Minutes:
Councillor Hebb introduced the
report and stated that a correction needed to be made to the first
sentence of point 4.7 of the report, as follows: “A comprehensive review of the service has led to the
identification of a number of targeted efficiencies across the
fieldwork and provider services, including the amalgamation of the
Older Peoples’ Day Care Services and a change in the
provision of the meal delivery service.” He moved on and
stated that the Council were on track to deliver a balanced budget
in 2022/23, with a key focus being placed on Adult Social Care and
Children’s Social Care. He explained that although the
Council were still predicting a budget gap in 2023/24, this had
been reduced and gave the Council more time to reform services. He
explained that all local council’s faced a financial pressure
on social care due to the effects of COVID, but Thurrock would
continue to work hard to support vulnerable residents. He stated
that both Adult and Children’s Social Care would be given a
financial boost, due to the proposed council tax increase of 1.99%
for Children’s Social Care and 1% for the Adult Social Care
Precept. He stated that for an average band D property, this would
equate to an increase per week equivalent to the cost of 2 pints of
milk or a first class stamp. Councillor Hebb explained that the
Corporate Overview and Scrutiny Committee had met in November and
agreed with the Local Council Tax Scheme, which would be going to
February’s Budget Full Council for agreement. He stated that
this scheme helped vulnerable residents that struggled to pay their
Council Tax. He added that over the past year Children’s
Social Care had seen an increased spend of £3.1mn, but
Council Tax increases would only provide an additional £.14mn
for Children’s Social Care. He stated that all local council
were seeing an increase in social care demand post-COVID, and the
Local Government Association had recommended an increase in Council
Tax for all local authorities. He stated that inflation was
currently 5%, so the Council Tax rise remained under the inflation
level. Councillor Hebb explained that Thurrock Council also had a
low council tax base, for example Thurrock collected approximately
£16.5mn less that Southend-on-Sea Borough Council in Council
Tax.
Councillor Hebb moved on and explained that the Council would also
need to reform services, as well as increasing Council Tax. He
explained that therefore the Council would only be focusing on
vital capital programme projects. Councillor Hebb added that the
investment approach, which had helped increase reserves by 300%
since 2016, was also being wound down, which would reduce the
Council’s income. He explained that there were currently
£13mn in reserves, but these could only be used as a one-off
solution, due to their nature and had to be used prudently.
Councillor Hebb highlighted point 2.8 of the report and felt that
the investment approach had been successful, and had helped the
Council survive the pandemic, but was now being wound down due to
changing rules and a changing market. He explained that the
Council’s website had been updated which more detailed
information regarding the investment approach and the treasury, and
provided more consolidated information for residents. He stated
that the report would go to the Corporate Overview and Scrutiny
Committee next week, who would also receive a report regarding
member oversight of the investment approach and Comprehensive
Spending Review (CSR). Councillor Hebb summarised and stated that
the budget for 2022/23 would be balanced due to the reduced
inflation stimulus of Adult and Children’s Social Care; the
redefinition of services; and the use of reserves.
Councillor Duffin thanked Councillor Hebb and his team for the
report, and felt it was good to see more detailed information being
published on the Council’s website. He also highlighted that
an additional £115mn had come into the Council because of the
investment approach, and felt proud that the approach had been
successful. Councillor Huelin added that although Thurrock Council
had a lower Council Tax base than other unitary authorities, it had
a higher than average number of service users. She stated that
Thurrock Council had the lowest spend per head on Adult Social Care
than any other unitary authority in England, and therefore were
under pressure to provide a good service to users. She stated that
pressure on Adult Social Care services had increased during the
pandemic, and therefore spend had increased from £1.5mn to
£3mn. She explained that although the Council operated a
policy of early intervention, the additional income of
£700,000 from the 1% Adult Social Care precept, would equate
to roughly £875 per year for every service user. Councillor
Huelin explained that therefore the team had to look for
efficiencies within the service to ensure a good service was
provided for service users. She stated that the commissioning team
looked at all contracts to ensure the Council were receiving value
for money, and the team also worked with the voluntary sector and
other partners. She stated that the team had consulted with
residents on the amalgamation of the day service to Cromwell Road,
and had found the new service to provide more flexible respite care
and increased opening hours.
Councillor Johnson stated that recent news headlines around the UK
had highlighted the issues that could occur within Children’s
Social Care, particularly during the pandemic, as COVID had
increased pressures on services around the country due to an
increased number of service users. He stated that at Thurrock, 50%
of the overall budget was utilised by Children’s Social Care
as it could be hard to place children, and unregulated placements
could cost upwards of £40,000 per week. He stated that the
increase in Council Tax would be ring-fenced by Children’
Social Care which would help protect vulnerable children throughout
the borough. Councillor Spillman highlighted that the proposed
Council Tax rise would still be under inflation levels, and the
additional income from Council Tax would go directly to Adult and
Children’s Social Care to help the most vulnerable.
The Leader thanked Councillor Hebb and the finance team for their
hard work on the report, and felt that Adult and Children’s
Social Care needed support to ensure the borough’s most
vulnerable residents were looked after. He stated that during the
pandemic, the Council and the community had worked hard to support
vulnerable people, and the Council would continue this support once
the pandemic was over. He stated that it was good to see the
Council changing and evolving, and felt proud that the investment
approach had increased the Council’s budget by £115mn.
Councillor Hebb explained that the £16mn of interest payments
associated with the investment approach had allowed for the
£115mn investment into the Council. He highlighted section
2.8 of the report and explained that the spend on non-statutory
services had increased due to the investment approach.
RESOLVED: That Cabinet:
1. Noted the proposed updates to the Medium Term Financial Strategy
and the remaining deficits in future years.
2. Supported the use of capital receipts and general reserves to
meet the 2022/23 budget deficit of £2.490mn.
3. Supported the proposed council tax increase of 1.99%.
4. Supported the 1% Adult Social Care precept increase.
5. Commented on the draft budget proposals within this report to
inform the consultation with Corporate Overview and Scrutiny
Committee, with the final budget proposals to be presented to
Cabinet at its February meeting, ahead of Full Council on 23
February 2022.
Reason for decision: as outlined in the
report
This decision is subject to call-in
Supporting documents: