budget Book pages 13 to 20) - £1,000k

     

    Funded by new borrowing to be including in the financing of the GET capital investment plan - £1,000k

     

     Revenue Consequences:

     

    The additional borrowing will require ½ year’s interest of £20k to be funded within the financing items revenue budget (Section 3 Revenue Budget Key Services for GET – page 49, line 102 of the draft Budget Book). This will be offset within this budget by increased draw down from reserves of £20k in 2019-20.

     

    Any longer-term revenue consequences to set aside Minimum Revenue Provision and full year debt costs, which are not met by Developer Contributions, would need to built into the Medium Term Financial Plan (not subject to Council approval), these would be long term consequences for the useful life of the additional assets.”

     

     

    (15)       Following the debate, the Chairman put to the vote the amendment set out in paragraph (14) above and the voting was as follows:

     

    For (13)

     

    Mr R Bird, Mr I Chittenden, Ms K Constantine, Mr D Daley, Mrs T Dean, Mr T Dhesi, Mr D Farrell, Mr P Harman, Mr A Hook, Mr B Lewis, Ida Linfield, Dr L Sullivan, Mr M Whybrow

     

    Against (60)

     

    Mrs A Allen, Mr M Angell, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Mr D Butler, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mr N Collor, Mr A Cook, Mr G Cooke, Mr P Cooper, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Ms S Hamilton, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr P Lake, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr P Messenger, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr D Pascoe, Mr M Payne, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright.

     

    Abstain (0)

    Amendment lost

     

    (16)       Mr Whybrow proposed and Mr Chittenden seconded the following amendment:

     

    “The PROW team manages a 6,900km network with an asset value of £107m. Maintenance of the network is reliant on a pro-rata allocation of the Department for Transport highways maintenance grant. The current maintenance backlog is estimated to be £3.2m and growing. Asset management principles indicate that KCC should be spending £2.1m per annum on the asset. £0.9m per annum is identified as the floor level of funding to adequately manage risk to the Authority. Even at this level work is heavily prioritised and elements of the network asset are subject to managed decline. The PROW network is a significant asset contributing to Kent’s rural and visitor economy and provides critical access links to local communities and services. An uplift of £0.25m in the revenue budget would provide additional on-going revenue funding to supplement the £0.72m annual capital programme, allowing the additional resource to be used flexibly to achieve maximum benefit.

     

    PROPOSED SPEND: Increase the revenue budget for Public Rights of Way (PROW) (draft Budget Book Section 3 page 44 line 77) to help close the current shortfall in funding for essential maintenance by £0.25m to ensure that risks associated with failure are adequately managed.

     

    FUNDED BY: Higher than anticipated council tax base (use £0.25m of the £0.4m reduced draw-down from reserves on page 97 of appendix 8 to the Council report). “

     

     

    (17)       Following the debate, the Chairman put to the vote the amendment set out in paragraph (16) above and the voting was as follows:

     

    For (14)

     

    Mr R Bird, Mr I Chittenden, Ms K Constantine, Mr D Daley, Mrs T Dean, Mr T Dhesi, Mr D Farrell, Ms S Hamilton, Mr P Harman, Mr A Hook, Mr B Lewis, Ida Linfield, Dr L Sullivan, Mr M Whybrow

     

    Against (58)

     

    Mrs A Allen, Mr M Angell, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Mr D Butler, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mr N Collor, Mr A Cook, Mr G Cooke, Mr P Cooper, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr P Lake, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr P Messenger, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr D Pascoe, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright.

     

    Abstain (1)

     

    Mr M Payne

    Amendment lost

     

    (18)       As all of the amendments had been determined, the Chairman put to the vote the Motion as set out in paragraph (5) above and voting was as follows:

     

    For (56)

     

    Mrs A Allen, Mr M Balfour, Mr P Barrington-King, Mr P Bartlett, Mrs C Bell, Mrs P Beresford, Mrs R Binks, Mr T Bond, Mr A Bowles, Mr D Brazier, Miss S Carey, Mr P Carter, Mrs S Chandler, Mr N Chard, Mrs P Cole, Mr N Collor, Mr A Cook, Mr P Cooper, Mrs M Crabtree, Miss E Dawson, Mrs L Game, Mrs S Gent, Mr G Gibbens, Mr R Gough, Ms S Hamilton, Mr P Harman, Mr M Hill, Mr T Hills, Mrs S Hohler, Mr S Holden, Mr E Hotson, Mrs L Hurst, Mr J Kite, Mr R Long, Mr R Love, Mr G Lymer, Mr A Marsh, Ms D Marsh, Mr J McInroy, Mr D Murphy, Mr M Northey, Mr P Oakford, Mr J Ozog, Mr M Payne, Mrs S Prendergast, Mr K Pugh, Miss C Rankin, Mr H Rayner, Mr A Ridgers, Mr C Simkins, Mrs P Stockell, Mr B Sweetland, Mr I Thomas, Mr R Thomas, Mr M Whiting, Mr J Wright.

     

    Against (9)

     

    Mr R Bird, Mr I Chittenden, Mr D Daley, Mrs T Dean, Mr D Farrell, Mr A Hook, Ida Linfield, Dr L Sullivan, Mr M Whybrow

     

    Abstain (0)

     

    Motion carried

     

    (19)       RESOLVED that

     

    (i)            the County Council approve the following:

     

                (a)       Net revenue budget requirement of £986.374m for 2019-20.

    (b)       Capital investment proposals of £999.573m over three years from 2019-20 to 2021-22 together with the necessary funding and subject to approval to spend arrangements.      

    (c) The new Capital Strategy as set out in appendix 1 of this report including the Prudential Indicators.

    (d)       The Minimum Revenue Provision (MRP) Statement as set out in appendix 2 of this report.

      (e)       The flexible use of capital receipts referred to in paragraph 1.16 and as set out in appendix 3 of this report.

    (f)        The directorate capital programmes as set out in section 1 of the draft Budget Book published on 2nd January 2019 as amended by the changes in this report (see appendix 4 of this report).

    (g)       The directorate revenue budget proposals as set out in draft Budget Book published on 2nd January 2019 as amended by the latest updates included in this report (summarised in appendices 5, 6, 7 and 8 of this report).

    (h)       Delegate responsibility to Cabinet Members and Corporate Directors to manage the budget within the parameters set out in the Constitution and Financial Regulations (summary delegations to managers as set out in appendix 6 to this report).

                (i)         To increase Council Tax band rates up to the maximum permitted without a referendum as set out in table 2 in appendix 9 to this report.

    (j)         To levy the additional 2% social care precept (raising an additional

    £14,052,783 and taking the total social care precept to £50,650,799 out of precept set out in (k) below).

    (k)       The total Council Tax requirement of £709,996,344 to be raised through precepts on districts as set out in appendix 9 to this report.

    (l)         The Treasury Management Strategy as set out in appendix 11 of this report.

    (m)      The reforms to the lowest Kent Scheme pay ranges (KR2 and KR3) to meet the commitment that the lowest pay in the Kent Scheme matches the £9 per hour Foundation Living Wage from 1st April 2019.

    (n)       The new flexible payment scheme for the Young Persons Travel Pass allowing eight equal monthly instalments from August to March.

     

    (ii) In addition:

              (o)       To note that the Cabinet Member for Corporate and Democratic Services, in consultation with the Leader and Cabinet, will determine the TCP

    reward thresholds for staff assessed as successful, excellent, and outstanding, and the uplift to the Kent Ranges in accordance with the 0.5%/£1,200 principles.

    (p)       To delegate authority to the Corporate Director of Finance (in consultation with the Leader, Cabinet Member for Finance & Traded Services and the political Group Leaders) to resolve any minor technical issues for the final budget publication which do not materially alter the approved budget or change the net budget requirement. This includes approving the distribution of unallocated amounts within the approved budget.

    (q)       Changes made in (p) above to be reflected in the final version of the Budget Book (blue combed) due to be published in March.

    (r)        To note the uncertain financial outlook for later years with the likelihood that spending demands exceed the available funding and the necessity for further savings (largely unidentified at this stage).

     

    (In accordance with her declaration of interest, Dr Sullivan withdrew from the meeting and took no part in the debate or voting on the Youth Services amendment in paragraph (7) above.)

     

     

    Supporting documents: