The Cabinet Member for Finance introduced the proposals.  He advised that for the fifth year in a row Swale Borough Council was not increasing its Council Tax precept and considered that this was a record to be proud of. He made the following comments: the Council had increased income and delivered efficiencies to protect frontline services; the budget delivered a strong economy in a fair society; fees and charges were kept to a minimum; Council Tax had been cut in real terms; and services had been improved, despite a £4m loss in Revenue Support Grant to-date, and on-going reductions over the next two years.  He advised that SBC collected Council Tax precepts on behalf of other Authorities and they had announced the following increases: Kent County Council 1.99%; Kent and Medway Fire Authority 1.95%; and Kent Police and Crime Commissioner 1.99%.  He spoke of the need for the Council to develop a new efficiency strategy; be more commercial in its activities; and scrutinise the business case of all future expenditure.  He advised that the level of reserves had been increased to £14m in 2014.  There was no recommended level for Council reserves but it was important for the Council to be able to absorb the costs of one-off events; potentially large regeneration activities; reduction in New Homes Bonus; and the cost of planning appeals, especially given that business rate income is highly volatile.  He referred to the decision to agree borrowing of £3m to build a multi-storey car park as part of the Sittingbourne Town Centre regeneration project, and a further request of up to £6m to enable the Council to support regeneration activities as they arose.  He spoke of the challenges facing the Council over the next four years and considered that all Members had a role to play in their Wards by encouraging the business community to take advantage of the facilities offered within the Borough, which would generate further income through Business Rates. 

He requested that the following words be recorded verbatim:  “Let me say a few words mainly for internal consumption here at the Council, but for external recognition.  And that is about our staff. 

Our staff are the backbone of the Council and that is why, to save money and become more efficient, we did not go down the path to make savings by making staff redundant and thereby lose the skills that we desperately needed. Neither did we cut services.

Like all of the public sector, and much of the private sector, the last few years have been pretty tough for council staff.  Declining budgets, frozen salaries, constant efficiency savings.  Our staff have done a really terrific job.  And I want to put on record here my thanks to them on behalf of the elected Council. 

Morale is good, ideas are still flowing, staff are delivering the savings and the services by going the extra mile.  You are what makes this place special.”

He thanked the Head of Finance, Chief Accountant, Finance Team, Chief Executive, Directors, Strategic Management Team and Cabinet colleagues for their hard work on this year’s budget.  He concluded by referring to the significant budget pressures and the need for on-going joint working and service reviews.  He considered that 2015/16 would be a year of change but also stability, as the Council moved forward with sound finances, committed staff, growth in the business community, and budget proposals which protected residents and strengthened the community.

The meeting was adjourned at 8.31pm to seek legal advice and reconvened at 8.40pm.

Councillor Mike Henderson proposed his first amendment as follows:

“1. Reduce expenditure relating to retirement of director of regeneration by £20,000.

2. Add £100,000 to expected income from NNDR. At present proposal does not allow for strongly expected growth in 15/16.

3. Increase expenditure budget for IT by £50,000.

4. Remove under cost pressures section £880 allowed for increase in electricity charge for Swale street lighting. Cost should go down, not up.

5. Propose an increase of £90,000 for 15/16 in Planning income.

6. Propose an increase in tourism expenditure of £25,000 to allow for a reasonable external marketing effort in 15/16.

7.  Propose an additional £50,000 for Economic Development expenditure budget to allow  promotion of economic activity in Swale.

8. Propose an increase in staff budget of £50,000 in Planning Enforcement to allow sufficient resource.

The total result of these changes will be reduction in expenditure combined with an increase in income of £210,880 and an increase in expenditure of £175,000. This provides an overall reduction in expenditure of £35,880 while potentially improving service in several important areas of SBC activity.”

This was seconded by Councillor Adam Tolhurst.

Discussion ensued on the amendment and in accordance with SI 2014 No. 165, a recorded vote was taken on the amendment and voting was as follows:-

For: Councillors Mike Henderson and Steve Worrall.  Total equals 2.

Against: Councillors Rick Barnicott, Sylvia Bennett, Bobbin, Andy Booth, Lloyd Bowen, Andrew Bowles, Mick Constable, Derek Conway, Mike Cosgrove, John Coulter, Adrian Crowther, Duncan Dewar-Whalley, June Garrad, Sue Gent, Nicholas Hampshire, Angela Harrison, Lesley Ingham, David Jones, Gerry Lewin, Peter Marchington, Bryan Mulhern, Colin Prescott, Ken Pugh, Gareth Randall, Pat Sandle, David Sargent, David Simmons, Ben Stokes, Adam Tolhurst, Roger Truelove, Anita Walker, Ghlin Whelan, Mike Whiting, Ted Wilcox, Nick Williams, Alan Willicombe, Jean Willicombe, Tony Winckless and John Wright.  Total equals 39. 

The amendment was therefore lost.

Councillor Mike Henderson proposed his second amendment as follows:

“That SBC does not agree to additional £6m borrowing nor agree to delegating authority to the Leader and Finance Director. This is related to Sittingbourne regeneration.”

This was seconded by Councillor Roger Truelove.

Discussion ensued on the amendment and in accordance with SI 2014 No. 165, a recorded vote was taken on the amendment and voting was as follows:-

For: Councillors Mick Constable, Adrian Crowther, Angela Harrison, Mike Henderson, David Sargent, Adam Tolhurst, Roger Truelove, Ghlin Whelan, Nick Williams, Tony Winckless and Steve Worrall.  Total equals 11.

Against: Councillors Rick Barnicott, Sylvia Bennett, Bobbin, Andy Booth, Lloyd Bowen, Andrew Bowles, Derek Conway, Mike Cosgrove, John Coulter, Duncan Dewar-Whalley, June Garrad, Sue Gent, Nicholas Hampshire, Lesley Ingham, David Jones, Gerry Lewin, Peter Marchington, Bryan Mulhern, Colin Prescott, Ken Pugh, Gareth Randall, Pat Sandle, David Simmons, Ben Stokes, Anita Walker, Mike Whiting, Ted Wilcox, Alan Willicombe, Jean Willicombe, and John Wright.  Total equals 30. 

The amendment was therefore lost.

As no further amendments had been submitted Members moved to consideration of the substantive motion.

The Leader considered that this was an excellent budget and urged Members to support the proposals.

The Leader of the Labour Group advised that the Labour Group supported SBC’s freeze in Council Tax proposed in the budget, but raised concern that the freeze had cost the Council £400k over the past five years, and the effect on residents was miniscule.  He spoke of the hard work shown by Council officers over the past few years in balancing budgets.  The Government’s austerity plans and loading-up of reserves had set many challenges for officers in endeavouring to deliver services that residents expect and deserve, whilst at the same time having to restrict some services.  He thanked Council staff across the authority for delivering services as best they could within the restrictions being imposed.  He considered that £14m in reserves was totally unreasonable, part of the money should be used to deliver the Council services needed by local residents. He raised concern regarding the omission in the papers presented to Scrutiny Committee relating to the proposal to allow for a further £6m to be borrowed to help the Spirit of Sittingbourne consortium.  The Labour Group supported the need for regeneration in Sittingbourne Town Centre, but the proposals had dragged on and there were no guarantees that the proposals would be deliverable. The budget showed there were no plans for significant regeneration in other parts of the Borough, and more action was needed to address the lack of temporary housing for vulnerable residents. 

The Leader of the Independent Group made the following comments: disappointed that other opposition parties had not submitted amendments to the budget; important to have a flexible budget; need to take the budget setting process seriously, Councillors are being told that it is either too early or too late to submit budget proposals; not convinced that the levels of reserves are sensible; lack of information on how the reserves would be used and if it would be in conjunction with borrowing; disagree with the proposal to delegate the decision regarding borrowing to the Cabinet Member and officers, it was an important decision for the Council and needed to be scrutinised; and it was vital to generate new business and be innovative in the ways that we promote the Borough.

The Chairman of the Scrutiny Committee advised that the budget had been thoroughly reviewed by the Committee and no recommendations had been made.

Discussion ensued during which the following comments were made: the Council’s improved financial situation had been reflected in the unqualified opinions issued by the external auditors; the proposals generated real savings and demonstrated sound financial management; would commend the budget; priorities were unclear and need more vision; investment was one-dimensional and focused only on Sittingbourne, excluding Sheppey and Faversham; investment in car parks was not a shrewd decision; and the budget was fair and affordable.

Councillor Wilcox spoke as seconder of the substantive motion and commended the budget to Members.

In accordance with SI 2014 No. 165, a recorded vote was taken on the substantive motion and voting was as follows:-

For: Councillors Sylvia Bennett, Bobbin, Andy Booth, Lloyd Bowen, Andrew Bowles, Derek Conway, Mike Cosgrove, John Coulter, Adrian Crowther, Duncan Dewar-Whalley, June Garrad, Sue Gent, Nicholas Hampshire, Lesley Ingham, David Jones, Gerry Lewin, Peter Marchington, Bryan Mulhern, Ken Pugh, Gareth Randall, Pat Sandle, David Simmons, Ben Stokes, Anita Walker, Mike Whiting, Ted Wilcox, Alan Willicombe, Jean Willicombe, and John Wright.  Total equals 29.

Against: Councillors Mick Constable, Angela Harrison, Mike Henderson, David Sargent, Adam Tolhurst, Roger Truelove, Ghlin Whelan, Nick Williams, Tony Winckless and Steve Worrall.  Total equals 10.

RESOLVED:

(1)  That the Head of Finance’s opinion on the robustness of the budget estimates and the adequacy of reserves be noted.

(2)  That Minute No. 465/02/15 approved by the Cabinet on 4 February 2015 on the report on the Medium Term Financial Plan and the 2015/16 Revenue and Capital Budgets be approved.

(3)  That the resolutions contained in Appendix I be approved.