Agenda item

Report of the Cabinet Member for Finance and Assets

 

Report to follow.

The Mayor explained the process, then invited that Cabinet Member for Finance and Assets to introduce the budget.  He began by highlighting the following points:

-        despite another 12 months of economic uncertainty and instability and the cost of living crisis, the budget is driven by support residents and investing in the town;

-        we are faced with severe national and local challenges – a housing crisis, climate crisis, broken NHS and social care systems, mental health crisis, ecological crisis, poverty crisis, and struggling education and police services;

-        the national debt is hovering around almost 100% of GDP; in 2022-23, the current government spent around £108bn servicing the debt, more than it spent on education, and over £100bn-worth of waste and fraud has been identified by the parliamentary accounts committee;

-        moving on to the challenges of the local authority funding crisis, for over a decade local authorities have been under unprecedented, sustained pressure with government funding reduced by around 50%, below-inflation council tax rises, and commercial-driven revenue savagely affected by the government’s mini-budget and economics which, with cost and demand pressures rising faster than funding, will, by 2024-25, have added £15bn (28.6%) to the cost of delivering council services;

-        eight authorities have issued 114 notices, unable to balance their budgets and facing bankruptcy, and a recent LGA survey shows that one in five authorities are likely to issue a 114 notice this year or next.  Financial resilience in the sector is at an all-time low as a result of the current government’s political choices;

-        it isn’t true to say that Cheltenham gets a good deal – it is the 19th worst-funded council in the country, despite delivering vital services and support to vulnerable residents.  The council’s financial resilience has been tested – we have innovated, changed the shape and structure of the council and how services are delivered, and continue to find efficiencies, savings and additional income to bridge the funding gap, which takes time, resources and no small effort from Cabinet colleagues and officers across the council.

 

He then moved on to the ways in which our strategy enables the council to continue to deliver services, support residents, invest in the town and put Cheltenham first:

-        keeping all our services running efficiently and effectively to support businesses, the daytime and night-time economy and our residents;

-        directing grant funding to support our leisure and cultural sector, also working collaboratively and in partnership, underpinning the town’s economic activity and preserving its uniqueness, loved by residents and visitors;

-        supporting vulnerable residents with our council tax discount scheme, benefit and money advice measures, working with Cheltenham’s food network, and supporting voluntary and community organisations through the third sector rent support policy;

-        working to reduce CO2 emissions whilst promoting biodiversity in Cheltenham’s parks and gardens;

-        leading the way with kerbside recycling and being the only district council in the country to offer its residents a town household recycling centre.

 

He said the budget underpins our statutory services, but there are also many examples of discretionary spending. The strategy aims to balance financial sustainability with investment for the future, putting Cheltenham first. This includes:

-        our continuing housing investment programme, to provide safe, secure and good quality housing, and recognising the need more affordable homes across the town;

-        investing in our communities to combat the climate crisis, including the successful launch of the Green Deal scheme, which has led to the installation of Cheltenham's largest solar array; community organisations and small businesses benefiting from retrofit grants; the retrofit of the leisure centre; and the launch of a new cycle hub for the town centre;

-        key investment by the council in the Golden Valley development not only plays a role in our financial sustainability, but also enables economic growth and much more - new homes, businesses, jobs, unique opportunities . The planning application has now been submitted for the innovation centre, mobility hub and housing.

 

He went on to say that growing inequality in our society is reflected in the nearly 4500 children and young people in our town living in poverty and whilst we cannot solve this crisis, the No Child Left Behind initiative is vital, already having touched the lives of over 7000 children across the town in recent times, by connecting people, businesses and organisations that care to give opportunity and hope to those children.

 

He ended by saying that the 2024-25 budget continues to navigate through the national economic turmoil and financial uncertainty, and reiterated that our priorities are supporting our residents, investing in our town, and putting Cheltenham first.

 

The budget was seconded by Councillor Hay, who reserved the right to speak.

 

Member Questions

Members thanked the Cabinet Member for Finance and Assets, and officers Paul Jones, Gemma Bell, Jon Whitlock and all the finance team for their tireless work on the budget.

 

In response to Members’ questions, the Cabinet Member for Finance and Assets confirmed that:

-        he hoped to give reassurance that the general fund balance could be maintained at a healthy level, in view of the predicted overspend of £70k sending it below £1m - last year’s budget report advised that it would be maintained at £1.5m and the revenue budget for 2023-24 was set accordingly.  Where budgets are stretched, overspend comes into play, and Appendix 7 shows that £629k is planned to go back into the general balance.  We need to take a prudent approach, however – there are plans to replenish the balance, but no knowing what the next 12 months may hold;

-        in preparing the budget, the finance team gets the necessary data on the economy from the Department of Levelling up, Housing and Communities, the Office of National Statistics, the Bank of England, and a range of outside organisations including financial advisers ArlingClose and PSTAX consultancy.  It also relies on the experience and knowledge of officers;

-        he is as confident as he can be about delivering revenue and additional income savings, based on data analysis and assessments – but anything can change;

-        he is aware of the county council’s drive to install EV charging points, with all six districts jointly bidding to get a cheaper deal, but this doesn’t necessarily work for CBC which is taking a different model in how it approaches the EV end supplier;

-        regarding the government’s £600m boost to local councils (£500m of which has been directed to social care), the council plans to spend £1395 per household per year; the usual government funding makes up £104 of this, of 7%.  The additional funding adds around £3.50 per household. 

 

Statements from Group Leaders

The Leader of the Conservative Group said he understand the intense pressures on local government, made worse by international situations which have sent shockwaves through all economies, but added that in 37 years as an officer and councillor, he had never known a time when councillors didn’t criticise the government of the day for lack of funding.

 

He said his group understood the need to recognise the real work situation and the challenges of this, and thanked Gemma Bell, Jon Whitlock and Paul Jones for preparing the budgets – his group proposed only modest amendments.

 

He went on to make the following observations:

-        separate to the budget, he couldn’t ignore the government’s £20m investment in the cyber park, saying it was unrealistic to say the town was being starved of funds, and as a county councillor he particularly welcomed the £600m additional funding, £500m of which would be spent on social care;

-        all councils would like more money but the greater emphasis was to use money safely;  blind criticism of the Secretary of State was unfair as there are many councils which do not spend their money well.  He added that CBC has a better team-working ethic than many other councils;

-        his party’s proposed amendments were modest, and familiar, but proposed because they think it is the right thing to do.  As the Leader said earlier, it is important to look after every penny, and the amendments help use money more sensibly on things that people really want – cleaner streets and more opportunities for recycling.

 

There were no other group leader statements.  

 

Proposed amendment from Conservative group

The Leader of the Conservative Group explained his group’s proposed amendments as follows:

-        the county council works with a Cabinet of nine, with a £616m budget;

-        the all-Member elections in May, due to the boundary change, could be continued going forward.  This would save money, avoid confusing residents, and reduce the workload for election staff, with a general and county council elections due in the next two years.  Cheltenham is the only council in Gloucestershire to hold two-yearly elections, and it is to be noted that the other two districts which hold whole council elections are both LibDem-led;

-        the savings would be modest, and many things in the budget are excellent,  but his group feel it is their duty and responsibility to propose these amendments;

-        as ward members, they hear many complaints about the filthy streets, and more sweeping could be done.  The savings on elections will finance 0.8% of an operative, or four days a week;

-        regarding the recycling centre, residents are frustrated and opposed to it being closed on Wednesdays, and we need to send a clear signal that we are serious about recycling. 

 

He hoped that these amendments would be considered sensibly and not simply dismissed.

 

The amendments were seconded by Councillor Nelson, who reserved the right to speak.

 

Cabinet Member response

The Cabinet Member for Finance and Assets thanked Councillor Harman for the Conservative group’s amendments, and for providing them in advance to allow his group the opportunity to consider and discuss them.  He said that the Conservatives have been proposing the same amendments since 2018, and made the following comments:

-        he welcomed the £20m from the government, but this was capital spend towards the national infrastructure for which the town is paying, and not part of the revenue budget;

-        the council has changed in shape and size in the last few years, and does a lot more work than it used to and does it effectively – which is why the two additional Cabinet posts are needed;

-        two-yearly elections work for Cheltenham and give our residents a voice between general elections;

-        regarding the spending proposals, CBC is the only district council in the country running a town centre recycling centre, and is not going to sacrifice two Cabinet Members for it to be open for a few more hours a week;

-        we also have record recycling numbers, with the type of recyclates being collected from the doorstep growing;

-        although it could be said that street cleaning isn’t as good as it could be, an additional £22,700 in a £1.4m budget is negligible.  He will feed the facts into the review of the Ubico contract.

 

He concluded by saying that the LibDem group rejected the amendments.

 

Debate on amendments

Members had nothing further to add.

 

Seconder for amendments

Seconding the amendments, Councillor Nelson felt that four-yearly elections would be more efficient, as well as saving money, and said that the roads are a disgrace and additional street-cleaning is desperately needed. 

 

Councillor Harman thanked Councillor Nelson for her support and said that the reason his group returns to these proposals each year is because they are sticking to their principles and think it is the right thing to do – more efficient and less confusing for the electorate who don’t altogether understand what the county and the borough councils do, and reducing the risk of depressing the turn-out at elections.  His group is here to improve the lot of people in Cheltenham, and must do what they can in the limited envelope of opportunity to make Cheltenham more efficient and cleaner.

 

The Cabinet Member for Finance and Assets said his group would not support the amendments.

 

Vote on the Conservative Group’s amendments

 

Savings:

Reduce the cabinet size by two, saving £37k per annum

Adopt whole council elections, saving £25k per annum

 

Alternative spending made possible by the above:

Return the Swindon Road Recycling Centre to its previous hours - £35k

Top up street cleaning in targeted areas - £22.7k

 

Against: Andrews, Atherstone, Baker, Boyes, Britter, Chelin, Chidley, Clucas, Collins, Dobie, fisher, Harman, Harvey, Hay, Horwood, Jeffries, Lewis, McCloskey, Pineger, Tailford, Tooke, Wheeler, Wilkinson, Williams, Willingham

For:  Councillors Babbage, Harman, Nelson, Seacome.

Abstention:  Councillor Smith

NOT CARRIED

 

Debate on substantive motion

Members made the following comments:

-        the budget is welcome, and it is particularly pleasing to note that when many councils are in crisis and cutting back on planning services, CBC is currently recruiting two new conservation officers, a senior enforcement officer to deal with the backlog of enforcement cases, and a borough ecologist to help deliver more than the government’s 10% target of biodiversity net gain and provide a valuable resource for the whole council in tackling nature recovery and nature emergency in the country.  It is good financial management from the Cabinet Member for Finance and Assets and the Executive Director of Finance, Assets and Regeneration and their predecessors that make this possible, and puts the council in this strong position;

-        it is great that we are able to continue investment in the private rented sector, providing homes for those in need of affordable housing and a great landlord;

-        the recent No Child Left Behind awards ceremony celebrated the great work done by that organisation in creating community, making children feel valued and part of something unique.  Seven thousand children and families have been helped, and this is due to the stable budget, and a finance team that doesn’t look for short term quick fixes but for ways to make things better for all our residents, children, businesses, and organisations.  No Child Left Behind is a small part of this, but thanks are due to officers, leadership, the town, businesses, and organisations such as Punchline for their support and commitment.  Looking to the future, it is clear that the Golden Valley development will change the future of the town, providing apprenticeships, job opportunities and new homes;

-        all councillors want the best for the town, irrespective of their political parties, and it is frustrating that year after year, we cannot do more for the town due to various constraints and having our hands tied by council tax, and lack of government funding. It would be impossible to run a business like this, often acting blind while waiting for late government announcements.  Huge thanks to all local authority staff across the borough and county who do a remarkable job in challenging circumstances, often having to have difficult conversations and deal with complaints about decisions, year after year;

-        Cabinet Members are also to be thanked for the great job they do, and for their energy, knowledge and passion for their subjects; to suggest reducing their number is nonsense;

-        There is good news in the budget -  £4.5m in the private rented sector providing desperately-needed social housing, £80k for parks, more CCTV in the town, making it safer and increasing prosecutions for anti-social behaviour and littering;

-        The £20m from government for the Golden Valley development is not a blank cheque for CBC to spend as it wants, and was awarded in the second round of levelling-up funding – Cheltenham got nothing from the first round;

-        In the current economic climate, the budget proposed is brilliant, with the Golden Valley Development set to deliver 3000 new, low carbon homes, included 35% affordable, and 11 thousand brand new jobs, borne out of collaboration with partnerships, an internationally renowned development partner, government agencies, big industry, and academia, to name but a few;

-        the planning department does a wonderful job, but the conservation and enforcement posts referred to earlier are not new posts – officers have left and are being replaced;

-        it is good that the North Place planning application has been received, but should be noted that a few years ago, CBC was given the chance to bid for £3m government grant towards that application – if that had been pursued, the protected green fields in Leckhampton might have been saved from development;

-        it is not fair to say Cheltenham’s MP has not helped the town with funding its projects - £187m has come to Cheltenham through him.  It may be capital funding, but doesn’t include the costs of A417 or Junction 9; 

-        there is some fantastic climate change work in the budget, and it is important to note that the finance team has found a way to keep us on same budget as last year, with no cuts to climate investment and still spending money, prioritising investment in town and its future;

-        with an incredible degree of flexibility and creativity, the finance team has been able not only to balance the books but also to enable the unique green deal investment scheme which allows businesses to borrow money at a reduced rate to invest in climate adaptation in Cheltenham, delivering incredible investment at very low cost to the tax payer;

-        it is very concerning that our budget is predicated on potentially compromising our duty to the Equality Act, which seems to be where the government is going with its requirements to reduce spending on EDI.   Strong local government has always delivered good services for its people, and the government should be looking at how local government be strengthened to deliver what local people want in their areas.  Hopefully a new government will take a different approach. 

 

Seconder for budget

As seconder, the Leader made the following points:

-        of course government funding is acknowledged and welcome, but of the £95m spend on the Golden Valley, the government has contributed £20m, and of the £10m for the MX, government has contributed just over £3m.  The council also funds its own development team for £700k per annum.  These stark figures show the council’s huge commitment,  but we cannot achieve all our goals such as climate change and house-building in isolation, and strive to form and work with partnerships to bring forward economy, development and community.  The budget shows how we are growing the economy with more jobs, not just at Golden Valley, but also in other areas;

-        she is proud of what small our small authority does in EDI, and vehemently disagrees with any suggestion from government that this is a waste of money;

-        the budget is all about securing our future and young people’s and children’s  future;

-        thanks to Cabinet colleagues and officers who all work extremely hard, often unseen and unrecognised, and special thanks to the Cabinet Member for Finance and Assets for all the work and commitment he puts into his role.

 

Cabinet Member summing-up

The Cabinet Member for Finance and Assets thanked Members for their questions and debate, and also thanked the public for their response to the budget consultation – their contributions are always welcome.

 

He went on to make the following points:

-        with so much negativity in national politics, the country feels let down by the government.  Our budget focusses on our town, and its whole purpose is to help people - all that makes the town unique stems from its residents.  The budget secures our future and aims to overcome any challenges, investing in the people and the town; 

-        the finance team has to review and monitor the national economic situation constantly and works non-stop to do this.  Thanks to all officers, and the finance team especially.  Personal thanks the Executive Director for Finance and Assets, to Gemma Bell and Jon Whitlock for all their work and the depth of their knowledge, and exceptional professional advice and guidance;

-        thanks to all Members across the Chamber, the Leader, Cabinet colleagues and the LibDem group for their support.  As stated in the opening statement, the political choices  and priorities of the LibDem administration are clear - supporting residents, investing in the town, and putting Cheltenham first. 

 

RESOLVED THAT:

1.    the revised budget for 2023/24 which is reported as part of the budget monitoring process for 31 December 2023 in Section 6 is approved;

2.    the budget assessment by the Section 151 Officer at Appendix 2 is considered in agreeing the following recommendations:

3.    the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £237.68 for the year 2024/25 based on a Band D property (an increase of 2.99%), as detailed in paragraphs 9.1 to 9.6 is approved;

4.    the savings / additional income totalling £2,741,000 and the budget strategy at Appendix 4 is approved;

5.    the revenue growth items totalling £158,000 at Appendix 5 is approved;

6.    the capital programme at Appendix 6 is approved;

7.    the use of reserves and general balances and note the projected level of reserves, as detailed at Appendix 7 is approved;

8.    the programmed maintenance programme at Appendix 8 is approved;

9.    the Medium Term Financial Strategy (MTFS) detailed in Appendix 9 is approved;

10.the flexible use of capital receipts strategy as detailed in Appendix 10 is approved;

11.that the Council will remain in the Gloucestershire business rates pool for 2024/25 is noted;

12.the Pay Policy Statement for 2024/25, including the continued payment of a living wage supplement at Appendix 11 is approved;

13.the responses to the questions raised during the budget consultation in Appendix 12 are noted;

14.the proposed fees and charges schedule for 2024/25 at Appendix 13, subject to appropriate consultation where required are approved;

15.a level of supplementary estimate of £100,000 for 2024/25 as outlined in Section 18 is approved.

 

 

For:  Andrews, Atherstone, Baker, Boyes, Britter, Chelin, Chidley, Clucas, Collins, Dobie, Fisher, Harvey, Hay, Horwood, Jeffries, Lewis, McCloskey, Pineger, Smith, Tailford, Tooke, Wheeler, Wilkinson, Williams, Willingham.

Abstentions:  Councillors Babbage, Harman, Nelson and Seacome.