I must first welcome Bill Cullen to his position as Chief Executive, and to Sharon, Rob and Julie into their new roles. I wish them all well and I know they are looking forward to making a big difference for our communities.
This evening I want to give members an update on the budget preparation for next year, but before I do that lets reflect on the year just passed. 2016 was a transitional year for this council, starting with the setting of a new MTFS to balance our budget and ending with the retirement of Steve Atkinson.
During the year we have invested in the acquisition of the former co-op site in Hinckley, increased our commitment to helping people through commissioning VCS community led programmes, opened a new leisure centre and demolished an old one, started a building programme of new council houses, engaged more than ever with our rural and town communities, with expanded Snapdragon events in more villages, and the launch of a new funding programme to support Parish communities as they grow. In Hinckley we have worked closely with the BID team to organise more and bigger events, applied for Heritage fund monies to improve some aspects of the main shopping area, supported Hinckley Museum with a lottery bid, won an award for the design of the leisure centre, and came close with another as a finalist in The Great British High Street Awards. We continue our effective community safety work with our innovative Endeavour team and partnership with the police and have signed up to the Lightbulb project which will see much more joined up services for the elderly and more vulnerable members of our community.
We continue to work with colleagues across Leicestershire to form a combined authority, to boost economic growth, and to assess our housing needs beyond 2026. We also work closely with colleagues in Warwickshire, as both a member of the joint committee and also the C&WLEP. The A5 partnership is growing in stature, and is having significant influence with Highways England, Midlands Connect and the Midlands Engine, placing A5 improvements high on the priority list for future investment. We received an excellent report from our Peer challenge and are starting a new year filled with determination to do even better.
Our budget last year was set against a changing landscape for local councils, where grant funding from Government and between upper and lower tier authorities is gradually being replaced with greater local control. The timing and impact of these changes has not always worked well for H&BBC, but as we showed last year it is possible to cope with these changes, even if it requires tough decisions to be made.
It will come as no surprise to members that this year we still have challenges, but we are now much better placed to deal with them.
Last autumn we submitted an efficiency plan to Government to secure a four year deal on our Revenue Support Grant. That plan has been accepted and our expected RSG payments for the next three years are as was included in the current MTFS, and show a reduction from previous years.
Following consultation, Government has this year made changes to New Homes Bonus, one which was anticipated and one which was not. The introduction of a threshold before NHB is paid will divert money away from this council to support the ever increasing cost of adult social care. This is something that we should support and I hope that LCC will benefit from the money that will not be paid to this council. Because our own housebuilding is ahead of our predicted trajectory (and we had factored in a slightly lower figure) the impact on this council’s finances is manageable.
Part of the change in future financing of councils will be a greater retention of business rates growth, something that we look forward to, and also something that we can influence through increasing economic prosperity. This growth will take time to develop, but there is one area where we have seen growth and where we can secure an immediate increase in income to this council.
Increased business rates from the MIRA enterprise zone are able to be retained locally and, until March 2017, Council had agreed to voluntarily pass this money to the Leicestershire Local Enterprise Partnership for growth investment into the enterprise zone. With losses of grants totaling over £1m from LCC, and almost a complete removal of RSG, I have decided that this council must secure a greater proportion of the rates generated for local growth going forward.
Officers have therefore advised the LLEP that we will be seeking a new arrangement beyond March 2017 to retain a key share of the business rates generated for local growth and investment and we will not be extending the current voluntary arrangement beyond March 2017. This will see an improvement in this Councils finances, and we can decide where our investment priorities lie to improve our local economy further.
These changes, in conjunction with additional council savings, inflationary increases in fees and charges, and the small planned increase in local council tax, will ensure that we are able to present a fair and balanced budget proposal to scrutiny ahead of next month’s budget meeting.
Our agenda this evening includes a report on the local council tax support scheme. This scheme provides reductions of up to 88% of council tax for some 3000 pensioner and 2700 working age families. Despite the financial pressures being faced by public authorities, I hope that members from all parties will support this recommendation to retain these discounts. In the long term we should aim to reduce the numbers of people needing such support, but for now it is right to retain this level of help.
Proposed health care changes affecting Hinckley and Bosworth are of concern to all of us, and I would like to assure members that this Council, although not responsible for health care, is fully engaged in ensuring all of our residents get improved services. In the next two weeks we have presentations from the CCG in Hinckley and Botcheston. I shall personally be attending both of these events, along with Councillor Wright, and we are encouraging local people to do the same so that they are properly informed about the proposals. I am sure these events will be well attended. The CCG has also been invited to the next meeting of the Scrutiny Commission to give all members the opportunity for an update on the plans for our area.
I also have meetings this month with colleagues from other Leicestershire Councils and with Warwickshire & Coventry authority Leaders. At both of these we shall be discussing the latest health proposals, and in particular my concerns about George Elliot hospital possibly losing its A&E service. Taken with concern over Staffordshire and Stoke STP concerning the future of A&E at Burton-upon-Trent, this is perhaps the most worrying aspect of the local health care proposals for our Borough. With one third of our residents using George Elliot for A&E its closure would put significant additional load onto Glenfield hospital and LRI, and extend time taken by our residents to access A&E.
Cllr Wright is continuing to influence these proposals through the Local Health and Wellbeing Board, and is ensuring that the County Health and Wellbeing Partnership is addressing our local concerns. Cllr Wright will also be attending the Health and Housing MAG Group meeting with at the end of the month, which is meeting specifically to discuss the STPs.
We also remain in regular contact with David Tredinnick, who has raised his worries with Ministers over the possible closure of A&E at the George Elliot and the impact that could have on our residents.
There are benefits in what the CCG is proposing locally, some of which would not have been proposed without our involvement.
People want to be able to be cared for at home rather than to stay in hospital, and the CCG proposes to provide for more services to be delivered in the community by specialised clinical teams.
People want greater access to urgent care and the CCG is committed to providing a 24*7 service.
People want to see closer working between health and social care, and the CCG has said these will be better integrated.
People want to see operations retained in Hinckley, and they will be with improved day case services at Sunnyside.
People want to see investment in Hinckley healthcare, and over £7 million is planned to be spent at Sunnyside with an improved endoscopy suite, meaning residents will get local cancer screening for the first time.
There is probably more that the CCG can do within their budget, and we are working to achieve even better for local residents. We may not get everything on people’s wish list, but this council will continue to influence CCG thinking before the final proposals are agreed.
Minutes:
In presenting his position statement, the Leader welcomed the new Chief Executive and Senior Leadership Team who, he considered, would take the council forward in making a difference to our communities. He reflected on 2016, referred to the budget setting process and proposed health care changes that were of concern to members. In response, Councillor Bray also endorsed the new Leadership Team. Discussion ensued and further concern was raised about the health care changes by members.