Minutes:
Councillor Hebb introduced the
report and stated that the report had originally been brought
before Cabinet in January, before being submitted to the Corporate
Overview and Scrutiny Committee for their review. He explained that
the Council had a statutory duty to balance the Medium Term
Financial Strategy, and this had been balanced since 2016 when the
Conservatives had formed a minority administration. He explained
that before this point, the Council had been in deficit, but the
three main political parties had worked together during this period
to balance the budget. He stated that since 2016 reserves had been
trebled, and many years had seen budget surpluses which had helped
to fund areas such as adult social care and mental health.
Councillor Hebb explained that due to the events of 2020 and the
winding down of the investment strategy over the next 2-8 years,
the Council would now have to work hard to balance the budget. He
explained that all 49 members had previously agreed with the
investment strategy, which had brought many benefits and investment
to Thurrock. He then moved on and explained the commentary that had
been received at the scrutiny meeting. He explained that the first
comment the Corporate Overview and Scrutiny Committee had made
related to the need to seek funding from central government, to
ensure Thurrock had continued support. Councillor Hebb explained
that central government had already provided Thurrock with
£14million of support, £30million of which had been
distributed to businesses as grants. He added that central
government had also spent billions of pounds on the furlough scheme
to ensure people could keep their jobs throughout the pandemic.
Councillor Hebb stated that central government funds still came
from the taxpayer, but the Council had been submitting their
accounts to the Ministry of Housing, Communities and Local
Government (MHCLG) monthly throughout the pandemic. He explained
that as reserve levels had now trebled, part of the ‘rainy
day’ fund would be expected to be used to balance the budget
and fund services. He explained that Thurrock did continue to have
conversations with central government surrounding funding and
support, as well as through mechanisms such as the LGA,
cross-borough Finance Portfolio Working Groups, and the IRRV.
Councillor Hebb then moved onto the second point raised by the
Corporate O&S Committee, which concerned the rise in council
tax. He explained that Thurrock had frozen council tax for some
years, whilst other neighbouring councils had risen their levels
dramatically, such as the London Mayor who had raised council tax
by 31%. He explained that officers had been instructed by all
elected members to increase investments to reduce council tax.
Councillor Hebb outlined that 70% of the borough would only pay an
additional 99p per week in council tax, with the remaining 30% of
borough paying an additional £2 per week. He stated that
support would be available for those residents who may struggle to
pay their council tax. He highlighted that the majority of the
council tax raise would help to fund adult social care and relieve
pressure and vulnerability within the sector.
Councillor Hebb addressed the issue raised by Corporate O&S
surrounding wider opportunities for commercial income. He stated
that the finance team constantly worked to assess the fees and
charges level, and ensure market driven decisions were made. He
commented that Thurrock were also considering other ways of
working, such as sharing resources with other councils, and working
with the voluntary sector and private sector to deliver certain
services. Councillor Hebb then addressed the final point raised by
Corporate O&S Committee regarding the acceleration of service
reform. He stated that the Council had worked hard on the service
review since 2016 to ensure that services did not have to make hard
and fast cuts quickly, but due to the investment strategy ending,
the service review would need to be accelerated.
Councillor Hebb moved on and outlined the capital programme for
2021/22. He stated that £19million of projects and programmes
had been evaluated and postponed or cancelled due to the pandemic.
He explained that the Council would still be supporting
infrastructure goals such as housebuilding and communities, for
example by investing £1million into the Local Plan, and
supporting the Thames Freeport bid. He explained that this work
could help support businesses and residents, and therefore increase
council tax and business rate collection. He stated that other
projects would also continue to be funded, such as the A13 widening
scheme, East Facing A13 access, the Purfleet regeneration scheme
and the Stanford-le-Hope Interchange project, as well as HRA and
highways infrastructure.
Councillor Hebb summarised and stated that difficult changes lay
ahead for the Council, but he felt that Thurrock could navigate
through the crisis and find positive outcomes.
Councillor Redsell then read her statement. She thanked Cabinet for
allowing her to comment on fees and charges, as well as the
sporting strategy. She apologised for the delay, but wished to put
her views as CGS Chair, as well as the Committee’s thoughts
before Cabinet, on behalf of all clubs and sporting venues that had
to pay fees and charges. She thanked the government for the help
they had given to sports clubs through grants, and hoped that the
Portfolio Holder would ensure help continued to be given to sports
clubs that needed it. She encouraged the Portfolio Holder to meet
and engage with sports clubs, to ensure that young people and
coaches across Thurrock continued to thrive. She felt that sports
clubs coaches needed support, which would help Thurrock achieve its
aims regarding increasing exercise opportunities for young people.
She also felt that sports would be needed more than ever once the
pandemic had ended, and thanked those who worked hard to maintain
their clubs. Councillor Redsell summarised and felt that the fees
and charges for sports clubs needed to be fair to all, and thanked
Cabinet for listening to her statement.
The Leader thanked Councillor Redsell for her statement, and stated
that a response would be provided at the fees and charges report
item.
Councillor Watkins thanked Councillor Hebb and the finance team for
their hard work on the budget. He stated that the environment team
had seen benefits from previous budgetary surpluses, as these
surpluses had helped fund schemes such as Clean It, Cut It, Fill It
and Kerb It. He added that the Keep Britain Tidy scores had also
improved since 2016 and were now regularly above average. He felt
that these improvements in the department had been due to the
investment strategy, which had brought money into the council and
had been supported by all members. Councillor Watkins highlighted
the Waste Strategy, which he felt had been agreed by a cross-party
group and then criticised by opposition members, and he felt that
all political parties should now work together to help the borough
through the pandemic crisis. He stated that the environment team
would continue to work to deliver and manage services. He also
thanked Councillor Redsell for her comments, and stated that he
would address these during Item 12 on fees and charges.
The Leader also thanked Councillor Hebb and the team for their hard
work on the budget. Councillor Halden highlighted that before 2016
when the Conservatives had formed a minority administration, the
Council had had little reserves, which he felt would have
exacerbated the current COVID budgetary issues. He also added that
it was good to see investment continuing in Tilbury, such as the
redevelopment of the Manor School, the new Tilbury IMC, and the
Tilbury Town Board, which would help to regenerate the area and
showed that the budget covered the entirety of the borough. The
Leader agreed and stated that lots of money had been invested in
the borough during the pandemic, which included 67% increase in
adult social care, and this would be partly funded through the
additional 99p per week council tax increase for the majority of
residents. He added that the rise in council tax would help those
most vulnerable during lockdown, and would increase opportunities
in the borough. He explained that the investment strategy would
also start to wind down, but highlighted that this strategy had
been agreed by all members and had been supported by organisations
outside the council. He stated that the investment had helped
Thurrock fund services, and any borrowing had always been paid back
on time plus interest, which had helped the councils who had
invested in Thurrock improve their own services too. The Leader
added that every local authority had been affected by the pandemic,
and local authorities were now more cautious with investments and
loans.
RESOLVED: That Cabinet:
1. Considered the comments from the Overview and Scrutiny Committee
as set out in section 12 of the report.
2. Supported the proposed council tax increase of 1.99%.
3. Supported a 3% Adult Social Care precept increase.
4. Recommended to Full Council the capital proposals set out in
this report and appendices.
5. Endorsed the Early Years Funding Formula for 2021/22, as shown
in section 9 and Appendix 5.
6. Noted the proposed updated to the Medium Term Financial Strategy
and the remaining deficits in future years.
Reason for decision: as outlined in
report.
This decision is subject to call-in.
Supporting documents: