Agenda item

The Cabinet considered a joint report of the Corporate Director of Resources and the Director of Transformation and Partnerships which provided comprehensive financial information to enable Cabinet to make recommendations to full Council to agree the 2018/19 balanced revenue budget, an outline Medium Term Financial Plan MTFP(8) 2018/19 to 2021/22 and a fully funded capital programme. The report also included a review of the Council’s Discretionary Rates Relief and Business Rates Hardship Relief Policy and set out details of the mainstream primary and secondary funding formula for schools in 2018/19 (for copy see file of minutes).

In presenting the report the Corporate Director of Resources advised that the figures based in it were on the provisional settlement, and that as details of the final settlement had only been released yesterday any final adjustments would be reflected in the report for full council consideration. He pointed out that there had been late notification of one-off adult social care funding for 2018/19, and confirmation was awaited of individual local authority allocations. The Corporate Director thanked the staff, colleagues and members for their assistance in bringing this report together.

Cabinet members commented on the scale of the funding cuts that had already been made, and that it was anticipated that austerity would continue well into the next decade. Durham had already made savings of £209m, and was still estimated to make at least a further £44m. The unfairness in the distribution of the funding continued for Durham in comparison to other authorities, and this impacted on Durham’s spending power. It was pointed out that once again finding these savings was increasingly difficult, and all efforts were being made to protect front line services as far as possible.

It was disappointing that there was no additional funding for children’s social care, or funding the local government pay award which if accepted would represent a significant increase in the pay bill.  Although the late notification of one-off funding for adult social care was welcomed it was not recurring beyond 2018/19.

Details of the government’s increase in the council tax referendum limit to 3% to reflect cost pressures were noted and that the core spending power figures quoted by government assumed that all council’s increased council tax up to this new limit in 2018/19 and 2019/20. Published government figures for 2018/19 also assumed that the Adult Social Care precept would increase by 3% however Cabinet members noted that Durham were proposing a 2% increase.

Public consultation on the budget and council tax was undertaken with over 3,000 people being engaged in the process, and almost 80% of those providing views believed the councils approach to making savings was reasonable. The feedback from overview and scrutiny was welcomed and all were thanked for their input.

Cabinet members thanked officers for another year of accurately foresting, and diligent planning, and thanked the members and officers who had input into the process.

Resolved:

Upon a recorded vote being taken a unanimous vote in favour of the recommendations detailed in the report, subject to final adjustments to reflect the final settlement, being recommended for full council approval was reached by Cabinet members.