Agenda item - Strategic Risk Management Action Plan Focus SR2 Financial Outlook; SR11 Welfare Reform

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

15.1         The Committee considered a report of the Executive Director of Finance & Resources in relation to the Strategic Risk Management Action Plan Focus: SR2 – Financial Outlook; and SR11 – Welfare Reform. A Risk Management Action Plan for each risk was owned by a member of the Executive Leadership Team (ELT). At each meeting of the Committee there was focus on two risks to ensure all risks received attention over the municipal year. The risk owner responsible for delivery of actions to mitigate the risk attended to allow the Committee the opportunity to understand further background to the risk and the actions taken.

15.2         The Head of City Services provided an overview in relation to SR11 – Welfare Reform. She explained that the Government stance had created three strands of work for the Council that related to: devolved powers to local authorities; implementing policy changes as an instrument of central Government and managing the impact on the Council’s own customers of those changes wholly outside our remit. In relation to the first area the Council was now required to run it’s own localised scheme of council tax reduction that had previous been operated by the Department of Work and Pensions (DWP)  – the localised scheme had been approved by the Policy & Resources Committee and the Full Council, and had been running since April 2013. The Council also now had a responsibility for its own localised social fund scheme which again has been running since April. In relation to second area – implementing policy changes – the Council had implemented Government changes to local housing allowances in the private rented sector, and from April the new “under-occupation” rules for people in the social housing sector with a spare bedroom. It would then administer the benefit cap mid year as the government had delayed the start date of this. Thirdly there were changes due to create universal credit which would simplify a number of benefits into one – the work would be rolled out from October 2013 and completed by the end of 2018. Other examples of where the Council had no control but there were potential impacts for customers includes changes to incapacity benefits and disability living allowance with Government projections that there would be a reduction in the numbers eligible to claim.

15.3         To undertake all this work there was clear governance across all departments, and a programme director who had two full time Officers with a specific senior cross Council group tasked to look at welfare reform. In addition there was a cross Council project board working to understand the changes and look at how to manage this; as well as a wider citywide overview group that involved different stakeholders. Detailed briefings had also been prepared to ensure that information was properly shared and disseminated across the city, and reports would be considered at the appropriate Committees.

15.4         The Executive Director of Finance & Resources provided an overview in relation SR2 – Financial Outlook. The outlook remained challenging for the Council, and the national trend continued to see an environment of funding problems for local authorities. The Council continued to plan in the best way possible, and proactive responses were essential to protecting services. The long-term financial plan had been kept up to date, and it had been useful to have public health functions within the remit of the authority for more sophisticated demographic projections. Work had been undertaken to keep the corporate plan and the medium term financial plan as closely linked as possible. There was a lot of time and effort being spent on the consultation and engagement aspects, and it was recognised that this work was key to ensuring people understood the changes and to help to Council reach the right sort of settlements. It was important that decisions could be taken where services and budgets were connected to reduce the difficulty involved with implementation. Work was continuing on understanding the changes to Council Tax; especially in relation to exemptions and also the introduction of the business rate retention scheme – which the Council had not previously needed to understand. The work to understand the tax base would take some time, and the ability of the Council to cope would these changes would rely on a political settlement as well as city wide settlement of the budget – there was a cross-party group of Members to look at these issues.

15.5         RESOLVED – That the Committee note the information provided by the risk owner.