Issue - meetings

Report by the Chief Executive.

29.1     The Assistant Chief Executive introduced the report. The report sets out the Committee’s involvement in the Reconciling Policy, Performance and Resources (RPPR) budget setting process. The report seeks the Committee’s views on the areas for further discussion that could be included in the work programme, comments on the process and any changes that the Committee might wish recommend.

29.2     The report also recommends some enhancements to the Committee’s involvement in the RPPR process. It is proposed that the Committee considers the year end Council Monitoring report and the State of the County, report which sets out the policy developments that are likely to affect the Council, at the July Place Scrutiny Committee meeting. It is also proposed that the Committee hold an annual work planning day in September. This has entailed moving some of the Place Scrutiny Committee dates to facilitate this enhanced involvement.

29.3     The Committee discussed the report and a summary of the comments made is given below.

29.4     The Committee asked it if would be possible to include consideration of capital projects in the Committee’s RPPR work (e.g. the Emergency Active Travel funding; the funding of Electric Vehicle charging points etc.). The Assistant Chief Executive responded that scrutiny could explore the capital programme as part of the RPPR process, and there might be some benefit to doing this at an earlier stage. The Committee could include items on capital projects in the work programme and then feed them into the RPPR process.

29.5     The Committee commented that it would like more information on the bigger picture which frames the budget decision and allocations, and the stages where scrutiny can have the most impact in helping to form budget proposals and budget amendments. The Assistant Chief Executive outlined that the State of the County report in July aims to set the scene on what the forthcoming budget pressures are likely to be and the policy context for the budget setting process. This links into what the budget priorities might be for the coming financial year and the subsequent budget proposals. The Committee can consider this at the July meeting and then include items in the work programme.

29.6     The Committee asked if it would receive feedback on how the unallocated reserve is to be spent. The Assistant Chief Executive outlined that the process for developing the detailed proposals for this one-off expenditure is still being worked through and this will include how to involve scrutiny. If the Scrutiny Committee has ideas on how this money could be spent, the work programme is a good place to develop them and then feed them into the RPPR process as it progresses for consideration by Cabinet.

29.7     The Committee commented that it was happy with the proposals to enhance the Committee’s involvement in the RPPR process as outlined in the report.

29.8     The Committee RESOLVED to:

1) Note the committee’s input into the RPPR process; and

2) Agreed the proposed enhancements to the RPPR scrutiny arrangements set out in paragraph  ...  view the full minutes text for item 29

Report by the Chief Executive.

20.1     The Assistant Chief Executive introduced the report. This report provides the opportunity for the Committee to receive updates on the RPPR process since the September Place Scrutiny Committee meeting and identify any information it requires for the Place RPPR Board which will be held in December. The September Cabinet report, which is appended to the Committee report, provides a policy update since the State of the County report. There is still a great deal of uncertainty about the forthcoming Government policy developments, and more information is awaited on the Levelling Up White Paper; the national review of Special Educational Needs and Disability (SEND) provision; the review of Children’s social care; and the review Adult Social Care funding. All of which are expected to be announced later this year or next year.

20.2     It is usual that the Committee receives an update on the proposed savings as part of this report, and in particular the Committee has requested an update on the proposed savings for the Trading Standards service. As set out in the report, the planned savings in the Trading Standards service have been removed following service pressures. The report also sets out an updated Medium Term Financial Plan (MTFP).

20.3     The Chief Finance Officer provided an update on the MTFP since September during which time there has been the Budget Statement and the publication of the Spending Review for 2021. There have been some key financial announcements as part of the Settlement which saw the announcement of three-year grant totals, but not specific grant allocations. The Council is likely to receive only a one year funding allocation from those grants for 2022/23, with the future two years likely to be subject to different types of allocation. There is a level of risk that the methodology for funding allocations will change over the course of the next three years. The Council knows the totals for the grants that have been announced but not the individual allocations to local authorities, and there is still a large degree of uncertainty.

20.4     Some of the key announcements are:

• There will be £4.8 billion new grant for local government nationally which equates to £1.6 billion per year. Under the current formula for allocation, East Sussex County Council’s (ESCC) likely share of this will be around £7 million. However, some sub-grants that make up this figure have previously been announced such as £200 million over three years for supporting families, £38 million for cyber security over three years, and £35 million for transparency which will be for things such as external audit and access to information.
• The 1.25% increase in National Insurance that the Council will have to pay as an employer from April 2022 will have to be taken from the local government grant and this will add a cost pressure to ESCC of around £1.5 million.
• Allocations of £2.7 billion funding nationally for roads, £3 billion for buses, and £2 billion for walking and cycling. We will need confirm whether this is  ...  view the full minutes text for item 20

Report by the Chief Executive.

12.1     The Assistant Chief Executive introduced the report. He outlined that this is the start of scrutiny’s engagement in the budget setting process for 2022/23 and beyond. The State of the County report in July set out the context for the detailed financial planning during the rest of the year. The financial and policy position remains one of uncertainty and there have been a number of developments since July which will be covered in an RPPR Update Report which will be considered by Cabinet on 30 September 2021. There have also been a number of Government announcements which include:

• There will be a three year financial settlement following the spending review which is likely to be published on 27 October 2021.
• The Government is aiming for a balanced budget from the financial years 2023/24 through to 2025/26.

• The Government has announced plans for Health and Social Care reform which will be funded by a 1.25% levy on National Insurance contributions made by employers and employees. Details will be set out in a White paper which will be published later in the year. The impact on East Sussex could be significant in terms of the local care market and on our health partners.

• A plan for Levelling Up will be published later this year with a view to addressing inequalities between and within places and regions in the United Kingdom. It is anticipated that more details will become available around the end of October or the beginning of November to be delivered by the renamed Ministry for Levelling Up, Housing and Communities which replaces the former Ministry for Housing, Communities and Local Government.

12.2     The Committee should expect further policy changes to be made in the coming months and will be kept informed through reports to Cabinet and Full Council. The impact of any policy changes will be factored into the financial planning process.

12.3     The Committee discussed the report and a summary of the points raised is given below.

Local Council Tax Discount Schemes

12.4     The Committee asked for more details on the potential loss of income as a result of the proposed changes to the Local Council Tax Discount Schemes by Lewes and Rother District Councils, and whether this would mean a reduction in the services East Sussex County Council (ESCC) will be able to provide.

12.5     It was clarified that a report on ESCC’s response to the consultation by the two billing authorities is being considered by the Lead Member for Resources on 1 October 2021. It is estimated that if the Lewes District Council proposals are implemented it will result in a loss of income to ESCC of around £800,000. It is thought the proposals by Rother District Council will have a less significant impact, but they have not been quantified. The Lead Member report will set out what this might mean in terms of reduced service provision, and any impact on services will be dealt with through the RPPR process.

Capital Programme - Street Lighting

12.6  ...  view the full minutes text for item 12