Report by the Director of Finance & Resources
1
There was submitted a report by the Director of Finance & Resources relative to the Revenue Budget and Council Tax for 2016/17 together with the relevant budget papers. The report provided members with an overview of the Council’s projected financial position for the year ahead and set out the information required for the Council to set its budget and Council Tax for 2016/17.
The report referred to the financial settlement for local government covering the period 2016/17 which had been announced on 16 December 2015 and indicated that the grant funding for Renfrewshire amounted to £303.471 million. The settlement figure included a number of planned adjustments by the Scottish Government predominantly arising from responsibilities linked to Children and Young People Act, Kinship Care, delivery of Getting It Right For Every Child (GIRFEC) and adjustments linked to the inclusion of funding within the settlement for the Council Tax Reduction Scheme and Discretionary Housing Payments. These adjustments to the grant settlement were linked to associated budgeted adjustments that were set out in Table 2.
The report advised that after adjusting for these areas, the Council’s 2016/17 grant figure had, on a like-for-like basis, decreased by 3.4% from 2015/16, with the Council’s share of the overall local government revenue funding settlement increasing marginally from 3.14% to 3.17%. Included as part of this settlement offer was grant conditional upon agreement to the continuation of the council tax freeze (£2.327 million) and the maintenance of the pupil: teacher ratio and probationer places (£2.7 million). The budget proposals outlined in the report provided sufficient resources to allow the specified condition on the pupil:teacher ratio and provided places for probationers to be met in 2016/17.
In addition to the direct revenue grant provided to the Council, 2016/17 would see the added complexity of an element of social care funding, confirmed as £8.779 million for Renfrewshire, provided via the health budget and Integration Joint Board (IJB) arrangements. Although this funding was to be directed to fund new cost burdens such as delivering the living wage across the provision of adult social care, progressing reductions in social care charging, it was also available to support wider budget pressures in adult social care including demographic and demand-led pressures. The budget proposals set out in the report provided for the £8.779 million of funding passing through in full to the IJB as part of the resources to be transferred for adult social care on 1 April 2016.
The grant offer from the Scottish Government, including the adult social care element, was subject to delivery of the specific conditions as set out in the report and any council that did not sign up to the full package of conditions and measures would not receive their share of £408 million which, for Renfrewshire, amounted to an estimated £13.8 million. Should a council sign up to the package and subsequently fail to deliver on any of the specific commitments on social care spend, including delivery of the £8.25 per hour living wage to care staff, national teacher targets or council tax levels then the Government had reserved its position to apply individual sanctions for authorities. In such circumstances steps would be taken to remove access to or recover some or all of the additional funding support earmarked to deliver the specific measure or measures. If it proved necessary to apply a sanction then the Government had indicated that this would be applied in a proportionate manner to the scale of the failure.
Councillor Holmes tabled the motion on behalf of the Administration.
Councillor Holmes, seconded by Councillor Grady, moved:
“1. That this Administration’s fourth budget will build further on its commitments to invest in economic regeneration, local communities and support the most vulnerable in Renfrewshire.
2. That as recommended by the Director, these budget proposals take a holistic view of resources available, and include the proposed use of the £7.300 million of available capital resources outlined in Agenda item 2.
3. Further, it is agreed that £0.700 million will be drawn from unallocated general fund balances to support these budget proposals and that in line with the recommendations of the Director, that the balance of £1.302 million anticipated to be in excess of £7 million on the closure of the 2015/16 accounts, be transferred to the Investment Programme Capital Fund to provide additional debt smoothing flexibility in 2017/18 leaving unallocated general fund balances at the recommended minimum level of £7 million moving into 2016/17.
4. On Regeneration this budget commits a further £6 million of capital resources, adding to the £1.5 million already being made available from our £5 million investment in pitches, to provide £7.5 million to support the re-provisioning of St James’s playing fields into a recreational town park and outdoor event space in conjunction with the delivery of an outdoor Regional Sports Facility in Ferguslie that will not only provide 21st century outdoor sports facilities but will be a catalyst for the delivery of sustained regeneration within the area. This project which is estimated to cost approximately £15 million to deliver in full, will be taken forward with a range of key partners including Renfrewshire Leisure, the University of the West of Scotland and St Mirren Football Club and this initial funding commitment by the Council represents a significant and clear statement of intent to put in place the necessary arrangements to deliver this key project. Further it is recommended that the Director of Development and Housing Services be instructed to take forward the development of a detailed project proposal in consultation with the key partners, the community and stakeholder groups and engages with appropriate national funding bodies with the intention of providing a full report to Council after the summer recess.
5. To protect services to the most vulnerable in Renfrewshire, agree to invest £8.779 million of resources in Adult Social Care Services as outlined in the Director’s report and which will form part of the resources being delegated to Renfrewshire Health and Social Care Partnership on the 1st April 2016. Further that as part of this delegation process, agree to commit £0.974 million of these resources to reduce the impact of assessed charges for non residential adult care provision through increasing the income threshold used in the charging assessment process by increasing the associated charging buffer from 16.5% to 25% and reducing the charging taper from 85% to 50%. Further, and in addition to the Council’s existing commitment to pay its own staff the living wage, that as part of this resource delegation, and within the constraints of the resources provided by the Scottish Government as part of the financial settlement, the Council agrees to work pro-actively and in partnership with adult social care providers commissioned by the Council to achieve the shared endeavour of securing the payment of the living wage at £8.25 per hour from the 1st October 2016 across all care staff providing services to the Council.
6. That £1million of capital resources, boosted by a further £1 million drawn from the Renfrew Common Good Fund and £0.250 million drawn from the Paisley Common Good Fund, are directed to provide £2.250 million to support major investment in Parks across Renfrewshire. Further that the Director of Community Resources be instructed to take forward the development of a detailed and prioritised programme of investment in consultation with communities and key stakeholder groups, and where appropriate consider community led delivery mechanisms to maximise the opportunity to lever in other external sources of funding and to provide a full report to Council after the summer recess.
7. Recognising the importance of digital connectivity to a modern and thriving economy and population, agree that the provision of digital infrastructure and support across Renfrewshire be enhanced by £1 million of investment, funded £0.3 million from capital resources and £0.7 million from unallocated general fund balances. The investment will deliver free public access wi-fi provision in outdoor public spaces and key buildings in Johnstone, Paisley and Renfrew town centres whilst investing resources to extend the reach of digital participation and innovation initiatives across Renfrewshire’s communities, including the provision of support to communities not covered by superfast broadband from commercial suppliers and the national government programme to develop and take forward specific schemes to address this service gap, ensuring that high quality broadband access will reach more homes across Renfrewshire.
8. To agree the base budget assessment for all services for 2016/17 as recommended by the Director of Finance and Resources, and subject to agreement of item 5 above, agree a 2016/17 base budget of £381.413 million. Further to note that this provides sufficient resources to meet the grant condition to maintain the pupil teacher ratio in 2016 at 2015 levels as measured as part of the school census exercise carried out each September.
9. To agree to make provision of £0.769 million in 2016/17 for pay inflation and make no provision for general non-pay inflation, as recommended by the Director of Finance and Resources.
10. Subject to paragraph 16 below, agree to a 2.5% increase on charges for 2016/17.
11. To agree the resource allocations for 2016/17 for all services, as amended by these proposals.
12. To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
13. Subject to agreement of the above, to agree that the council tax for 2016/17 be set at £1,164.69 for Band D subjects, representing a freeze on the 2015/16 levels, and for all bandings to be set at:
Council Tax
Band 2016/17
A 776.46
B 905.87
C 1,035.28
D 1,164.69
E 1,423.51
F 1,682.33
G 1,941.15
H 2,329.38
14. That the council tax discount regime for empty and unfurnished properties be changed under discretionary powers available to the Council, providing the mandatory 100% discount period of 6 months, a 10% discount for the next 6 months, moving to a 100% levy applying after 1 year unless the property is being actively marketed for sale or rent, in which circumstances the 10% discount will apply for a further period of up to 12 months after which the 100% levy would apply. Further, agree that the change to the existing discount arrangements will take effect from 1st July 2016, providing an appropriate period of notice to affected homeowners and that the Director of Finance and Resources be instructed to develop and provide to the Finance and Resources Policy Board in May, a detailed policy for approval to support the effective operational application of the change.
15. Subject to agreement of points 1 – 14 above, agree that the Council’s budget is underpinned by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement to ensure the Council accesses its full grant entitlement.
16. To agree to increase charges for services by 2.5% (as detailed in paragraph 10 above) or where appropriate by the rate set in national regulations or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised to round the charge up or down to a figure deemed by them appropriate, and to note the requirement of financial code 14a that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased they will make specific recommendations in this regard to the appropriate Board. The Council therefore agrees that when a Director carries out such a review and believes a charge for goods or services should be levied greater than the agreed increase of 2.5% or the rate set in national guidance, he or she will be entitled to make such recommendations to the appropriate Board for approval, notwithstanding the increase detailed in paragraph 10.”
Councillor K MacLaren tabled an amendment.
Councillor K MacLaren, seconded by Councillor Lawson, moved as an amendment:
“1. That as recommended by the Director, these budget proposals take a holistic view of resources available, and include the proposed use of the £7.300 million of available capital resources outlined in Agenda item 2.
2. Agree to invest £8.779 million of resources in Adult Social Care Services as outlined in the Director’s report and which will form part of the resources being delegated to Renfrewshire Health & Social Care Partnership on the 1 April 2016. Further, that as part of this delegation process, agree to commit £0.374 million of these resources to reduce the impact of assessed charges for non residential adult care provision through increasing the income threshold used in the charging assessment process by increasing the associated charging buffer from 16.5% to 25%. Further, that as part of this resource delegation, and within the constraints of the resources provided by the Scottish Government as part of the financial settlement, the Council agrees to work pro-actively and in partnership with adult social care providers commissioned by the Council to achieve the shared endeavour of securing the payment of the living wage at £8.25 per hour from the 1 October 2016 across all care staff providing service to the Council.
3. Agree to draw £1.8 million for unallocated general fund balances for the following investment:
• £100,000 investment in 2016/17 to support initiatives to tackle bullying within all schools in Renfrewshire.
• £1,500,000 investment in 2016/17 to support environmental improvement programmes including recycling across Renfrewshire to improve the cleanliness of our local environment, particularly in our towns and villages.
• £200,000 investment to freeze charges for council services at their current rate.
4. Subject to investment proposals outlined in 3 above and in line with the recommendations of the Director, any unallocated general fund balances in excess of £7 million on the closure of the 2015/16 accounts, be transferred to the Investment Programme Capital Fund to provide additional debt smoothing flexibility in 2017/18 leaving unallocated general fund balances at the recommended minimum level of £7 million moving into 2016/17.
5. Utilise existing resources to re-join the Convention of Scottish Local Authorities (CoSLA) from the 1 April 2016 to ensure that Renfrewshire is not left out in the cold again during the discussions on the allocation of local government finance.
6. To allocate £7.3 million from the Strategic Asset Management Fund as follows
• £2.3 million additional investment in public parks, play facilities and open spaces;
• £5 million additional investment in roads infrastructure, improving road conditions across Renfrewshire.
7. To agree the base budget assessment for all services for 2016/17 as recommended by the Director of Finance & Resources, and subject to agreement of item 2 above, agree a 2016/17 base budget of £381.413 million. Further, to note that the provides sufficient resources to meet the grant condition to maintain the pupil teacher ratio in 2016 at 2015 levels as measured as part of the school census exercise carried out each September.
8. To agree to make provision of £0.769 million in 2016/17 for pay inflation and make no provision for general non-pay inflation, as recommended by the Director of Finance & Resources.
9. To agree the resource allocations for 2016/17 for all services, as amended by these proposals.
10. To agree the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repair costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions.
11. Subject to agreement of the above, to agree that the council tax for 2016/17 be set at £1,164.69 for Band D subjects, representing a freeze on the 2015/16 levels, and for all bandings to be set at:
Council Tax
Band 2016/17
A 776.46
B 905.87
C 1,035.28
D 1,164.69
E 1,423.51
F 1,682.33
G 1,941.15
H 2,329.38
12. That the council tax discount regime for empty and unfurnished properties be changed under discretionary powers available to the Council, providing the mandatory 100% discount period of 6 months, a 10% discount for the next 6 months, moving to a 100% levy applying after 1 year unless the property is being actively marketed for sale or rent, in which circumstances the 10% discount will apply for a further period of up to 12 months after which the 100% levy would apply. Further, agree that the change to the existing discount arrangements will take effect from 1 July 2016, providing an appropriate period of notice to affected homeowners and that the Director of Finance & Resources be instructed to develop and provide to the Finance & Resources Policy Board, a detailed policy for approval to support the effective operational application of the change.
13. Subject to agreement of points 1 – 12 above, agree that the Council’s budget is underpinned by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement to ensure the Council accesses its full grant entitlement.”
ADJOURNMENT
The meeting adjourned at 9.55 am and reconvened at 10.05 am.
DECLARATIONS OF INTEREST
Councillor Audrey Doig declared a financial interest in items 1and 2 of the agenda as she was an employee of Renfrewshire Leisure Limited, left the meeting and took no part in the discussion or voting thereon.
Councillor Andy Doig declared a financial interest in items 1and 2 of the agenda as he was the spouse of an employee of Renfrewshire Leisure Limited, left the meeting and took no part in the discussion or voting thereon.
ADJOURNMENT
The meeting adjourned at 10.15 am and reconvened at 10.25 am.
On the roll being called, the following members voted for the amendment: Councillors Perrie, McEwan, Lawson, Mylet, K MacLaren, M MacLaren, McGurk, McGee, Noon, M Brown, McQuade and Nicolson.
The following members voted for the motion: Councillors B Brown, Murrin, M Devine, Grady, J Sharkey, M Sharkey, Kelly, Williams, E Devine, Glen, Henry, M Macmillan, Caldwell, Hood, I McMillan, Bibby, Gilmour, Clark, Provost Hall, Councillors Holmes, Harte and Mullin.
The following members abstained: Councillors Mack, McCartin and J MacLaren.
12 members having voted for the amendment, 22 members having voted for the motion and 3 members having abstained, the motion was accordingly declared carried.
DECISION:
(a) That this Administration’s fourth budget will build further on its commitments to invest in economic regeneration, local communities and support the most vulnerable in Renfrewshire;
(b) That as recommended by the Director, these budget proposals take a holistic view of resources available, and include the proposed use of the £7.300 million of available capital resources outlined in Agenda item 2;
(c) That further, it be agreed that £0.700 million will be drawn from unallocated general fund balances to support these budget proposals and that in line with the recommendations of the Director, that the balance of £1.302 million anticipated to be in excess of £7 million on the closure of the 2015/16 accounts, be transferred to the Investment Programme Capital Fund to provide additional debt smoothing flexibility in 2017/18 leaving unallocated general fund balances at the recommended minimum level of £7 million moving into 2016/17;
(d) That, on Regeneration this budget commits a further £6 million of capital resources, adding to the £1.5 million already being made available from our £5 million investment in pitches, to provide £7.5 million to support the re-provisioning of St James’s playing fields into a recreational town park and outdoor event space in conjunction with the delivery of an outdoor Regional Sports Facility in Ferguslie that will not only provide 21st century outdoor sports facilities but will be a catalyst for the delivery of sustained regeneration within the area. This project which is estimated to cost approximately £15 million to deliver in full, will be taken forward with a range of key partners including Renfrewshire Leisure, the University of the West of Scotland and St Mirren Football Club and this initial funding commitment by the Council represents a significant and clear statement of intent to put in place the necessary arrangements to deliver this key project. Further it is recommended that the Director of Development and Housing Services be instructed to take forward the development of a detailed project proposal in consultation with the key partners, the community and stakeholder groups and engages with appropriate national funding bodies with the intention of providing a full report to Council after the summer recess;
(e) That to protect services to the most vulnerable in Renfrewshire, agree to invest £8.779 million of resources in Adult Social Care Services as outlined in the Director’s report and which will form part of the resources being delegated to Renfrewshire Health and Social Care Partnership on the 1st April 2016. Further that as part of this delegation process, agree to commit £0.974 million of these resources to reduce the impact of assessed charges for non residential adult care provision through increasing the income threshold used in the charging assessment process by increasing the associated charging buffer from 16.5% to 25% and reducing the charging taper from 85% to 50%. Further, and in addition to the Council’s existing commitment to pay its own staff the living wage, that as part of this resource delegation, and within the constraints of the resources provided by the Scottish Government as part of the financial settlement, the Council agrees to work pro-actively and in partnership with adult social care providers commissioned by the Council to achieve the shared endeavour of securing the payment of the living wage at £8.25 per hour from the 1st October 2016 across all care staff providing services to the Council;
(f) That £1million of capital resources, boosted by a further £1 million drawn from the Renfrew Common Good Fund and £0.250 million drawn from the Paisley Common Good Fund, are directed to provide £2.250 million to support major investment in Parks across Renfrewshire. Further that the Director of Community Resources be instructed to take forward the development of a detailed and prioritised programme of investment in consultation with communities and key stakeholder groups, and where appropriate consider community led delivery mechanisms to maximise the opportunity to lever in other external sources of funding and to provide a full report to Council after the summer recess;
(g) That recognising the importance of digital connectivity to a modern and thriving economy and population, it be agreed that the provision of digital infrastructure and support across Renfrewshire be enhanced by £1 million of investment, funded £0.3 million from capital resources and £0.7 million from unallocated general fund balances. The investment will deliver free public access wi-fi provision in outdoor public spaces and key buildings in Johnstone, Paisley and Renfrew town centres whilst investing resources to extend the reach of digital participation and innovation initiatives across Renfrewshire’s communities, including the provision of support to communities not covered by superfast broadband from commercial suppliers and the national government programme to develop and take forward specific schemes to address this service gap, ensuring that high quality broadband access will reach more homes across Renfrewshire;
(h) That the base budget assessment for all services for 2016/17 as recommended by the Director of Finance and Resources be agreed, and subject to agreement of item 5 above, agree a 2016/17 base budget of £381.413 million. Further to note that this provides sufficient resources to meet the grant condition to maintain the pupil teacher ratio in 2016 at 2015 levels as measured as part of the school census exercise carried out each September;
(i) That it be agreed to make provision of £0.769 million in 2016/17 for pay inflation and make no provision for general non-pay inflation, as recommended by the Director of Finance and Resources;
(j) That subject to paragraph (p) below, agree to a 2.5% increase on charges for 2016/17;
(k) That the resource allocations for 2016/17 for all services be agreed, as amended by these proposals;
(l) That it be agreed that the detailed Revenue Estimates for all services be amended to reflect these proposals and the necessary allocation of central support costs, central repairs costs, capital charges, specific grants and loan charges provision with Directors authorised to take any action necessary to implement these decisions;
(m) That, subject to agreement of the above, to agree that the council tax for 2016/17 be set at £1,164.69 for Band D subjects, representing a freeze on the 2015/16 levels, and for all bandings to be set at:
Council Tax
Band 2016/17
A 776.46
B 905.87
C 1,035.28
D 1,164.69
E 1,423.51
F 1,682.33
G 1,941.15
H 2,329.38
(n) That the council tax discount regime for empty and unfurnished properties be changed under discretionary powers available to the Council, providing the mandatory 100% discount period of 6 months, a 10% discount for the next 6 months, moving to a 100% levy applying after 1 year unless the property is being actively marketed for sale or rent, in which circumstances the 10% discount will apply for a further period of up to 12 months after which the 100% levy would apply. Further, agree that the change to the existing discount arrangements will take effect from 1st July 2016, providing an appropriate period of notice to affected homeowners and that the Director of Finance and Resources be instructed to develop and provide to the Finance and Resources Policy Board in May, a detailed policy for approval to support the effective operational application of the change;
(o) That, subject to agreement of paragraphs (a) - (n) above, agree that the Council’s budget is underpinned by appropriate decisions and makes appropriate provision to meet the specified commitments in the package of conditions linked to the Council’s grant settlement to ensure the Council accesses its full grant entitlement; and
(p) That it be agreed to increase charges for services by 2.5% (as detailed in paragraph (j) above) or where appropriate by the rate set in national regulations or guidance, or where charges are based on full cost recovery by the appropriate increase to maintain this position, subject to Directors being authorised to round the charge up or down to a figure deemed by them appropriate, and to note the requirement of financial code 14a that Directors review the amounts their departments charge for goods or services and if they think any charge needs to be increased they will make specific recommendations in this regard to the appropriate Board. The Council therefore agreed that when a Director carries out such a review and believes a charge for goods or services should be levied greater than the agreed increase of 2.5% or the rate set in national guidance, he or she will be entitled to make such recommendations to the appropriate Board for approval, notwithstanding the increase detailed in paragraph (j).
ADOURNMENT
The meeting adjourned at 11.50 am and reconvened at 12 noon.
SEDERUNT
Councillor Clark left the meeting during consideration of the following item.