Agenda item

To consider the reports of the Leader of the Council and Finance Manager and Deputy Section 151 Officer.

The Committee considered a report from the Leader of the Council setting out the framework of a new 3 Year Council Plan, which would give a clear strategic direction for the Council.

The report identified a number of activities that would result in a balanced budget over the next 3 years and sought to protect and enhance essential frontline services, retain sufficient skilled staff, and give local people better value for money as the Council cut its costs.

Attached to the report was a series of appendices which collectively comprised the Financial Plan.

The leader of the Council, the Finance Portfolio Holder and the Strategic Director Children and Families and Adults attended the meeting and answered members’ questions in relation to the budget report.

Councillors A Moran S Corcoran, L Brown also attended the meeting and asked a number of questions.

The Committee commended the budget for its imaginative, bold and adventurous approach, especially in connection with the proposals to make best use of the Councils assets and the introduction of a new development company, but acknowledged that this approach was not without its risks.

However there were individual items that would attract strong opposition from both within and without the Council. The Leader confirmed that items in the budget could be changed after it was set but if anything came out of the budget, then something new had to go in to maintain the totality of the budget. If a member voted for the budget at Council, he/she could still lobby on individual items afterwards.

With regard to risk, the Chairman commented that there were more savings to be achieved than in any budget he had seen before. There was a risk of those savings not being fully met, and this risk had to be managed. He added that he would put an item on the next committee agenda for members to select those savings that were the most sensitive, critical, and difficult to achieve.  This would mean that at the quarterly budget and performance reviews, each of these particular savings could be reported on, rather than the current system whereby intended savings are lost in overall figures.

The Chairman also warned of the risk of “double counting” of savings and gave the example of the same staff cost savings being counted as part of a service, but also as part of the corporate management review.

A number of specific points were raised including:

·         There was potential to unlock additional income in connection with land banks and the Council should continue to lobby government to allow the Council to  charge developers with land banks that had the benefit of permission for development;

·         That proposals for new delivery models within the Council  would free the Council from procedural constraints;

·         That any risks associated with unidentified savings on efficiency could be mitigated against through increased capital gains and the use of reserves;

·         That the Council should continue to strive to achieve efficiencies such as the  in-year savings which had been achieved in the current financial year through better use of gritting options during milder weather;

·         The new Council responsibilities in relation to the Social Fund and specifically the Council’s decision to move to the provision of goods rather than providing cash for recipients was designed to ensure that the Council maintained strong control over the quality of goods and supplies.

·         That the measures introduced in last year’s budget in connection with post 16 transport would be reviewed during the forthcoming financial year;

·         In response to concerns expressed by the Community Safety Scrutiny Committee about the proposed reduction of £250,000 in the CCTV budget, the Finance Portfolio Holder suggested that further consideration was required to achieve that saving but that it did not necessarily have to involve the switching off of cameras as savings had already been identified through reduced costs associated with new cable contacts and new shift patterns for operatives etc;

·         There was significant provision within the planning budget to deal with an anticipated but as yet  unpredictable level of  neighbourhood plans which were expected from Town and Parish Councils;

·         The funds emanating from the Community Infrastructure Levy, which would come into force when the Local Plan had been formally adopted, would be specifically earmarked for infrastructure improvements;

·         The Council already benefitted significantly from the government’s new homes bonus scheme;

·         The Council had to remain vigilant in respect of financial pressures  beyond the control of the Council in relation to general inflation and expected increased energy costs.

RESOLVED – That the content of the report and discussion of the points listed above be noted.