Agenda item

To consider a report of the Interim Executive Director of Corporate Services.- To Follow.

Councillor Paul Bates, Portfolio Holder for Finance and Communications introduced the Medium Term Financial Strategy 2018-21.  Councillor Bates outlined that Cheshire East Council delivered approximately 500 local services daily and reflected some of the positive key performance, he also acknowledged that local government grant funding would continue to reduce throughout 2019-20 with no confirmation of funding levels.  Central Government continued to build in flexibility to enable local authorities to use local tax raising powers to fund services such as Adult Social Care.

Jan Willis, Interim Executive Director of Corporate Services, outlined the main changes to the budget since the Pre-Budget report.  The Strategy reflected the provisional settlement however the final settlement was yet to be confirmed which meant the final changes could not be incorporated into the report before going to February Cabinet.

Jan noted that the provisional settlement showed the New Homes Bonus was in a better financial position than previously forecast in the Pre-Budget Report.

Budget proposals had ben modified based on the Pre-Budget Proposal Consultation to reflect savings made in Highways and modified proposals for libraries.

Councillor Davenport suggested that that Proposal 79- Community Library Provision should reflect the footfall of visitors.  Sean Hannaby, Director of Planning and Sustainable Development, advised that the comments in the report related to all libraries and not just Prestbury, Alderley Edge and Disley as the three listed.

The Committee noted an overspend in the People directorate and asked if there was going to be further overspend in 2018/19 or if these pressures were being mitigated for 2019/20.  Councillor Janet Clowes, Portfoilio Holder for Adult Care and Integration advised that the pressures were ongoing and rising, by 2020 there would be a 30% increase in over 75 year olds which would result in more cases of complex health care needs.  Also, there was a large cohort of young people transitioning into adulthood with complex needs, care packages to accommodate these people would be needed in 2018/19.

Jill Broomhall, Director of Adult Social Care Operations noted that the Association of Adult Social Care had published a paper that documented the dangers of people remaining in long term care.  The biggest risk for this Authority was provider failure.

Councillor Davenport advised the Committee that the Environment and Regeneration Overview and Scrutiny Committee had two proposals, one on a Highways Contract and the other on the Car Parking Strategy, to add to the overall recommendations to Cabinet from this Committee.

The Committee noted that on page 151, the pre-amble to the Community funding from New Homes Bonus was worded in a potentially leading way.  Jan advised that the budget report would not specify a mechanism by which the funding would be spent, only that it should be made available to communities.

RESOLVED- That:

(a)  Jan and contributing officers be thanked for their attendance and contributions; and

(b)  the report be received and noted.

That the following comments be submitted to Cabinet for its consideration:

1)    Further consideration be given to the proposed £500k revenue saving relating to the Highways Contract, and that if the saving was to be made, assurance be given that this would relate to efficiencies rather than a reduced level of service.   However, it was noted in the meeting that this saving had since reduced from £500k to £150k;

2)    the Car Parking Strategy ensures a Parking Policy that was fair to all residents of the Borough;

3)    when the final version is approved, that consideration be given to the wording of the budget line “Changes to Community Libraries” to remove the references to Alderley Edge, Disley and Prestbury and instead to read as ‘All libraries’;

4)    The Committee requested that analysis information be supplied to Corporate Scrutiny to show how the forecasted figures for the Parking Strategy were determined.  Members noted the piece of work had not yet completed and queried how the -£0.355 had been reached;

5)    consideration be given to the wording in the Forward from the Finance and Communication Portfolio Holder specifically the section Community funding from New Homes Bonus.  The current wording “…to set aside £2m and allow local communities to determine how this money will be spent.” needs to be reconsidered particularly as Corporate Scrutiny has yet to offer suggestions for a scheme to establish how these funds could be spent.  Similarly the budget line “New Homes Bonus Community Fund” is worded “…building on the Council’s participatory budgeting approach.”  Could consideration also be given to this wording as Corporate Scrutiny has not yet carried out the piece of work to offer suggestions for how these funds could be spent.

6)    Cabinet be asked to give consideration to the inclusion of Scrutiny in any future pieces of work or considerations on “External income- Fees and Charges”; and

7)    the Corporate Scrutiny Committee ask that Cabinet be asked to formally acknowledge these comments in the minutes of the meeting.