Agenda and minutes

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RESOLVED:-

that the minutes of the previous meeting held on 11 February 2010 be approved as an accurate record.

The Director of Finance and Corporate Resources will give a presentation of some of the main factors which will influence the budget process. This will include details of the recent government announcements on funding for local government and likely service pressures. Members will be able to use the question and discussion session to help set the future work programme for the panel.

The Director of Finance and Corporate Resources gave a presentation on the 2011/12 budget and the medium term financial strategy. He referred to the 2010 outturn and the reasons behind underspends and overspending for example in adult social care. He advised that current savings targets were similar to those projected in March 2010 with the exception of adjustments for anticipated reductions in government grant levels. The Director advised of various government spending announcements released following the election of the coalition government in May 2010 which advised of imminent funding reductions. Performance Reward grant funding had been withdrawn, an emergency budget announced in June advised of a further £30bn public sector cuts by 2014 on top of £44bn previously announced and housing benefit changes were expected to seriously affect a significant number of households. Additionally, councils were expected to freeze council tax levels. The result was that those local authorities with the higher levels of deprivation were worst affected. Detailed information was still awaited and a Comprehensive Spending Review would be announced in October. On the capital programme spending cuts would adversely affect school building programmes and other projects including Roundwood Youth Centre and St Raphael’s housing development but to halt the schemes would not be good value for money as premises were deteriorating. Other potential budget pressures were the shortage of primary school places for which building should commence but no funding guarantees. Additionally changes to the funding formula meant the local authority would get less funding.

Taking all into account, the Director summarised that in the medium term, the council was looking at a sizeable potential budget gap even with a 3% council tax rise and decisions were needed on services and how to deliver the corporate strategy. The budget strategy aimed set out how this gap could be addressed a key driver of which was the One Council programme which aimed to deliver significant cost reductions. Other strategies included ensuring strict control of overspends and new commitments, minimising inescapable growth, reviewing all central items, reducing the capital programme and decisions needed to be made on how to proceed in the absence of area based and specific grants. The Director outlined the budget timetable and the opportunity the Panel would have to feed into the budget debate.

Members recognised that a lot of effort would be required to address current financial situation and agreed that lead members should called on to explain expenditure in their service areas. A number of factors contributed to the over spending in adult and social care however it was hoped that controls would be increased by the finance director now reporting directly to the Director of Finance and Corporate Resources and the introduction of the new financial management system. Members also recognised the tension between the need for fundamental changes and dealing with demand led services for vulnerable people. Members also considered the role of staff in identifying cost saving measures and whether there was the potential for savings through departmental amalgamation.

Members then  ...  view the full minutes text for item 3.

This report provides a brief overview of the work of the Budget Panel in 2009/10.  It also aims to assist the members with their discussions about the Budget Panel’s work programme for 2010/11.  A copy of the Budget Panel’s report from 2009/10 is attached for information.

The report from the Director of Policy and Regeneration provided an overview of the work of the Budget Panel in 2009/10.  It also aimed to assist discussions about the Budget Panel’s work programme for 2010/11.

In considering the work programme for the year, members agreed that service directors should be invited to attend meetings to assisting in discussions on the background to the budget in particular on the One Council programme and adult and social care. Members agreed to give advance notice of any specific questions or lines of enquiry so that officers would be able to give full answers. Members also agreed on the need for cross party consensus on lobbying and that it would be useful to receive a short paper on lobbying strategies. On financial forecasting, members noted that detailed information comparing year on year performance was within the remit of the Performance and Finance Select Committee and asked to receive information on performance against the full year budget, highlighting any exceptional data.

RESOLVED:

(i)         that the draft 2010/11 work programme be noted;

(ii)        that the following be discussed at the next meeting:

·         One Council programme

·         adult and social care risks

·         lobbying strategy

·         budget plan - position statement

The next meeting of the Budget Panel is scheduled to take place on 15 September 2010.

It was noted that the next meeting would take place on 15 September 2010.

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