Agenda item

Statements by the Leader of the Council, Executive Members and Deputy Executive Members

To receive any statements by the Leader of the Council, Executive Members and Deputy Executive Members.

 

In accordance with Procedure Rule 4.2.23 the total time allocated to this item shall not exceed 20 minutes, and no Member shall speak for more than 5 minutes

Minutes:

 

John Halsall, Leader of the Council

I don’t think that any previous Leader has made the decision to dedicate his or her full time allocation to the issue of the Council’s finances. I am choosing to do this, this evening as I consider it is a matter of extreme importance that our finances are well managed and just as important, that the actual state of our finances are properly understood by Council and by our residents. If our financial health is poor then it is not just an issue of questioning our collective competence in managing such a vital matter, but more fundamentally it brings into question our ability to be a viable entity and provide the critical services we need to for our residents, particularly in such unprecedented challenging times. If the public have no confidence in our financial management, they have no confidence in the Council and the loss of confidence in this Council at such a crucial time in our history would be disastrous.

 

Because of cheap political headlines, the proffering of alarmist messages and pervasive political propaganda intended to mislead our residents, it will I suspect surprise you to know that our Council’s finances are in fact in extremely good health. This is especially true in the context of the recent financial challenges we have faced as a result of the COVID-19, such challenges precipitating claims of insolvency or mass draconian service and staff cuts in other Local Authorities. Although we need to remain financially astute and responsible, our position is a far cry from this terrain.

 

Our financial strength and financial standing is not something that has materialised overnight. In 2002 we, the Conservatives, inherited what can only be described as a financial crisis following a period of mismanagement by the Liberal Democrats. We had perilous balances at only £2.3m, an uncontrolled overspend of £1.0m and had to act quickly to arrest a fatal decline into insolvency. Eighteen years of responsible Conservative leadership has, amongst other things, been devoted to restoring, maintaining and enhancing this Council’s financial wellbeing. This has entailed replenishing balances to a safe level of approximately £10m, delivering efficiencies of many million pounds year on year, generating new income sources through our commercially minded activities, whilst investing at unprecedented levels in key priorities such as Highways, Affordable Housing and Climate Change. We were financially strong and resilient coming into COVID-19 and that was despite years of austerity from 2008 when we faced continual escalating statutory care costs and severe reductions in Government funding. It is this financial resilience that has enabled us to step up in the ways we have needed to for our community throughout this pandemic.

 

This is not just me making fanciful misleading statements in the way that some have chosen to do. This is our financial track record and financial health is based on facts and on the reports of external experts. Our Medium Term Financial Plan agreed at this Council meeting only February this year states the following:

 

“Our real terms cost of delivering services has reduced by 31% since 2011, which is primarily as a result of continually finding more cost-effective ways of going about our business. Our service efficiencies over the past five years alone amount to over £22m on a net service budget of approximately £130m and I can find very little, if anything over the years that amounts to service cuts. Indeed we have been investing in services like Waste Collection and Libraries whilst other authorities have been pairing these back”.

 

Our balances over the past 5 years have held at approximately £9m to £10m. We are the lowest government funded Unitary Authority at £84 per person whilst other Authorities receive as much as £450 and yet we still manage to invest in services, including a capital investment programme for our community of £150m to £180m each year. Isn’t it an incredible testament to our huge efforts and competence over the past nineteen years that we have been able to manage our finances in this way for our residents, year after year?

 

Turning to the recently published Mid-Year Treasury Management statement which I referenced in my answer to a question earlier in this meeting. I apologise that it is again based on facts and not fanciful stories.  In that you will see our income from investment activities amounts to £7.2m per annum, which is a not inconsiderable sum. Because of that income, all of the borrowing the Council has ever had to make to deliver on all our capital schemes since WBC has existed such as Roads, Schools, Affordable Housing, Regeneration, is of almost no cost to our Council Taxpayer. Well, £7.52p for a Band D to be precise. What’s more, we have accumulated realisable assets of over £500m.

 

I am extremely proud to say that I currently preside over a local party that has demonstrated, over many years, the highest levels of financial responsibility and financial acumen.

 

Charles Margetts, Executive Member for Health, Wellbeing and Adult Services

I wanted to take this opportunity to bring you up to date on our plans for the Covid-19 situation in the Borough and our plans going forward. Cases in Wokingham, as I said earlier, have risen this week to a rate of 155 per 100,000. This is partly due to an outbreak at a local care home. Wokingham still has a lower weekly case rate than the south east or England. Our expectation over the next few weeks is that we will see a levelling off of the rise in cases as the lockdown hits our figures. However, the overall trend is likely to be upwards and the situation will get worse before it gets better over the winter. Whilst a vaccine has been widely trailed in the national media it is still many months away from the ground and it is really important that we all work together to minimise the threat to our Borough.

 

I take this opportunity to remind all who are listening of the importance of the key public health messages about washing hands properly, social distancing correctly and isolating correctly when asked to. We have been concerned about the level of Covid-19 for some weeks and have made robust plans to protect our residents from the threat over the winter. The key points are as follows:

 

Our Care Homes Taskforce remains in place and remains hard at work. Their role is to support our care homes, give guidance on infection control methods, provide support with PPE, distribute additional Government grant money and support outbreaks such as Shinfield View. This approach served us well from the end of April and we will keep it in place until the threat to our care homes has passed. This service is now available to all of our care settings.

 

We are carrying out Track and Trace across the Borough. We have a contact rate of close to 90% in partnership with the national system and are phoning and door knocking positive cases to ensure that they are following guidance and receiving all the support they need.

 

We have set up a group of Covid-19 Marshals who are out and about across Wokingham, enforcing the lockdown and ensuring that Covid-secure rules are in place.

 

We have set up a specialist Schools Taskforce to support and advise our schools as they deal with the threat of Covid-19 positive cases amongst children, parents and teachers.

 

We have an active Communication Plan to ensure that residents are aware of the key messages to remain safe and understand what to do to minimise the risk of Covid-19.

 

We have continued with our One Front Door system with our partners at the CAB. This is the route any resident should follow if they need help during the lockdown. Please call this number if you need assistance. You will receive support.

 

We are making regular calls to the 4,600 of our most vulnerable residents. To date we have phoned 4,000. The purpose of these calls is to check on their welfare and mental health and to offer any support they may need. These calls are then referred to our voluntary sector partners or Adult Social Care to ensure that people receive any help they need.

 

We are knocking on the door of every resident known to Social Services who is over 75 to check that they are ok and to identify any needs. We have continued with our befriending calls with our partners at the Link. These calls are a vital way to provide support to those who are isolated or lonely.

 

The Council and the voluntary sector are working in partnership, as they did in the first lockdown, to ensure that every resident in the Borough is able to get through this period. We will continue to work hard to ensure that no-one is left behind.

 

Turning to the future, I can advise Members that we have an allocation of Point of Care tests coming to us very shortly. We are planning on how to deploy these tests with optimal benefit and will announce our plans in the next few weeks. Point of Care tests are the tests used in Liverpool and featured heavily in the national media.

 

We are particularly aware of the risk to mental health for our residents during the second lockdown. One of the key aims of the phone calls I mentioned earlier is to identify people who are struggling and help them through this period. We have brought forward, as a result of this, our new Mental Health Programme and hope to launch this formally early in the New Year.

 

I would like to conclude with a summary of the key messages for the winter months. Wash hands properly. Social distance. Follow all the rules. Wear masks when required to. Keep mixing indoors to an absolute minimum. The more we can all follow the rules, the lower the case numbers will be, the sooner we will be through this and the lower the impact on Wokingham. Please call if you need us and we will be there to help you.

 

UllaKarin Clark, Executive Members for Children’s Services

The Covid-19 Winter Grant scheme, announced on 8 November 2020, is making over £200k available to Wokingham Borough Council to support struggling families and others in need. It covers the period 1 December 2020 to 31 March 2021. It is up to the Council to decide who is most in need and who should benefit from the grant. The scheme is not designed to directly replace the additional free school meal provision made earlier in the pandemic. However, we know that families with children who qualify through means testing for free school meals are some of the most vulnerable. We must ensure that children are not at risk of going without food during the winter school holidays.

 

We will make funds available from this grant to support over 2,000 children and young people in the Borough who receive means-tested free school meals at a cost of approximately £100k. We are currently working out the detail on how the support will be distributed. One option is to provide food vouchers via schools. We are also exploring the possibility of providing hot meals directly. However, this may be extremely complicated. The vouchers would be designed so that they can only be used for food and groceries. The balance of the fund will be used to support vulnerable families and children which includes nearly 100 care leavers.

 

I recognise that there are families with children who do not qualify for free school meals and others who will struggle over the winter. We are working with the CAB who, as our “Front Door”, are the best people to reach other families and individuals in need, because they are already aware. This will also include the possible distribution of funds to voluntary organisations who are also providing support for those who need it.

 

I would like to encourage any Councillors who are aware of families in need to write to me or our Front Door, or anybody else out there who is aware of people in need. Please don’t hesitate. Please let us know. I recognise the hardship faced by many people as a result of the pandemic and I will continue to work to support those who need our help during these difficult and unsettling times. 

 

John Kaiser, Executive Member for Finance and Housing

It is nice to hear the Leader of the Council, who is a qualified accountant, and the CFO, who is also a qualified accountant, making the statement tonight. That was quite interesting. Before I go on, I would like to talk about one area which we, as a group, were keen to keep on track. This was the action to eradicate poverty and deprivation in the Borough, extending to affordable homes, homelessness, rough sleeping and general support to lift people out of poverty. I am pleased to report that the control and investments made by the Council have allowed us not just to deliver the support needed such as PPE and food amongst a host of other support packages, but now allows the Council to offer support and concessions to the poorest and most vulnerable in the Borough. As such it gives me great pleasure to announce that we will be looking to extend two Council discount schemes:

 

1.     The extension of the Council Tax Reduction Grant to carers by discounting carers allowance as part of the income taken into account when assessing who should receive the allowance, thus meaning more carers will be able to access this financial support.

 

2.     Additional support for care leavers, this means the removal of the financial burden of Council Tax for these people up to the age of 25, a very important concession for these young people making their way in life.

 

Both are worthwhile benefits for residents who need support and forming part of the Borough Council strategy to eradicate poverty in the Borough. This has only been possible due to the successful management of the Council’s finances. In addition, as you heard earlier, we will provide free school meals to children who qualify on a needs basis not just for the Christmas holiday period but also during the half-term break. We are working on the way that this is going to be implemented.

 

It has been frustrating listening to the lies and rumours about the Council’s finances during this time when people have many fears, illness, loss of jobs and income and in some cases deterioration of mental health. Families have been unable to meet with the most at risk, such as grandparents. Statements to scaremonger at such a time is not only irresponsible but lacking any sense of feelings or respect for all those who benefit and rely on the many services delivered by Wokingham Borough Council. Rest assured, my intention is to run the Council’s finances in such a way that creates savings and investments which make available money so, when we get back to normal, whatever that will look like, the Council will still be in a position to deliver those services at the same time having supported the residents throughout this very difficult and challenging time.

 

Whilst we have been responding to the pandemic, we have been ensuring those in most need receive the services and support required. This has meant we have incurred substantial costs. All of this has been going on at a time when key income to the Council has dried up, most notably Leisure and Car Parking and we have been diverted away from delivering on savings initiatives. I have found this extremely challenging, to ensure the needs of our vulnerable are met and trying to manage the Council’s resources responsibly.

 

Fortunately, we came into this pandemic with a strong financial standing created through a robust and a sound business-like approach to the Council finances over many years. This has provided income critical to funding our response. Whilst contrary to some of the dramatic and vastly inaccurate statements about the Council’s finances, we have always borrowed sensibly and continue to do so. We have used this to generate income and continue to have assets far, far, far in excess in value of our borrowing liabilities.

 

As we come out of the shadow of Covid you will see other initiatives for the poor and vulnerable. We are well placed to pursue the goal to eradicate poverty and will continue to do so. As I have said on many occasions: “a broke Council is no use to anyone”.