Agenda item

The Chair welcomed Councillor John Hart, Leader of Devon County Council. As part of the ‘Tough Choices’ theme he was meeting with District/Town/Parish Councils to explain the kind of future the County Council faced.

The current year, 2015/16, had seen cuts to the County Council’s funding for the fifth year in succession. Since the Government’s Comprehensive Spending Review in 2010, the County Council’s core funding had reduced by £109 million. With inflation, demographic and demand pressures this translated into savings in Council services of £175 million with another £40 million likely to be sought for 2016/17 and £34/35 million for 2017/18. Cuts to Local Government funding would continue throughout this period and the Government had indicated that the Revenue Support Grant would reduce to £nil by 2019/20.  The County Council’s Revenue Support Grant in the current year was just under £87 million.

Demand for services and cost pressures were increasing. The County’s response had been to reshape its services including youth, libraries, day care, closure of residential homes, the removal of £1.7 million from rural transport and the sale of over a 100 properties. The introduction of a National Living Wage would lead to additional costs of £7.2 million.

The Government intended to move to a 100% Business Rates Retention although there was currently no detail and valuation figures would impact. The County Council currently received 9%, just under £22 million, of the Devon Business Rates with a top-up from Central Government of £72 million. The potential risks and rewards of this policy change were significant.

On 25^th November, the Chancellor would announce the Government’s Autumn Statement and the outcome of the Comprehensive Spending Review 2015. The content was unknown but was expected to include the changes to Revenue Support Grant and Business Rates. As the County Council would not know its level of Government funding until the middle of December the way forward was uncertain but it was clear that the ongoing challenges were being intensified. Specific to Devon were a growing population, increase in over 65’s and over 80’s, 17% increase in childbirths and challenges of providing broadband provision in a largely rural area. The situation relating to weed clearance beyond three years was also uncertain.

Responding to Members’ issues, Councillor Hart made the following comments:-

• Living Wage costs of £7.2 million translated into a direct cost on the County Council of between £200,000 to £250,000 with a further cost of £800,000 falling on schools/education;
• evidence of greater resilience in face of cuts with increasing self help evident;
• greater public support for Local Government than for the Government;
• Pay and Display parking proposals for seaside and market towns had not been implemented due to significant (4,000) opposition and some machines had been made available to Devon authorities. Although Pay and Display generated £3million income per year its use was governed by legislation;
• opposed to a referendum on whether to increase the Council Tax above the 2% cap as the public were likely to resist. The County had been forced to back down when this had been attempted in the past. Furthermore, the cost of re-billing was likely to be in the region of £2million;
• plans were being developed for upgrading the North Devon Link Road subject to funding, and improvements to the A30/A303 was a further aspiration; and
• with regard to meeting aspirations through reducing the defence budget, the Defence of the Realm was a major focus/problem for all Governments.

Councillor Hart was asked to ensure that, in future, the County Council would engage at an earlier stage when policy decisions were likely to impact significantly on services in the City. It was accepted that severe challenges faced both authorities, but advance consultation, as well as helping to secure savings, could offer greater likelihood of achieving quicker and more acceptable outcomes for the community. Unfortunately, youth provision was an example where the future remained unclear and other areas, such as highways, could also benefit from this approach.

Councillor Hart advised that the County Council remained keen to work in partnership with all Devon Districts and that both this Board and Exeter HATOC provided opportunities for collaborative working.

The Chair thanked Councillor Hart for attending.