Issue - meetings

Report by the Chief Executive.

51.1     The Committee considered a report by the Chief Executive, on the RRPR process for 2018/19. The Chief Executive introduced the report and outlined that it was the Committee’s opportunity to provide feedback on, and suggest improvements to, the RPPR budget setting process.

51.2     Key points from the discussion:

• The Chief Executive outlined that there will be reports going to the June Cabinet meeting that will provide an update on the RPPR process and the public consultation that is taking place on the savings proposals for 2018/19.

• The Lead Member for Resources welcomed any comments the Committee wished to make on ways the Council can do things differently in regards to the RPPR process.

51.3     The Committee RESOLVED to note the report and the response to the RPPR Board’s comments on the budget.

Report by the Chief Executive.

40.1     The Director of CET introduced the report and outlined that it was the Committee’s opportunity to reflect on the RPPR process and examine the future financial constraints on the Council. He referred to a recent presentation he had given to the Sussex Association of Local Councils, and the Committee asked if it was possible to go through the presentation outlining the financial challenges facing the Council.

40.2     The key points in the presentation were as follows:

·          The elderly population in East Sussex is increasing and the working age population is going to decline, which has a bearing on the demand for services. In the local economy, productivity is low in terms of Gross Value Added (GVA). Although there are some successes, there are fewer businesses in East Sussex. Full time earnings are lower than elsewhere in the South East.

·          The Rate Support Grant (RSG) received from central Government will be zero by 2020. The income from Business rates is static. So the only way to increase the Council’s income is by raising Council tax. Even so, the demand on services will create a funding gap of around £100million.

·          Business rate retention is not going to be the solution. To fill the funding gap will require a 23% increase in Business rates income, or a 12.99% increase in Council Tax, or 13,640 new homes to be built to increase the Council Tax base.

·          In reality there is likely to be no business rate growth, a cap on Council tax increases of 5.99%, and only 1,400 new homes were built in 2016/7. Although predicting housing growth for future years is difficult, both Hastings and Eastbourne have constraints so most development is likely to be in Lewes, Wealden and Rother. House building is slow and requires the necessary infrastructure. It is unlikely house building will reach the numbers needed to fill the funding gap.

·          So the financial picture is one of reduced income and unfunded cost increases (e.g. extended Special Educational Needs and Disabilities (SEND) support; national dispersal scheme for unaccompanied Asylum seeking children; inflation; minimum wage increases; apprenticeship levy etc.). The Council cannot match the demand for services with the funding it has available. So therefore it needs to make further savings. ESCC is not the only local authority in this position.

·          The journey ESCC has taken so far between 2010 and 2013 is that it has made £14.4 million savings; between 2013 and 2016 £64 million savings; and between 2016 and 2021 it will need to make a further £75 million to £85 million in savings.

·          The Council’s budget has reduced by £112million in last 8 years, and has a savings requirement of £17 million in 2018/19, £12 million in 2019/20 and £19 million in 2020/21. The Council is projected to have made savings of £159 million over 11 years, but will still have net budget of £370 million for 2018/19.

40.3     The CET department has used a commissioning approach to focus available resources on needs and plans to save  ...  view the full minutes text for item 40