Agenda item
Notice of Motions
In accordance with Council Procedure Rule 12, the following Motions have been received.
Motion A: Council Finances
Proposed: Councillor Mike Evemy
Seconded: Councillor Tony Dale
This Council notes the declining health of local council finances across England and the financial failures of eight councils since 2018 as evidenced by the issue of Section 114 notices by their Chief Finance Officers, most notably Birmingham City Council, Europe’s largest local authority, which declared effective bankruptcy on 5 September 2023.
This Council notes that following the issue of Section 114 notices, the Secretary of State has appointed commissioners to the affected councils whose priority is to make decisions to bring their budgets into balance rather than to maintain services.
This Council notes its financial position including the use of £1.3 million in reserves in 2022/23 to balance its budget and its projected use of a further £0.86 million to do so in 23/24 and its establishment of a Financial Resilience Reserve for this purpose.
This Council recognises that it cannot continue to use reserves to balance its revenue budget and therefore instructs the Deputy Leader and Deputy Chief Executive to prepare a budget and Medium Term Financial Strategy that puts funds back into the Financial Resilience Reserve in 2024/25 and 2025/26 by delivering operating surpluses in those years.
It further notes the delays in the Government’s Fairer Funding Review which its advisers Pixel now expect to be implemented in 2026/27 and the potential reduction of £3 million in Government funding which that review could entail for Cotswold District Council.
The Council resolves to:
1. To write to the Secretary of State for Levelling Up, Housing and Communities including the contents of this motion and asking him for: (i) multiple year settlements for local councils to give them a more sound base on which to plan their finances; (ii) an overall real terms funding increase for councils in 2024/25 and beyond to prevent further councils declaring effective bankruptcy and enabling them to arrest, if not reverse, the decline in their services; and (iii) a commitment that the implementation of the Fairer Funding Review will not see councils facing reductions in their Government funding.
2. Request that a copy of this letter be sent to the Member of Parliament for the Cotswolds and the Local Government Association.
Minutes:
Following the return to session and the return of officers who had left the room, the Chair then moved to the motion on the agenda.
Motion A: Council Finances
The Chair invited the proposer of the motion, Councillor Evemy to introduce it.
Councillor Evemy in proposing the motion to Council, made the following points:
- It was noted that contrary to some commentary given, the Council was not close to bankruptcy but that there were financial challenges which needed to be faced as outlined in the Council’s Budget Consultation.
- It was highlighted that 8 Councils had issued a Section 114 notice since 2018 which included Birmingham City Council which had lost control of its finances. It was noted that Councils nationally faced this challenge and that many Councils have indicated they may also face a S.114 notice.
- It was noted that the financial pressures had forced the Council to use of £1.3 million of the finite reserves available to balance the 2023/24 budget and that it was currently projected a further £860,000 would be required to balance the 2024/25 budget.
- It was noted that an increase of central government funding of 3% was outweighed against the backdrop of high inflation, and the upcoming Fairer Funding Review which is projected to result in a loss of £3 million of funding.
- The request of the motion for multi-year settlements was outlined as key for planning the finances of the future, alongside a request to increase funding to maintain the current services provided by Councils.
- It was noted that the request regarding the Fairer Funding Review was also important to protect District Councils and the services provided.
Councillor Dale as seconder reserved the right to speak until later in the debate.
Councillor Stowe was then invited to introduce amendment tabled to the Motion which was as follows:
(Amendment in red inserted before point 1 of the original Motion tabled)
Recognise the importance of financial prudence in delivering a balanced budget. Noting that any further funding from Government can only be paid for by the taxpayer nationally, it is important that this Council gets it's "Own House In Order" before requesting further funding. Council therefore instructs officers to implement the following 7-point plan, which as a package will generate significant savings and cash-flow with no impact on service provision:-
2 year freeze in Councillor’s allowances.
25% reduction in Councillor’s special responsibility allowances.
Cabinet to be reduced to 6 members.
Cross-party working group set-up to review all vacant staff posts with the CEO.
Future issues of “Cotswold News” to be scrapped.
Budget for Social Media “promotions” to be scrapped.
All purchases and procurement not directly related to the provision of mandatory services to be stopped.
Councillor Stowe in introducing the amendment to motion made the following points:
- It was highlighted that the Conservative Group had highlighted concerns regarding spending by the Council which included spend on consultants and staff pay-offs
- It was noted that the requests of the motion to deliver a surplus budget, ask for a multi-year settlement for funding, and raise the problems of the Fairer Funding Review was something that Councillor Stowe sympathised with and would discuss with the MP for The Cotswolds.
- It was noted that the request for more financial spending power was not going to fix the concerns.
- The amendment’s request to adjust the budget were then highlighted to Council as practical measures to bring financial stability.
Councillor David Cunningham reserved the right to speak.
There were various comments around the benefits of Cotswold News in providing information to residents, especially those without access to the internet and communicating to those the Councils serve.
It was highlighted that part of the amendment’s request to reduce Cabinet to 6 Members was within the responsibility of the Leader, and that there was not a specific budget for ‘Social Media Promotions’.
It was noted that the Council provides a number of non-statutory services which Members recognised as important.
Councillor David Cunningham in seconding the amendment, then made the following points:
- The amendment was solely focussed on balancing the budget, and lead by example.
- The reference to ‘vanity project’s’ was specific to changes such as the change to the livery on street signs.
- Whilst the work of Committee Chairs and Cabinet Members was recognised, a cut to the special responsibility allowances, and a two year freeze of Councillor Allowances as proposed was recognised as important to show residents of the need to balance the budget.
Councillor Evemy in his right to reply made the following points:
- The amendment would be better proposed at the Budget meeting in February 2024, which would include the financial figures.
- The Communications Team provides a variety of communications which are beneficial for residents.
- The Member Allowances for 2023/24 was set in May 2023 which was felt to be a balanced approach to reflect the work of Councillors and taking into account the financial position.
Councillor Stowe in summing up the amendment proposed mentioned the following
- The allowance increase was a deferred increased which was felt not to be appropriate at this time.
- The reiteration of the proposals leading by example was important.
The amendment proposed by Councillor Stowe and Seconded by Councillor Cunningham was then put to a vote.
The Council resolves to:
1. Recognise the importance of financial prudence in delivering a balanced budget. Noting that any further funding from Government can only be paid for by the taxpayer nationally, it is important that this Council gets it's "Own House In Order" before requesting further funding. Council therefore instructs officers to implement the following 7-point plan, which as a package will generate significant savings and cash-flow with no impact on service provision:-
2 year freeze in Councillor’s allowances.
25% reduction in Councillor’s special responsibility allowances.
Cabinet to be reduced to 6 members.
Cross-party working group set-up to review all vacant staff posts with the CEO.
Future issues of “Cotswold News” to be scrapped.
Budget for Social Media “promotions” to be scrapped.
All purchases and procurement not directly related to the provision of mandatory services to be stopped.
Following this implementation, Council further resolves to then:
1. 2. To Write to the Secretary of State for Levelling Up, Housing and Communities including the contents of this motion and asking him for: (i) multiple year settlements for local councils to give them a more sound base on which to plan their finances; (ii) an overall real terms funding increase for councils in 2024/25 and beyond to prevent further councils declaring effective bankruptcy and enabling them to arrest, if not reverse, the decline in their services; and (iii) a commitment that the implementation of the Fairer Funding Review will not see councils facing reductions in their Government funding.
2. 3. Request that a copy of this letter be sent to the Member of Parliament for the Cotswolds and the Local Government Association.
Voting Record
8 For, 20 Against, 1 Abstention, 4 Absent/Did not vote
|
For |
Against |
Abstention |
Absent/Did not vote |
|
Daryl Corps |
Angus Jenkinson |
Chris Twells |
Helene Mansilla |
|
David Cunningham |
Claire Bloomer |
|
Andrew Maclean |
|
David Fowles |
Clare Turner |
|
Len Wilkins |
|
Gina Blomefield |
Dilys Neill |
|
Roly Hughes |
|
Jeremy Theyer |
Gary Selwyn |
|
|
|
Julia Judd |
Ian Watson |
|
|
|
Tom Stowe |
Joe Harris |
|
|
|
Tony Slater |
Jon Wareing |
|
|
|
|
Juliet Layton |
|
|
|
|
Lisa Spivey |
|
|
|
|
Mark Harris |
|
|
|
|
Michael Vann |
|
|
|
|
Mike Evemy |
|
|
|
|
Mike McKeown |
|
|
|
|
Nigel Robbins |
|
|
|
|
Nikki Ind |
|
|
|
|
Patrick Coleman |
|
|
|
|
Paul Hodgkinson |
|
|
|
|
Ray Brassington |
|
|
|
|
Tony Dale |
|
|
*As there was a vacancy in the Lechlade, Kempsford and Fairford South Ward, the total number of Councillors was 33.
The amendment was lost.
Councillor Evemy then returned to the resolution proposed and noted the following:
- It was recognised that priorities had to be made, and fitting these within the Budget. It was also important for people to participate within the Budget Consultation Survey.
- It was highlighted that the Local Government Association was clear that Councils needed additional financial support of all tiers and political control.
Councillor Dale in seconding the motion then made the following points:
- It was highlighted that the issue was a government financing issue regardless of the political party in control.
- It noted that there was lot of opportunity to deliver for the Cotswolds, particularly in the area of the economic strategy to help boost employment.
The motion presented by Councillor Evemy and seconded by Councillor Dale was then put to a vote:
The Council resolves to:
1. To write to the Secretary of State for Levelling Up, Housing and Communities including the contents of this motion and asking him for: (i) multiple year settlements for local councils to give them a more sound base on which to plan their finances; (ii) an overall real terms funding increase for councils in 2024/25 and beyond to prevent further councils declaring effective bankruptcy and enabling them to arrest, if not reverse, the decline in their services; and (iii) a commitment that the implementation of the Fairer Funding Review will not see councils facing reductions in their Government funding.
2. Request that a copy of this letter be sent to the Member of Parliament for the Cotswolds and the Local Government Association
Voting Record
25 For, 2 Against, 2 Abstention, 4 Absent/Did not vote
|
For |
Against |
Abstention |
Absent/Did not vote |
|
Angus Jenkinson |
Chris Twells |
Daryl Corps |
Andrew Maclean |
|
Claire Bloomer |
Len Wilkins |
Gina Blomefield |
Helene Mansilla |
|
Clare Turner |
|
|
Julia Judd |
|
David Cunningham |
|
|
Roly Hughes |
|
David Fowles |
|
|
|
|
Dilys Neill |
|
|
|
|
Gary Selwyn |
|
|
|
|
Ian Watson |
|
|
|
|
Jeremy Theyer |
|
|
|
|
Joe Harris |
|
|
|
|
Jon Wareing |
|
|
|
|
Juliet Layton |
|
|
|
|
Lisa Spivey |
|
|
|
|
Mark Harris |
|
|
|
|
Michael Vann |
|
|
|
|
Mike Evemy |
|
|
|
|
Mike McKeown |
|
|
|
|
Nigel Robbins |
|
|
|
|
Nikki Ind |
|
|
|
|
Patrick Coleman |
|
|
|
|
Paul Hodgkinson |
|
|
|
|
Ray Brassington |
|
|
|
|
Tom Stowe |
|
|
|
|
Tony Dale |
|
|
|
|
Tony Slater |
|
|
|
Supporting documents:
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