County Council Agrees Motion Around Current Financial Challenge

At the Full Meeting of Hertfordshire County Council, held at County Hall on Tuesday 18 October 2022, a motion was moved by the Leader of the Council, Councillor Richard Roberts in relation to the financial challenge being faced by the authority.

The full text of the motion is below and was passed unanimously with 69 votes ‘for’ out of 69 available votes, no abstaining or against.

Speaking after the meeting, Councillor Roberts re-iterated his commitment to doing everything that it takes to prudently manage the finances of the county council in the face of increasing inflation while also protecting services for those most in need.

A commitment has also been made as part of the motion to maintain the county council’s £17 million cost of living support programme.

Councillor Richard Roberts said: ‘Like many households across the county, we too are faced with increasing costs as inflation continues to put pressure on our finances. Despite our careful planning at the start of the year we have seen these external pressures create a substantial shortfall in our budget. While we still live with the uncertainty of what the coming months will bring, I’m pleased to say, that thanks to prudent financial planning we will be able to manage this shortfall to ensure this year we do deliver a balanced budget.

‘While the outlook for future years remains uncertain, we are committed to plan for the worst whilst delivering the best. We will maintain services to vulnerable residents and will move heaven and earth to ensure that the council continues to provide the right support, services and advice to our residents as they too seek to balance their budgets.’

Full text of the motion

‘This Council agrees that through all our collective effort we will do whatever it takes to find a way through the current financial challenge in the same way we did through Covid. We will bring the strength of our partners and great working relationships with Health, our District and Borough colleagues, and the voluntary sector to ensure that our Council remains strong, vibrant, and confident to deliver for the people of Hertfordshire.

‘Everyone understands the importance, that we fund the services needed for the most vulnerable whilst also ensuring that the council remains financially stable, efficient and effective.

‘The financial position this year has been subject to the same inflationary pressures affecting every family and every business but we are confident our front-line services including our Highways programme will be delivered. We made sure that when the sun was shining, we saved for the rainy days. With careful use of reserves, contingencies, and efficiencies from all parts of the Council we have rebalanced our budget for this year through to next April.

‘We are now planning our budget for next year with the understanding that our costs and our partners costs are continuing to go up. At this stage we know that inflation will remain high, our wage bill has gone up by about 7% and energy costs have accelerated. The war in Ukraine and the restriction of gas from Russia have been two shocks that we can do nothing about, the gyrations in the money markets and our currency are also things we cannot control.

‘But with the amazing effort of our fantastic staff, we know we can still run great services with what will still be approximately a billion pounds of taxpayers’ money.

‘However, the scale of challenge cannot be underestimated, we will have to make some difficult decisions and further efficiencies will be inevitable. We are lobbying Government to help a little more, especially funding care services and we may need to put Council taxes up, albeit any such rises will remain well below inflation.

‘Nobody is immune from the cost increases including this Council with a daily, intense focus on our finances and as importantly delivering our services.

‘This Council notes that the Executive will: –

• Continue to lobby Government particularly through the LGA and CCN for financial support and flexibility, especially in care services
• will maintain the £17m of Cost-of-Living Support Programme that has been working for everyone but especially the most vulnerable, since July
• will continue regular financial challenge sessions to give us the best possible range of options

will give our residents and our staff the confidence that we will manage our finances with care, compassion and competence.’