Agenda item

Bristol City Council launched its draft five-year Corporate Strategy and Medium Term Financial Plan, along with a draft one-year 2017/18 Business Plan on 13^th October 2016. Each Scrutiny Commission will consider their relevant Business Plan sections at the Scrutiny meetings in October and November 2016. Scrutiny of the Corporate Strategy will be managed by Overview and Scrutiny Management Board.

The Board received a report on the draft Corporate Strategy 2017-2022, Business Plan 2017/18

& Medium Term Financial Plan 2017/18 – 2021/22 (including the draft financial and saving

proposals contained within it), for consideration and comment.

It was noted that Bristol City Council had launched its draft five-year Corporate Strategy and Medium Term Financial Plan, along with a draft one-year 2017/18 Business Plan on 13th October 2016. Each Scrutiny Commission would consider their relevant Business Plan sections at their respective meetings during October/November 2016. Overall scrutiny of the Corporate Strategy would be managed by the Overview and Scrutiny Management Board.

The Chair pointed out that he was aware of concerns about current spending pressures but emphasised that the report for consideration at this meeting centred on how the Council should go forward with its longer term Corporate Strategy including assumptions and how the budget engagement would work.

The Chair referred to an ongoing investigation and review about the current spending pressures and that a future report would come to OSMB. The Chair also recognised that his position as Chair could cause some confliction and that it would be appropriate for the Vice Chair to chair that meeting for this reason and so that he could contribute to it in a more significant way. It was important that members did not get distracted about past arguments and delay dealing with the pressures faced by the Council while the investigation was taking place.

A presentation was then given by the Interim Service Director Business Change outlining the current situation, the Medium Term Financial Plan Budget Assumptions and why it was necessary to have a robust Corporate Strategy in place.

Summary of points raised during the discussion –

1.      The overspend had not been added to the already known £92m savings that were required and therefore there was a greater need to explain to the public about the Corporate Strategy;

2.    Council Tax and Business Rates would be increased by 1% to a total of 1.95%;

3.    A recent parliamentary bill (Higher Education and Research Bill?) related to non - payment of the education grant might have an impact on the Council’s budgetary situation. More work was required to assess the actual impact this would have;

4.    New homes budget assumptions appeared quite modest however caution was needed as the Council was aiming to build a significant number of affordable homes;

5.    There was a financial commitment for adult social care throughout the new administration’s term of office as the Council had no choice but to make provision. Members recognised that adult social care was nationally in crisis not just Bristol;

6.    Assumptions for adult social care spend needed to be continually tested and reviewed;

7.    Financial issue query raised by Councillor Hopkins relating to the Bristol Waste Company. Information not available at the meeting, Interim Service Director Business Change to provide to Councillor Hopkins after the meeting;

8.    Comment made about the efficacy of the online consultation process and whether it could be made more ‘user friendly’, concern expressed for those without online access. Greater local councillor and neighbourhood partnership involvement was discussed. Acknowledged that 400 responses had been received by the Mayor’s office so far.  Members were informed that the budget process was on a very tight timescale and that there was a statutory duty to set a budget in an environment which was under significant pressure due to less resources following previous budget reductions;

9.    Reliance on savings from greater efficiencies, estimated at two thirds, was not clear and this type of cost reduction would indirectly have a ‘knock on’ effect on front line services; 

10.Members were informed that considerable work was already being undertaken on consultation and any increased spend on this would inevitably lead to a spending  reduction elsewhere and in the current financially restricted environment it was not clear where that should fall;

11.Suggestions made to simplify the public consultation questionnaire and perhaps ‘stagger’ the process so less daunting to public wanting to engage in the process;

12.Reference to KPMG report relating to income generation, recognised that more work needed to be done on this. Options were being considered including the growing of existing sources of income in addition to finding new sources. Recognised however that spending would still need to be ‘pushed back’;

13.Concern expressed about possible impact of public health budget reduction and the possible need for a second budget scrutiny meeting to dovetail this with other budget reduction considerations;

14. Interim Service Director Business Change suggested that the next meeting of the OSMB could be in the form of a ‘Workshop’ followed by a short formal meeting to explore ideas and suggestions further. The Chair proposed that options be discussed after the meeting in consultation with members of the Board, this was agreed;

15.A member mentioned that Oxford County Council had waived rental charges for children’s centres and asked if Bristol City Council could do the same. Chief Executive agreed to look at this but emphasised that there would have to be savings made elsewhere if this particular option was taken;

16.  Other suggestions to reduce spend were made as well as possible impacts for future spends such as increased housing requiring additional council services. The Chair asked members to submit comments and suggestions to Councillor Cheney Cabinet Member for Finance, Governance and Performance.