Agenda item
Interim feedback from the Budget Scrutiny Task Group
The Budget Scrutiny Task group has held discussions with each of the Strategic Directors and the Deputy Leader regarding the proposed Budget options for 2015 – 2017. They will provide their initial feedback on the Budget options presented to Full Council in December which are currently the subject of consultation.
Minutes:
Councillor A Choudry, Chair of the Budget Scrutiny Task Group, introduced the report and invited Councillor Pavey (Deputy Leader of the Council) to respond to the draft task group report.
Councillor Pavey thanked members for the report and stated that he agreed with most of the points that it had raised. He welcomed the task group’s support for a two year budget that would provide more freedom of movement in the medium and longer term. Councillor Pavey then set out the areas in which he was in agreement with the report, in particular:
· The need for greater voluntary sector involvement
· Focus on digital solutions
· Attracting investment
· Addressing issues relating to the number of interim and temporary council staff which were being looked at in each service area
In respect of prevention, Councillor Pavey advised that there were already a number of initiatives that were being undertaken, such as those in public health. Members heard that the Cabinet report on 15 December 2014 had been candid in terms of equalities implications and Councillor Pavey felt that the savings were feasible.
Councillor Pavey then stated that he did not agree with the comment in the task group report that there had been a limited choice in budget options, adding that there had been a far larger number of options outlined than was necessary and he felt they were realistic.
Members then discussed the task group report. A member sought clarification with regard to the total budget savings over the two year plan and whether the funding figures as set out in table one of the report included council tax receipts and were these receipts expected to increase. Another member asked if council tax receipts would increase due to the rising number of residents and properties in the borough. A question were raised as to whether there would be increased revenue from higher parking fines. On the subject of treasury activity, the total income raised from the last year was requested and was the figure comparable with other London boroughs such as Camden and Ealing. Views were sought on how robust and effective the consultation on the budget had been to date and could more be down to improve it. It was also commented that there had been a feeling amongst some residents that their feedback from the Borough Plan consultation had not been reflected in the budget proposals. Concerns were expressed that the council would not have the capacity to address the impact on vulnerable residents as a result of Government savings on healthcare and welfare benefits. In addition, it was asked what was expected from the voluntary sector to help in this area and whether it had the capacity to undertake this and were there any budget figures available on this. The committee asked if there were any anticipated or potential shortfalls based on spend so far this year and was the budget essentially on target. It was also queried whether changes were being made too quickly for the council to be able to keep pace.
With the agreement of the Chair, Councillor Filson then addressed the committee. Councillor Filson broadly welcomed the report and in respect of options, he emphasised that this needed to be seen in the context of the need to make £35m savings in the first year alone and to ensure that in year savings targets for both years were met. He commented that not all organisational efficiency initiatives were as efficient as was intended and they can also impact upon the community. The implementation of the efficiency savings was also hugely challenging in view of the figures needed and consideration of the capacity to undertake it and within the timeframe prescribed was needed. Councillor Filson added that residents needed to be provided with details of how specific savings would affect services at public meetings such as the Brent Connects forums and this could include detailed hand outs with appropriate graphics.
In reply to the queries raised in the discussion, Mick Bowden (Operational Director – Finance, Finance and IT) confirmed targets of £35m savings for the first year and £19m in the second year. He confirmed that table one in the report referred only to the Government funding that the council received and in respect of council tax receipts there had been both an increase in the number of dwellings and those who were able to pay the full amount. This meant an increase to the council tax base of around 4% which equated to an additional £3.8m. Mick Bowden stated that he was not aware of any plans to increase parking fines fees. He advised that the total income from treasury activity for last year had been around £600,000 and this was around the average for London boroughs. He explained that the council’s treasury management strategy sought to keep cash deposits low because of the risks involved in the current economic climate. Members heard that it was felt that the budget was on track and no risks were envisaged for 2014/15, although there were some risks associated with 2015/16.
Councillor Pavey advised that there was a 96.5% council tax collection rate target. He informed members that the council’s reserves were low compared to other London boroughs and in terms of treasury activity, the high risks involved and low interest rates dictated its policy. In respect of consultation on the budget, Councillor Pavey stated that the first objective was to provide a broad picture of the current situation during the two planned large consultation meetings and in the next cycle of Brent Connects forums. Discussions would take place with the Leader and other Cabinet members as to how feedback from the Borough Plan consultation could be included in budget options. Councillor Pavey felt that the council was now much better at undertaking change management and he felt that the timescales could be met. In respect of the impact on vulnerable people, he stated that efforts were being made to build community resilience and an assessment of what voluntary organisations were capable of doing needed to be undertaken.
Councillor Allie suggested that the Investments and Pensions Manager be invited to the next Budget Scrutiny Task Group meeting. The Chair concluded by stating that there was still much work to do before the final task group report and the recommendations it would make.
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