Agenda item

To consider and provide any recommendations on the content of this report that will be reviewed and responded to by the Cabinet prior to the final budget recommendations being made to the Full Council.

In accordance with Overview and Scrutiny Procedure Rules, Councillor Connor took the chair for this item.

Councillor Connor in the Chair

Councillor Arthur introduced the report as set out and responded to questions from the Committee.  NOTED:

-       The Government had chosen a 4 year settlement which would help with more strategic approach.  After analysis, many of the assumptions and forecasts that had been made by the Council have largely been correct. 

-       The Government has changed the way of assessing how councils are able to fund themselves – now called ‘core spending power’.  On face value, the core spending power of the Council will increase by 1.6%, but when inflation is taken into account there will actually be a reduction of about 5.7%.

-       Budget challenges – the recommendation was that the Council stick to the plan outlined last year.  A key change will be around the social care precept and the proposal was that Council take on the social care precept (around £1.7m).

-       Contract management – the Council was looking to implement a completely new model on how contracts are commissioned, how outcomes are monitored and to provide greater visibility to the public with regard to outcomes. 

-       Business rates – the MTFS assumes that growth has to be the key driver of financial sustainability of the council.  Consultation was currently being carried out with businesses and voluntary sector with regards to the Business Rates policy (which had not been renewed since 1990).

-       Council tax precept – the rationale behind not increasing the Council Tax by a further 1.99% to raise additional revenue was due to many reasons including that Labour Councillors had an obligation to meet manifesto commitments to not raise Council Tax, and the impact on residents, particularly those who were under increased pressure due to the abolishment of council Tax Benefit.

-       Dementia day care centres – although these centres were used by some people, they are unsustainable, and therefore it was thought that the £1.7m earned from the precept would be put to better use by supporting a wider range of users via care packages.  The Council recognised that people valued these centres, but at a time of increased financial pressures it was important that to deliver the best value for the widest pool of residents.  There was a £500k savings proposal attached to care packages in 2016/17, so if the social care precept income could be used to improve these packages then it would be the right decision. 

Following further discussion with regards to day care centres, the Chair suggested two recommendations to the Committee:

Recommendation 1 – “To use the £1.7m Council Tax precept in light of the co-design outcomes in particular in relation to dementia and learning disability day care support”

Recommendation 2 – “That Cabinet should ensure sufficient flexibility in adult care budgets to support where possible the outcomes of co-production exercises”.

The Committee voted in favour of recommendation 2.

RESOLVED that Overview and Scrutiny Committee recommend to Cabinet:

1.         That Cabinet should ensure sufficient flexibility in adult care budgets to support where possible the outcomes of co-production exercises.

2.         That Cabinet should ensure a comprehensive financial risk register is maintained and updated, and considered at Cabinet on a quarterly basis.

3.         That as part of financial risk management, Cabinet should consider and confirm a strategy to ensure adequate levels of reserves across the MTFS period.

4.         That Cabinet should confirm arrangements for reviews of savings plans in 2016/17 (para 5.1.i) and ensure that OSC is consulted on the outcome of those reviews and any proposals made.

5.         That Cabinet should consider further sources of income for the Council, and opportunities to maximise income from all sources, report and  update OSC and Scrutiny Panels on income maximisation as appropriate.

6.         That individual Scrutiny Panels should monitor budgets in the priority areas they oversee through 2016/17, and report formally to OSC after Q2; and that OSC should formally consider overall budget performance after Q2 and make recommendations as appropriate.