This presentation will outline the Council’s strategy to the 2024-25 Budget within the context of the Corporate Plan. The presentation will provide details of the approach to setting the budget for the next financial year and the broad impact this will have on the delivery of services.
Minutes:
Councillor Wearmouth, Deputy Leader and Cabinet Member for Corporate Services, provided a presentation on the Council’s Corporate Plan and budget for 2024-25 where the options for achieving a balanced budget were given. (A copy of the presentation would be enclosed with the signed minutes.) He outlined the consultation process taking place between 12 December 2023 and 26 January 2024 which included presentations at all 5 of the Local Area Committees, an online questionnaire, policy conference, briefings for the political groups and individual meetings, and an online Question and Answer session by the Leader on 31 January 2024.
The Council’s three priorities of Value for Money; Tackling Inequalities and Job Creation ran all through the proposed budget with more detailed information on proposed savings available within the Cabinet papers for the meeting on 16 January and further detail regarding initiatives and schemes would be presented at a meeting of the Corporate Services Overview and Scrutiny Committee which all Scrutiny members would be invited to.
Councils had four main sources of revenue, namely:
• Council Tax;
• Government grants;
• Business Rates; and
• Fees and charges for services
Members were advised that the Council constantly lobbied Government in relation to sustainable funding for local services. Increased pressures on budgets were in part due to rising energy costs and prices for supplies and services along with pay inflation. Savings would be made by reducing the cost of overheads and potential efficiencies in the way services were delivered and Members were advised there would be no cuts to front line services. The Council’s reserves were in a healthy position and could be used where necessary to manage any transition.
The background to the Council’s finances was provided with the baseline gross budget for 2023/24 as follows:-
· Enabling Services (Transformation) - £147.948 million - providing professional and technical services to support residents and businesses directly and enable frontline services.
· Adults - £235.033 million - supporting vulnerable adults to live independently; assessment and good quality care and support services; safeguarding vulnerable adults; and protecting care services.
· Children, Young People and Education - £269.210 million - providing good quality schools (with 94% currently rated good or outstanding); SEND provision; skills opportunities and supporting families; and investing in the future.
· Public Health, Inequalities and stronger Communities - £32.831 million- providing public health functions; Communities Together; leisure and culture; and partnerships with voluntary and community sector.
· Place and Regeneration - £131.699 million – supporting business start-up and growth; regenerating communities; investing in towns and villages; investing in jobs and skills development and highways maintenance and improvements.
In response to a question related to not being able to rule out compulsory redundancies for staff it was commented that it would not be the intention of the Administration to use compulsory redundancies as the reduction in the number of staff could usually be managed through a natural process such as staff retiring or leaving the Authority. Whilst it was possible that previously the budget for Adults Services had been larger than for Children’s Services, the numbers were accurate and reflected the increased spend on SEND and the investment in skills and schools.
There were various Council Tax schemes being operated by neighbouring authorities, however it was thought that Northumberland's scheme which offered discounts of 92% to 8%, was generous and straightforward for residents to understand. A hardship fund was also being provided and unspent funds from the previous year would also roll over giving a total of support of £26 million for residents, which was a huge element of the budget for those who needed the most help.
In response to a statement that the presentation lacked the detail a budget consultation should contain it was highlighted that information was available online and that the budget consultation survey was open to residents and Councillors and additional information had already been forwarded to Councillors with the opportunity to look in depth at the proposals at Scrutiny and Full Council. Further details in relation to services were then provided as follows:
Public Health, Inequalities and Stronger Communities
These services were impacted by rising energy costs and prices for supplies and services and like all services, budgets were impacted by pay inflation. Investment for a mobile library service vehicle was proposed through the capital programme. In terms of savings, it was proposed to deliver contract savings of £0.200 million and savings from BEST value for money reviews of £0.500 million. These proposals would contribute £0.700 million towards the Council’s balanced budget from a total budget for these services of £32.8 million. There were no reductions in these services proposed.
Children, Young People and Education
Budget pressures related to new children’s homes that were being built / acquired to keep Northumberland children in the county which would reduce the cost of out of county placements; additional funding required for short break services for disabled children; the increased pressure resulting from a mandatory inflationary increase of 12.50% introduced by the Department for Education for foster care and special guardianship allowances; and a significant increase in funding was required for external residential placements for children with complex needs. Schools and housing for disabled children would continue to receive capital investment. Savings would be achieved through contract savings; making best use of grants; safely managing demand for services; delivering savings from BEST value for money reviews; making straightforward and sensible efficiencies; delivering service reviews; and effectively managing staff vacancies. In summary these proposals would contribute £2.084 million savings towards the Council’s balanced budget from a total budget for these services of £269.2 million. No service reductions in these services were being proposed.
Adults
The Real Living Wage had been factored in for Social Care contract budgets however these services were also impacted by rising energy costs and prices for supplies and services along with pay inflation. Savings measures would include making best use of grants of £0.09 million; safely managing demand for services of £3 million by doing things different such as providing better services allowing people to continue to live independently and not in residential homes and driving value in care packages and providing better integrated responses to individual needs to reduce the dependence on the Council. New income would be generated giving a total saving of £3.63 million towards the Council’s total budget of £235 million. No service reductions in services were being proposed.
Proposals for the forthcoming year also included continuing to invest in the future of the county through the capital programme, including in Northumberland Fire and Rescue Service and modernisation of the Council’s Network Infrastructure which would help drive efficiencies and business opportunities. Wide Area Network provision in all Council buildings was to be provided which could possibly have links for business and schools to join. Significant savings were proposed through the BEST programme, procurement, maximisation of income generation and the management of staff vacancies. No cuts to frontline services were being proposed. Councillor Wearmouth urged residents and Councillors to complete the budget questionnaire.
Members welcomed the additional level of detail provided and stressed the need for the correct type of messaging being provided so that the public understood that savings could be achieved by investment and were reassured that no reduction in front line services would result from the proposals.