Agenda item

The purpose of the report is for the VFM O&S Committee to scrutinise the draft budget report and pass comments to the Executive ahead of its meeting on 4^th February. This report outlines the latest Medium Term Financial Plan and the draft General Fund Budget for 2020/21. The Financial Plan sets out the key work streams for the Council to focus on which, collectively, aim to address the significant shortfall in annual budget projected over the medium term which is estimated to grow to £5.4million per annum  or 40% of the total net service cost by 2023/24.

Recommendation

The Value for Money O&S Committee consider this report, particularly the draft budget for 2020/21, and pass comments and observations to the Executive

The Committee received a report outlining the latest Medium Term Financial Plan and the draft General Fund budget for 2020/21/ The Financial Plan set out the key work streams for the Council to focus on which, collectively, aimed to address the significant shortfall in annual budget projected

Peter Vickers, Head of Finance and property, introduced the General Fund budget and medium term financial plan (MTFP) report to the Committee. The report of the Budget was also considered alongside this item which the Portfolio Holder for Finance, Councillor Mark Merryweather introduced.

The Committee was advised that the MTFP had been updated to include the latest General Fund projections, emerging pressures, spending priorities, risks and opportunities. The Plan also set out Waverley’s strategy for addressing the projected budget shortfall over the next four years and for putting the council in a strong, sustainable financial position.

The Committee noted the report and discussed the five recommendations as outlined.

In relation to the proposed increase in Waverley’s element of the Council Tax, there was much discussion around whether or not this should be set to the maximum or to the rate of inflation. Councillor Jerry Hyman questioned the latter and felt that if they had said they would not raise council tax, why were they doing it now. The proposed increase was not a huge percentage but 1.3% was the rate of inflation, of which, this was above. He also questioned where the Council was with the staff pay negotiations and the real costs of appeals and judicial reviews. It was confirmed that although appeals were not a budgeted item, this did account for some of the council tax. An estimate of the cost of a pay award plus other inflation commitments, were incorporated within the draft budget.

Councillor Simon Dear asked about the proposal to increase fees and charges for car parking which was a particularly sensitive issue, this concern was also raised by Councillor Julia Potts. The car parking review had yet to be published but officers were already proposing a 2.9%increase. Officers advised that this income would not be generated from a blanket increase in all car park charges. Some charges would rise and some could reduce to increase usage and improve the environmental impact. The Council would take a strategic approach to charges in the light of the independent review recently commissioned, the outcome of which was expected to be considered by members early in 2020 and to take effect in 2020/21 although still in progress during the 2020/21 budget setting process. Of the additional income generated, some £100k, was earmarked to pay for the ongoing costs of delivering Waverley’s climate change emergency action plan.

The Committee was pleased to note that there would be no increase in charge for the green waste subscription. This charge would remain frozen at £65 which supported and in spirit of the Council’s climate change emergency declaration.

Councillor Jerome Davidson asked about investment properties and income streams arising from that, with particular concern in relation to Brightwells. He was advised that the MTFP included an assumption that WBC would succeed in increasing its property income by £300k p.a. for each of the next four years (20/21 to 23/24). 

Councillor Jenny Else raised concern about the increase to planning application fees and asked for reassurance that they could give an upgraded service. Zac Ellwood, Head of Planning and Economic development, advised that the fees were set nationally but it was acknowledged that performance should be improved to reflect the increase in charges.

Councillor David Beaman raised concern about business rates and how little was retained by Waverley. It was felt that they should campaign to retain more.

Councillor Carole Cockburn raised concern about the number of uncertainties and Councillor Peter Martin concurred and questioned whether the budget was robust enough. Tom Horwood, Chief Executive, agreed that there were a number of uncertainties and it would be a challenge. He, alongside other South East Councils, would be lobbying government and there were some serious debates to be had.    

Following discussion, the O&S Committee generally supported the following recommendations from the Executive to Council:-

1.    Support a 1.9% increase in Waverley’s element of the Council Tax Charge for 2020/21, equivalent to around 7p a week on a Band D property;

2.    Support to make no change to the Council’s existing Council Tax Support Scheme;

3.    Support the proposed Fees and Charges as shown at Annexe 4;

4.    Support the General Fund Budget for 2020/21 as described in this report, and in Annexes 2 and 3; and

5.    Support the General Fund Capital Programme as shown at Annexe 6.

Thanks was given to the Budget Strategy Working Group for the work it had done and contributions to the recommendations.