Agenda item

Mr Dave Shipton was in attendance for this item.

1.    Mr Oakford introduced the report which set out the updated and balanced draft revenue budget 2024-25 and MTFP 2024-27, proposed capital programme 2024-34, and draft Treasury Management Strategy. Mr Oakford highlighted the high-level differences which had been made to the initial report considered by the Committee in November 2023. Members were told that the main changes between the initial and revised Draft Budget 2024-25 could be found in Table 6. It was said that the draft revenue budget 2024-25 was balanced, however, there were still significant savings to be identified for 2025-26 and it was anticipated that there would continue to be a draw down on reserves in the second year of the Medium-Term Financial Plan 2024-27.

2.    Mr Dave Shipton told Members that the Provisional Local Government Finance Settlement 2024-25 announcement had been received on 18 December 2023. This confirmed that the Government had extended the flexibility to use capital receipts, to fund the revenue costs of reducing costs and improving efficiency, to March 2030. There was a further consultation on the permitted usages of capital receipts. The final settlement was expected to be announced before the Parliamentary recess on 9 February 2024 and Mr Shipton was hopeful that this could be included in the final draft revenue budget 2024-25 to be considered at County Council on 19 February 2024.

3.    In response to questions and comments from Members it was said that:

a)    KCC only retained 9% of the total business rate yield in the county. It was said that the Council was not exposed to volatility of business rates to the same extent as district councils which retained 40%. The business rate baseline contained in the Settlement was uplifted by inflation each year. It was also confirmed that KCC operated a business rate pool with a number of district councils which enabled the pool to bear some of the risk of changes to business rates.

b)    Regarding the saving proposal to ‘End Select Committees and Short Focused Inquiries’ as outlined in Appendix G, Mr Jeffrey confirmed that the Governance Working Party were looking at the potential for different working arrangements for Cabinet Committees, Select Committees, and task and finish groups within the current budgetary constraints. Members were told that there was no intention for the Governance Working Party to look at the work of the Civic Office, however, it was expected that there would be impact in this area in terms of the movement of staffing arrangements. 

c)    Mr Oakford confirmed that the Executive were strategically considering ways to tackle demand for Council services. This included a review of the ways in which statutory services were being delivered and a critical evaluation of discretionary services offered by KCC. It was said that the Council was continuing to lobby Government and local Members of Parliament for greater funding.

d)    There was no prescribed formula for establishing best value, as this was based on the consideration of economy, effectiveness and efficiency judgements. However, Mr Whittle confirmed that a report on the internal use of return-on-investment calculations could be circulated to the Committee outside of the meeting.

4.    RESOLVED:

a)    To note the updated revenue budget and MTFP, draft capital strategy and programme, and draft Treasury Management Strategy

b)    There were no proposed changes to the relevant sections of the budget related to the Committee’s portfolio area which were to be considered before the draft is finalised by Cabinet on 25th January 2024 and presented to Full County Council on 19th February 2024 for decision.

Dr Sullivan, Mr Hook and Ms Meade requested that their vote against the recommendation be noted.