Issue - items at meetings - Budget Planning & Resource Update - Integrated Service and Financial Plan initial proposals 2016/17 - 2019/20

Report of the Interim Executive Director for Finance & Resources (copy attached).

1)             Notes the updated forecasts for resources and expenditure for 2016/17 and an estimated budget savings requirement for 2016/17 based on two council tax propositions.

2)             Notes the approach taken to identifying savings in the context of the council’s draft Corporate Plan and Medium Term Financial Strategy.

3)             Notes the detailed draft proposals for savings in 2016/17 towards meeting a budget gap based on a council tax increase of 1.99% or a council tax freeze.

4)             Notes the 4 year Service & Financial Plans and projected 4-year draft savings proposals at Appendices 1 and 2.

5)             Directs that all of the draft savings proposals identified at Appendices 1 and 2 be subject to further consultation and engagement, meeting statutory requirements where required.

6)             Notes the indicative allocations of one-off resources for 2016/17 set out in table 1 subject to the identification of sufficient further one-off resources to fund the proposed allocations.

7)             Notes the update on the HRA budget set out in paragraphs 3.27 to 3.30.

8)             Notes the Capital Investment Programme update set out in paragraphs 3.31 to 3.33.

81.1       The Committee considered a report of the Interim Executive Director for Finance & Resources. The report set out the draft 4 Year Service & Financial Plans that included detailed savings for 2016/17 and summary savings totals for the remaining 3 years to 2019/20. Proposals were presented in this way, as although savings over 4 the year period could be reasonably assessed, the exact profile and timing of savings in later years might fluctuate.

81.2       Councillor Sykes highlighted that the difficult budget position before the Council was the direct result of policy from National Government; however, the situation had been made worse both the Labour and Conservative Groups backing a Council Tax freeze during the previous Green Administration leading to under inflation Council Tax rises; furthermore the proposed reduction in the Council Tax Reduction Scheme would impact some of the poorest families in the city. Whilst the Green Group considered some areas to be sensible, such as the 4 year budget planning, they considered the reduction in the level of scrutiny and consultation, given the size of the proposed cuts, to be unacceptable. Councillor Sykes also asked that the Leader do more to challenge Central Government on the difficult financial position for the authority.

81.3       Councillor G. Theobald took the opportunity to thank the outgoing Interim Executive Director for Finance & Resources for her commitment to the authority over the last 12 months.

81.4       Councillor G. Theobald went on to add that the Administration needed to do to find innovative and creative solutions to address the budget gap and be more forthcoming about their priorities. He stated that the Conservative Group had considered abstaining, but would support the recommendations on the basis of the information contained in the report.

81.5       Councillor Mac Cafferty echoed the remarks made by Councillor Sykes, and went on to state that the Administration were front loading cuts without enough consultation; he felt this approach was too much and too soon. In relation to consultation he stated that a proposed Green amendment at the June meeting of the Committee had not been agreed and the Administration were seeking to impose some of the biggest cuts to the budget with reduced consultation. He also expressed concern in relation to changes to the libraries services and subsidised bus services, and argued that many of the poorest families in the city would be hardest hits by budget savings.

81.6       Councillor Janio highlighted that budget position would have been equally as challenging for whichever party formed the Administration following the May Local Elections; he hoped that all Groups could work together to form sensible proposals to deliver the necessary budget savings, though he queried if the 2016/17 programme was too ambitious.

81.7       Councillor A. Norman echoed comments from other Members within her group; she added that some of the proposals to change how services were delivered were in line with service users wishes.

81.8       The Chair highlighted that the proposed consultation was set out in the report, and added that he had recently met with the Secretary of State for Communities & Local Government and highlighted the very difficult position in relation to the authority’s finances. He went on to state that the proposals in the report would go most of the way to achieving the necessary savings; however, the full settlement would not be known until just before Christmas. He highlighted the city innovation challenge that would run as means to unlock potential creative solutions to help keep services running – offering five £1,000 prizes for the best ideas.

81.9       Councillor Hamilton stated that he had listened to the other points in the debate and hoped that the other Parties could support the proposals. In relation to the current overspend he was hoping this could be rectified in year, and noted that at this point the budget was still interim as many aspects were not known in full.

81.10    The Chair then put the recommendations to the vote.

81.11    RESOLVED – That the Committee:

1)        Notes the updated forecasts for resources and expenditure for 2016/17 and an estimated budget savings requirement for 2016/17 based on two council tax propositions.

2)        Notes the approach taken to identifying savings in the context of the council’s draft Corporate Plan and Medium Term Financial Strategy.

3)        Notes the detailed draft proposals for savings in 2016/17 towards meeting a budget gap based on a council tax increase of 1.99% or a council tax freeze.

4)        Notes the 4 year Service & Financial Plans and projected 4-year draft savings proposals at Appendices 1 and 2.

5)        Directs that all of the draft savings proposals identified at Appendices 1 and 2 be subject to further consultation and engagement, meeting statutory requirements where required.

6)        Notes the indicative allocations of one-off resources for 2016/17 set out in table 1 subject to the identification of sufficient further one-off resources to fund the proposed allocations.

7)        Notes the update on the HRA budget set out in paragraphs 3.27 to 3.30.

8)        Notes the Capital Investment Programme update set out in paragraphs 3.31 to 3.33.