Agenda item

The Interim Strategic Director – Business Change introduced the report detailing the efficiency savings that are proposed as part of the budget setting process for 2017 – 2022. The information was complimentary to the Draft Corporate Strategy 2017-2022, Business Plan 2017/18 and Medium Term Financial Plan 2017/18 – 2021/22.

The following points arose from discussion:-

1. The Interim Chief Executive stated that the freeze on spending was an unprecedented action and was a consequence of the extreme financial pressure the Council was faced with. Savings had been made with one off contributions but there was a need to protect reserves as departmental spending had not decreased. The Council was now at a point where the ‘easy things’ had been done and members would need to make difficult choices in the context of the legislative framework. Officers would be able to provide a range of options for balancing the budget but members may not be happy with the decisions they had to make. The budget would be balanced through continued savings and through protecting reserves. Spending was not frozen for matters of health and safety and where Managers could demonstrate a pragmatic need to spend;
2. The Interim Strategic Director – Business Change stated that the Leadership Team had been open and transparent to members regarding the challenges faced and the Transformation Programme proposed, and whilst the programme had not yet been fully documented, all measures taken would satisfy the Council’s external auditors;
3. A Councillor expressed great concern at the level of savings expected to come from the People budget. He asked that the surplus from parking revenues be kept in the transport field and not redistributed. He noted the proposal to remove the 30 minutes free parking rule and believed this would damage the ongoing process of RPZ as this concession had made the current schemes palatable for a lot of people. He believed the £675,000 proposed savings was based on spaces being occupied all of the time and a parking attendant being there and was not therefore a viable figure. With respect to Housing Services, he suggested that the only way the service could be turned around was to move it into the Private Sector where efficiencies could be achieved. He noted in particular that other, smaller Councils with retained stock had made those efficiencies. The analysis had not made in-roads into landlord Services. In response, he was informed that it was a legal obligation to spend income generated from parking services on transport matters. The Mayor had made a statement on the 30 minute parking rule and this was read out to the Board. The Interim Chief Executive agreed that more work was needed on Housing Services’ efficiencies, particularly the management of facilities. A revamped business plan was proposed for next year;
4. A Councillor observed that the freezing of wellbeing budgets for Neighbourhood Partnerships would have a huge knock-on effect for small organisations reliant upon grants;
5. A Councillor was very concerned regarding the freeze and could not see how it would save a huge amount of money. He expressed particular concern regarding the CIL money raised for parks from affordable housing. It was unfair to freeze this and also bad for business. It was better to allow CIL money to be spent and give the parks staff useful work to carry out. In response, the Interim Chief Executive advised this point would be taken into account as part of the Parks Management consultation process and would be evaluated before recommendations were produced. Parks staff were clear that incidental spending to keep them occupied would continue. Advice was currently being sought regarding the use of CIL but it was a non-ringfenced grant and therefore was capable of being spent on a variety of things. The Section 151 Officer added that books would be balanced ‘in year’. There was an imperative to have a sustainable budget going forward and the freeze on spending was a temporary one in order to gain a clear view. An exception could be made if it could clearly be demonstrated that the spend was grant funded;
6. A Councillor expressed her surprise that the spending freeze had not come sooner to encourage staff to be more prudent. She was concerned with the manner with which the spending freeze had been communicated and would have preferred an e-mail providing greater detail. The Interim Chief Executive agreed that delivery of the information could have been handled more effectively and apologised for the oversight;
7. A Councillor observed that NPs (Neighbourhood Partnerships) were partly through a cycle regarding their wellbeing spends and asked whether there was any flexibility for these grants to be honoured. The Interim Chief Executive confirmed that the purpose of the freeze was to reduce spending not to defer it as that would not produce the savings required. The future of the funding would be   a political decision.  The Chair expressed concern as a spending ‘freeze’ suggested a deferral. There was real engagement with wellbeing grants and this was being removed without consultation. It was noted that individually the grants were small but in total they were significant as they amounted to £700,000; The Interim Chief Executive noted the concerns and agreed to discuss the matter with the Mayor and Cabinet;
8. Members were asked for their ideas to make additional savings.
9. The Interim Chief Executive stated that no firm decisions had been made about which savings would go forward into the budget proposals and consultation findings would inform the outcome. It was agreed that the first cut of consultation responses would be circulated to members. The responses would then be summarised by themes and be publically available;
10. The Chair, in summary, noted that it would be prudent to hold another Extraordinary OSMB after Cabinet dispatch of papers for its January meeting but before Budget Full Council. It was agreed to circulate the consultation papers for Cabinet on 24 January to all Members. He thanked staff for the huge amount of work undertaken in putting the information together.

RESOLVED – that the Board notes the contents of the report.