Issue - meetings

To consider and comment on the Council’s draft 5 year (2017/2018 to 2021/2022) Medium Term Financial Strategy proposals relating to Priority X only.

Councillor Connor in the Chair.

Councillor Connor took the Committee through each of the proposals and asked for comments from the Committee and clarification from officers.  NOTED:

-           Legal Services – reduction in staffing and other related expenditure

The savings reduction was predicated on a reduction in demand on Legal Services as a whole.  The expectation was that as demand for childrens and adult services fell, so would the demand for legal services.

The Committee noted the proposal, and that it was contingent on a reduction in demand, meaning it perhaps should be rated as ‘amber’ rather than ‘green’.

-           Audit and Risk Management – reduction in cost on the external audit contract

This proposal was based on the changing risk profile of the Council.

The Committee noted the proposal, and agreed that a note be provided for the Corporate Committee to seek its views on this reduction.

-           Democratic Services – reduction in staffing

There would be a reduction in support to internal areas of the Council to ensure that the Committees would still be supported.

The Committee noted the proposal.

-           Shared Service Centre Business Support – reduction in staffing

There would be little or no impact on customers with this reduction, as this related to back-office staff and included more efficient practices.

The Committee noted the proposal.

-           Shared Service Centre – new delivery model for shared services

The Committee noted the proposal.

-           Reduce opening hours in our six branch libraries to 36 hours per week

Following an outline by Councillor Vanier, the Committee noted that the Unions had been briefed on the proposals, and detailed consultation would be carried out with Unions and staff, along with the ‘Friends’ groups of the libraries, on the best use of hours for each branch if this proposal went ahead.  There would be no lone working. 

The Committee referred to the deputation made earlier in the meeting and agreed on the importance of libraries to the local community.

The Committee agreed to recommend that Cabinet did not agree to this proposal.

-           Shared Service Offer for Customer Services

It was not possible to say what the impact would be to customers and residents until a detailed options appraisal had been carried out.

The Committee noted the proposal.

-           Senior Management Saving

Further information on this saving would shortly be provided in a report to the Council’s Staffing and Remuneration Committee from the Chief Executive, but it would mean the deletion of one senior post at least.

The Committee noted the proposal.

-           Alexandra House – Decant

The proposal was to continue to vacate underused floors at Alexandra House and utilise underused space at River Park House, following a significant increase in rent at Alexandra House.  There would be minimal impact to staff as the Council operated a clear desk / hot desk policy.  In relation to accessibility requirements, Managers would be aware of their staff requirements and adjustments would be made where required.

The Committee noted the proposal.

-  ...  view the full minutes text for item 88

To consider and comment on the Council’s draft 5 year (2017/2018 to 2021/2022) Medium Term Financial Strategy proposals relating to the Scrutiny Panel’s remit (Priority 2).

Councillor Jason Arthur, Cabinet Member for Finance and Heath, introduced proposals within the draft Medium Term Financial Strategy (MTFS) relating to Priority 2 of the Corporate Plan. He stated that they needed to be seen within the context of the very severe cuts that there had been to local government funding since 2010. It was noted this had impacted considerably on the Councils ability to provide services, especially in the light of increases in demand. It was noted that at Quarter 2 (September 2016) the Council was projecting a full-year deficit of £22m.

The Panel was informed that the draft MTFS used the last year of the approved MTFS (2017/18), adjusted for known changes, and added a further four years (2018/19, 2019/20, 2020/21 and 2021/22). Councillor Arthur explained, after taking into account anticipated funding reductions, demand pressures and a review of the base financial position, including the achievability of previously agreed savings, that further savings were required to bridge the resulting budget gap.    

In terms of proposals, relating to Priority 2 of the Corporate Plan, Cllr Arthur explained that officers had developed proposals to address the budget gap with a particular focus on: partnership working; promoting independence; asset utilisation; and fees and charges.

The following issues were considered in relation to demand pressures for adult social care:

-       It was noted increasing client numbers, particularly those requiring relatively high levels of care, was a key reason for the gap.

-       The fact that pressures experienced in Haringey were consistent with wider national trends in health and social care, with demand for services far outstripping resources.

-       The importance of rebalancing resources, as part of the 2017/18 – 2021/22 MTFS, to support growth/demand pressures in adult social care.

Following the Panel’s budget monitoring meeting, held on 17 November 2016, it was agreed information on demand/budget pressures relating to adult social care, provided by the Corporate Delivery Unit, had helped to improve understanding on a range of issues.

During the discussion, reference was made to a recent announcement from the Secretary of State for Communities and Local Government concerning a £240m transfer from the New Homes Bonus to adult social care funding and confirmation that local authorities would be able to raise the council tax precept for care by 3% in the next two years (2017/18 – 2018/19). However, it was noted that the net increase of the social care precept would need to remain at 6% over the next three financial years, meaning if councils chose to levy 3% in both 2017-18 and in 2018-19, they would not be able to raise a precept in 2019-20. Cllr Arthur explained Haringey’s approach to the precept would be considered as part of the wider work that was taking place to finalise the MTFS for 2017/18 – 2021/22. A variety of issues were also considered, including:

-       The Improved Better Care Fund allocations.

-       Developments concerning Haringey’s Integrated Target Operating Model (ITOM).

-       The key cost drivers for adult social care i.e. the number,  ...  view the full minutes text for item 47