Agenda item

OSDM.3/16   

Members considered a report that asked for consideration of the draft Budget proposals for 2017-18 and that presented the outcomes of the recent Members’ Budget Workshop. 

In presenting this agenda item, the Section 151 Officer tabled an additional paper that outlined a summary of the changes to the report that had been initially considered by the Executive at its meeting on 15 December 2016 (Minute E.50/16 refers).

In discussion, reference was made to:-

(a)   the 2017/18 Local Government Finance Settlement.  Having been informed that the provisional settlement for the Council would see funding reduced by a further 39.3% between now and 2019/20, a number of Members expressed their deep frustrations at this announcement.  In acknowledging these concerns, the Section 151 Officer advised that she had compiled a strongly worded consultation response letter to the Department for Communities and Local Government, which she would ensure was circulated to all Members.  When questioned, the Section 151 Officer advised that many district councils were in the same position as the Council whereby they would be in receipt of no Revenue Support Grant from Central Government by 2018;

(b)   the Development Management service.  A Member stated that, such was the reputational damage incurred through the service currently being provided by Development Management, that a further detailed review should be undertaken by the Overview and Scrutiny Panel.  In reply, other Members referred to the improved performance figures that were being monitored monthly by the Development Management Committee and the Overview and Scrutiny Panel already being committed to a review of progress being made on the Peer Review Action Plan.

A Member also expressed the view that the adopted T18 Model was not conducive to the Development Management service.  Whilst officers acknowledged that the new Model had not initially worked as intended for the service, this was now being rectified.  For example, the current practice whereby Specialists had still been validating planning applications would cease within the next two weeks;

(c)    the additional planning resources.  Since the Development Management service was already under immense pressure, some Members questioned whether the proposed additional resources would be sufficient.  In response, it was noted that the Senior Leadership Team had considered this matter in great depth and the proposed increases in resource represented their best predictions of future service need to ensure that performance improvements are maintained.  Nonetheless, some Members were of the view that there was a requirement for more resources in the service and a motion was PROPOSED and SECONDED as follows:

‘That an additional cost pressure to that proposed in the draft budget papers of £50,000 be added to reflect a permanent increase to the staffing establishment for dedicated Development Management service resource for South Hams District Council.’

In support of the motion, some Members reiterated the massive resource pressures being suffered by the service.  In contrast, other Members felt that the predictions of the Senior Leadership Team should be trusted.

When put to the vote, the motion was declared LOST.

An alternative motion was then PROPOSED and SECONDED as follows:

‘That a cost pressure of £50,000 be added to reflect a permanent increase to the staffing establishment for an additional planning specialist and an additional Case Manager for Planning Enforcement.  (NOTE: this cost reflects the Council’s share of the cost for these shared staffing posts with West Devon Borough Council).’

When put to the vote, the motion was declared CARRIED.

(d)   increasing the Council Tax for 2017/18.  Whilst regrettable, there was unanimous support amongst Members to recommend that Council Tax be increased by £5 for 2017/18.  Such was the extent of the ongoing budget reductions from central government, that Members reluctantly felt it to be absolutely essential for the Council Tax Base to be built up as much as possible;

(e)   mitigating against Climate Change and flooding.  Having raised it at the recent Budget Workshop, a Member asked that consideration be given to measures being put in place to mitigate against climate change and flooding;

(f)     business rates.  It was noted that a Business Rates Revaluation had been undertaken that would come into effect from 1 April 2017.  The Section 151 Officer confirmed that this would result in the financial impact on the Council being cost neutral, with no increase in income to the Council.  In reply to a question, it was also confirmed that a large  Business Rates appeal for the Council was still ongoing;

(g)   Commercial Services.  The meeting was advised that there may be some additional budgetary pressures arising from legislative changes to Commercial Services.  If this was the case, then it was confirmed that these would be reported to the Executive at its meeting on 2 February 2017.  With regard to the projected £125,000 savings generated by the waste round review, a Member questioned why these were no longer attainable.  In reply, officers stated that the initial figures had been based upon a desktop exercise undertaken by consultants that had since proven to be unachievable.  As a consequence, the Waste and Recycling Task and Finish Group was currently looking at future service options with a view to reporting its findings to the Overview and Scrutiny Panel during the upcoming months;

(h)   the reduction in planning fee income.  It was noted that the main reason that income had reduced was attributed to the extensive reduction in large scale renewable energy related planning applications.  Officers proceeded to confirm that this trend was consistent throughout the South West region;

(i)     the Budget Scouring savings.  The Section 151 Officer confirmed that these savings had been identified through meetings between the relevant budget holder and their respective finance business partner and all parties were confident that the identified savings would be achieved.  However, the Section 151 Officer did also inform that these meetings had also identified some budget pressures;

(j)     town and parish councils being in receipt of paper copies of plans.  Whilst all clerks had been notified of the intention for paper copies of plans to no longer be posted to them, a Member requested an update as to whether this was still to take effect.  In response, officers gave a commitment to provide an update to Members on this matter after the meeting;

(k)    the recent Member Survey.  All Members were urged to complete the recently published Survey to help the Council inform its work in bringing forward and prioritising income and efficiency initiatives;

(l)     the £777,402 that had been transferred into an Innovation Fund.  Members were reminded that these monies (with the exception of £20,500) had already been committed to invest to earn projects (as outlined at paragraph 10.6 of the presented agenda report);

(m)  the T18 Programme payback period.  Whilst acknowledging that the Programme had delivered the required savings, the request was made for a report to be presented on this matter to a future Overview and Scrutiny Panel meeting;

(n)   the recommendations of the Joint Steering Group on the Local Authority Controlled Company (LACC).  In the event of the Council approving the recommendations regarding the LACC, a Member questioned what informal consideration had been given to alternative options.  In reply, the Leader advised that more information would become apparent at the Executive meeting on 2 February 2017;

(o)   the balance in the 2016/17 Budget Surplus Contingency Earmarked Reserve.  There was unanimous support amongst the meeting for the balance (amounting to £287,273) to be used to fill the 2017/18 Budget gap, thereby enabling time to identify future saving and/or income generation opportunities;

(p)   income generation opportunities from renewable energy sources.  The majority of Members repeated their earlier views whereby it would now be timely to revisit potential income generation opportunities from means such as Solar PVs on car parks and Council owned buildings and electric charging points in Council car parks.  Moreover, requests were made for the Panel to give consideration to the future use of Follaton House and officers agreed to give consideration to the merits of conducting a feasibility study on the development of small scale employment units for the use of small businesses.

It was then: