Report setting out the draft Corporate Strategy, following refresh and consultation with Overview and Scrutiny Committee, as well as the proposed Combined Authority draft Budget for 2025-26, the Medium-Term Financial Plan (MTFP) and Capital Programme for the period 2025-26 to 2028-29.
Decision:
It was resolved to:
A Note the consultation feedback received during the consultation period including the feedback from the Overview and Scrutiny Committee as set out in paragraph 2.26.
B Approve the draft Corporate Strategy following its refresh subject to the inclusion of the final financial information once the budget is approved.
C Approve the use of the Programme Response Fund in 2024-25 and 2025-26 to support the requirements of the English Devolution White Paper with any underspend on the Fund in 2024-25 being set aside in an earmarked Response Reserve.
D Delegate authority to the Chief Executive to approve the draw down of the Programme Response Fund in 2024-25 and 2025-26, and the earmarked Response Reserve, in relation to costs arising as a result of addressing the English Devolution White Paper.
E Approve the inclusion of the “Connect to Work” Get Britain Working initial funding of £100k split across 2024-25 and 2025-26. See paragraph 2.23.
F Approve the Draft Budget for 2025-26 and the Capital Programme & Medium-Term Financial Plan 2025-26 to 2028-29 as contained in Appendices C, D and E and including project reprofiling set out in Appendix F, subject to the reduction of the bus subsidy funding by £313k and a corresponding reduction of £313k in the transport levy to be divided between Cambridgeshire County Council and Peterborough City Council using the existing formula.
G
Approve a 2%
increase in the Transport Levy for 2025-26 totalling £14,039,563 - £10,277,774 from
Cambridgeshire County Council and £3,761,789 from
Peterborough City Council.Approve a 0.27% reduction in the Transport Levy
for 2025-26 totalling £13,726,563 - £10,048,640 from
Cambridgeshire County Council and £3,677,923 from
Peterborough City Council.
H Approve the usage of the 2025-26 BSIP revenue grant allocation to fund an extension of the local single journey bus fare cap beyond 31 March 2025 as set out in paragraphs 2.54 and 2.55, noting that the additional costs associated with the £2 fare cap retention from January to March 2025 will be the first call on the transport underspend in 2024-25.
I Note the Mayor’s intention to allocate Highways Maintenance grants totalling £37,369,000 to Cambridgeshire County Council and Peterborough City Council in line with the Department for Transport formula for determining each Council’s share resulting in the allocations of £29,793,213 and £7,575,787 respectively with more detail set out in paragraph 2.24.
J Delegate any minor changes required to the budget before 1 April 2025 to the Executive Director of Resources including the inclusion of grant announcements made prior to 1 April 2025.
Minutes:
The Executive Director, Resources, along with the Director Policy and Engagement, introduced the report, emphasising key points to members.
An amendment had been received: proposed by Councillor Anna Bailey and seconded by Councillor Chris Boden.
The CPCA Board notes:
· That the CPCA has adopted a benchmark of £12 per passenger journey in public subsidy for bus services
· The hard work that officers have put in to try to improve bus routes and ensure they perform at sustainable and justifiable levels of public expenditure
· That despite best efforts, based on currently available data, certain underperforming routes are operating at totally unrealistic and unjustifiable levels of public subsidy, which are costing the public purse far in excess of 10 times the £12 benchmark and in one case over 20 times
The CPCA Board further notes:
· The Mayor is proposing to increase the Transport Levy on Cambridgeshire County Council and Peterborough City Council by 2% in 2025/26, followed by an additional 4% in 2026/27, 4% in 2027/28 and 2% in 2028/29, reducing the amount the Highways Authorities have to maintain our roads and pavements.
The CPCA therefore agrees to the following additional recommendation:
· Subject to the reduction of the Bus Subsidy funding by £313k and a corresponding reduction of £313k in the Transport Levy to be divided between Cambridgeshire County Council and Peterborough City Council using the existing formula.
During the debate on the amendment, Councillor Anna Bailey highlighted the lack of changes in the worst-performing routes, emphasising the need for better oversight. Councillor Chris Boden proposed that the reallocation of funds equivalent to three bus services to reduce the levy for the highways authority would be a more sensible use of the money, diverting it to areas with greater demand.
A request was made to verify the accuracy of the passenger data, which was confirmed to be from 2023/24 with costing updates for 2024/25. The need for clarity in decision-making and the effective use of public money was highlighted, with work underway and suggestions to reconfigure routes with low uptake.
Questions were raised about the contract lengths for bus services, with an explanation provided about the 1+1 year contract model and the commitment to monitoring and evaluation. The importance of increasing ridership and the potential negative impact on residents who rely on bus services was emphasised. Reservations were expressed about the amendment, but there was support for better relationships with operators and up-to-date information.
Confirmation was sought that the amendment would not impact planned or current services, which was affirmed for the short-term of 2025/26 but that it would need to be revisited next year. Concerns were also raised about the amendment implying a formally adopted cap on subsidies. The common goal of providing the best value bus service and resolving legacy issues was acknowledged.
Following a request for clarification about the amendment, the Monitoring Officer confirmed that if a member of the Board was to vote in favour of the amendment it did not mean that the member concerned agreed with the preamble to the amendment put to the meeting by those members who moved and seconded the amendment.
On being put to a vote, the amendment was carried. The recorded vote is shown as below:
|
For |
Against |
Abstain |
Councillor Anna Bailey |
X |
|
|
Councillor Chris Boden |
X |
|
|
Councillor Sarah Conboy |
|
|
X |
Mayor Dr Nik Johnson |
X |
|
|
Councillor Dennis Jones |
X |
|
|
Councillor Lucy Nethsingha |
X |
|
|
Councillor Anna Smith |
X |
|
|
Councillor Bridget Smith |
|
|
X |
Nitin Patel |
X |
|
|
During the main debate, Councillor Bridget Smith sought clarification on the change and consolidation of funding for UK Shared Prosperity Fund (UKSPF), expressing concerns about the fair distribution of money across the region and the potential loss of local expertise. Officers confirmed that the UKSPF would be managed at the Mayoral Combined Authority (MCA) level, with decisions made by the Investment Committee in line with delegations, which includes representatives from each constituent authority and the Business Board. The Investment Committee can make decisions up to the value of £5m, but can refer decisions up to the Combined Authority Board where they feel it is appropriate.
Councillor Lucy Nethsingha expressed her enthusiasm for the trailblazer Youth Guarantee Programme, highlighting its importance in preventing young people from dropping out of education and ensuring their future employability. She praised the programme as a significant vote of confidence in the CPCA.
Raising concerns about the forecasted net impact of the employer's national insurance increase, Councillor Chris Boden highlighted that local authorities had only been partially reimbursed in the past. He cautioned against assuming full reimbursement for the CPCA.
Councillor Anna Bailey voiced opposition to the overall budget and the four-year term budget, citing residents feedback in the consultation. She criticised the proposals for the bus fare cap and the lack of a sustainable plan for the TIGER pass beyond the summer, describing these measures as short-term solutions.
Supporting the continuation of the UKSPF and emphasising the importance of constituent authorities' input, Councillor Anna Smith praised the positive initiatives in the budget, such as the TIGER pass and fare cap. She stressed the need for ongoing support to improve transport and rural connectivity.
The Mayor confirmed that based on the current forecast the TIGER pass could be funded until December and emphasised the importance of getting people out of cars and onto buses to build a better bus system. He highlighted the immediate goal of increasing passenger numbers as part of the longer-term priority of reforming the bus network.
On being proposed by the Mayor, seconded by Councillor Lucy Nethsingha, it was resolved to:
A Note the consultation feedback received during the consultation period including the feedback from the Overview and Scrutiny Committee as set out in paragraph 2.26.
B
Approve the draft
Corporate Strategy following its refresh subject to the inclusion
of the final financial information once the budget is
approved.
[7 for, 2 against, 0 abstentions]
C Approve the use of the Programme Response Fund in 2024-25 and 2025-26 to support the requirements of the English Devolution White Paper with any underspend on the Fund in 2024-25 being set aside in an earmarked Response Reserve. [UNANIMOUS]
D Delegate authority to the Chief Executive to approve the draw down of the Programme Response Fund in 2024-25 and 2025-26, and the earmarked Response Reserve, in relation to costs arising as a result of addressing the English Devolution White Paper. [UNANIMOUS]
E Approve the inclusion of the “Connect to Work” Get Britain Working initial funding of £100k split across 2024-25 and 2025-26. See paragraph 2.23. [UNANIMOUS]
F Approve the Draft Budget for 2025-26 and the Capital Programme and Medium-Term Financial Plan 2025-26 to 2028-29 as contained in Appendices C, D and E and including project reprofiling set out in Appendix F, subject to the reduction of the bus subsidy funding by £313k and a corresponding reduction of £313k in the Transport Levy to be divided between Cambridgeshire County Council and Peterborough City Council using the existing formula. [7 for, 2 against, 0 abstentions – recorded vote shown below]
G
Approve a 2%
increase in the Transport Levy for 2025-26 totalling £14,039,563 - £10,277,774
from Cambridgeshire County Council and £3,761,789 from
Peterborough City Council.Approve a
0.27% reduction in the Transport Levy for 2025-26 totalling
£13,726,563 - £10,048,640 from Cambridgeshire County
Council and £3,677,923 from Peterborough City Council.
[UNANIMOUS]
H Approve the usage of the 2025-26 BSIP revenue grant allocation to fund an extension of the local single journey bus fare cap beyond 31 March 2025 as set out in paragraphs 2.54 and 2.55, noting that the additional costs associated with the £2 fare cap retention from January to March 2025 will be the first call on the transport underspend in 2024-25. [7 for, 2 against, 0 abstentions, recorded vote shown below]
I Note the Mayor’s intention to allocate Highways Maintenance grants totalling £37,369,000 to Cambridgeshire County Council and Peterborough City Council in line with the Department for Transport formula for determining each Council’s share resulting in the allocations of £29,793,213 and £7,575,787 respectively with more detail set out in paragraph 2.24.
J Delegate any minor changes required to the budget before 1 April 2025 to the Executive Director of Resources including the inclusion of grant announcements made prior to 1 April 2025. [UNANIMOUS]
The vote split for each of the recommendations is shown above, with the voting for recommendation F and H recorded as below.
|
RECOMMENDATION F |
RECOMMENDATION H |
||||
|
For |
Against |
Abstain |
For |
Against |
Abstain |
Councillor Anna Bailey |
|
X |
|
|
X |
|
Councillor Chris Boden |
|
X |
|
|
X |
|
Councillor Sarah Conboy |
X |
|
|
X |
|
|
Mayor Dr Nik Johnson |
X |
|
|
X |
|
|
Councillor Dennis Jones |
X |
|
|
X |
|
|
Councillor Lucy Nethsingha |
X |
|
|
X |
|
|
Councillor Anna Smith |
X |
|
|
X |
|
|
Councillor Bridget Smith |
X |
|
|
X |
|
|
Nitin Patel |
X |
|
|
X |
|
|
Supporting documents: