Agenda item - Budget - James Hengeveld Presentation

144.1   Mr Hengeveld gave an overview  on the current and future financial position, the gaps in funding and potential risks to Brighton and Hove City Council's financial situation. He advised members that the council would not know its financial settlement until mid to late December, which would then lead to a budget being set in February 2016.

Mr Hengeveld outlined that the Council in 2015/16 spent £772.6m and that the largest amount was spent on Schools & education £183.4m, Housing Benefit £165m and thirdly Adult Social Care £109.2m.It was also the case that Council Tax only raised £112m which was only 15% of money spent. Much of the monies spent by the Council was ring-fenced and with inflation on ASC services rising more than RPI. There were further impacts to come on ASC from NIC changes, the living wage and public health cuts which at present unclear. There were overspends on Adult Social Care and the Council was taking steps to control costs through freezing recruitment and other measures
 
Members heard that there were projected overspends in  adult social care, children's services and homelessness, all of which were demand led services with a great deal of inherent uncertainty about demand for services. 

144.2   Mr Hengeveld answered questions from the committee and from members of   the public.

144.3   In response to a question about whether the council worked in partnership with other neighbouring authorities in order to make savings, Mr Hengeveld said that this was being considered, for example in sharing support services across councils. The council was looking at all its services and considering whether they still needed to be provided, and if so, was there an alternative provider who might be more appropriate. Everything was being considered.

144.4   In response to a question about what would happen if a local authority was to become bankrupt, Mr Hengeveld said that it was likely that central government would intervene and make changes, possibly without taking local need into account.
 

144.5   In response to a question about the use of consultants, Mr Hengeveld said that there were occasions when consultants were the most effective way of carrying out a specific service, but in other instances they may be more costly than needed. This was under review along with other arrangements.

Councillor Barford said that there are some roles where consultants are needed but agreed that the council should tap into skills in the city more. Community empowerment was part of the work that the Neighbourhood Communities and Equalities Committee would be looking at.
 

144.6   In response to a question about the potential scale of job losses, Mr Hengeveld said that approximately 30% of council spend was on staffing costs so this would be reduced in line with budget pressures. Some staff may be redeployed, retire or find alternative employment, others may be TUPEd to an alternative service provider.

144.7   In response to a question about selling assets, Mr Hengeveld said that this was always under consideration. Kings House was going to be sold when staff could be moved to Hove Town Hall, Buckingham Road property had been sold However there was a trade off as commercial property brings in high rents so this would be lost if the property was sold on.

144.8   In response to a question about what central government wanted local government to look like by 2020, Mr Hengeveld said that his view was that the Government intended councils to be more self reliant, generating their own resources and living within their means. There was any number of ways that this might be achieved, and very little is yet known.

144.9   An attendee commented that it felt that the direction of travel was for the council to commission services with very little care for the outcome. How could we maintain the quality of social care?

Councillor Karen Barford responded as the lead councillor for Adult Social Care. She said that she understood the concerns and that the intention would always be to support the residents that were assessed as having an adult social care need. The service delivery model may change but the intention would be the same.

Councillor Karen Barford responded as the lead councillor for Adult Social Care. She said that she understood the concerns and that the intention would always be to support the residents that were assessed as having an adult social care need. The service delivery model may change but the intention would be the same

144.10                Members commented that the budget was under further pressure due to the expansion in the number of student houses; this reduced the Council Tax income that could have been raised if a non-student household had lived there.

144.11 Members commented that a tourist tax would help raise much needed funds for the city.

144.12            Members commented that concentrating Adult social care resources on those in most need meant that there would be very little in the way of preventative services. This would mean that those people might well deteriorate until they needed the higher level services. This would incur higher costs for the system as a whole, particularly as people ended up in hospital. Councillor Barford commented that prevention plays a key role in the ASC Direction of Travel report.

144.13The Chair thanked Mr Hengeveld for his presentation and  his time.