Agenda item

Full Council will be holding its first reading debate on the 2011/12 budget

at its meeting on Monday 22 November. This report sets out the financial

issues that will form the background of that debate.

The report is to follow.

The Leader of the Council and the Lead Member for Finance and Resources will attend the meeting to answer questions from Members.

Clive Heaphy introduced this item and drew Members’ attention to the report circulated in the supplementary agenda.  He advised that because of the economic circumstances, it was much more difficult to make forecasts and therefore the report would still be subject to a number of revisions before and after the First Reading Debate at the Council meeting on 22 November.  The final details of the council’s funding would not be known until the Local Government Settlement announcement in December. 

Councillor John added that this was the most challenging budget that the council had faced and circumstances would continue to be difficult for the years ahead.  She advised that the council could not afford to deliver some services in the same ways it did now.  There had already been a transformation programme in respect of Adult Social Care and it was expected that this would deliver some savings.  Members heard that it was not anticipated that there would be any growth items for the report to go to Council on 22 November and a number of important details would not be known until after the Local Government Settlement.  However, protection of frontline services was a priority and all service areas were being considered in respect of making savings. 

With the agreement of the Chair, Robert Dunwell addressed the committee.  Robert Dunwell enquired what strategy was in place in respect of the council considering tendering services to other providers where they could do better, could any service be tendered for and would the council take a flexible approach in respect of this.

With the agreement of the Chair, Councillor S Choudhary addressed the committee.  Councillor S Choudhary suggested that libraries could be improved by providing i books to users.

Members then discussed this item.  Councillor Long asked if details of spending for each item would be provided as in previous first reading debate reports.  Councillor Van Kalwala enquired how the council intended to build upon its reserves and how had the inescapable growth figures been calculated.  Councillor A Choudry asked whether unexpected and exceptional events and circumstances would be factored in to the report to go to the Council meeting on 22 November.  He stressed the need to inform the community of the need for the council to make tough decisions and that some services would need to be changed in the way that they were delivered or even stopped altogether.

The Chair sought views on the possibility of achieving the increased savings target from the One Council Programme.  He asked if there was a vision of how the council would operate two years from now and commented that difficult situations often presented opportunities too.  He expressed concern that the council may become too remote from residents if there was an over-reliance on communicating through technology.  The Chair also sought assurances that decisions taken did not disadvantage those living in the less privileged parts of the borough.

In reply to the issues raised, Clive Heaphy advised that he was confident that the One Council Programme could achieve the increased savings targets that had been projected.  Members noted that budget details for individual items would not be provided until after the Local Government Settlement announcement in December.  In respect of increasing reserves, Clive Heaphy advised that this was desirable because the council was now at higher risk financially and there needed to be careful consideration in respect of methodology of how the balance could be added to.  The possibility of making greater savings to build reserves was an issue that needed to be debated.  It was noted that the Government grant available in respect of freezing Council Tax was only temporary and consideration needed to be given as to whether this was the best option.  Clive Heaphy advised that the inescapable growth figures were devised based on historical knowledge and 5% inflation had been built in. 

Councillor Butt (Deputy Leader of the Council and Lead Member for Resources) advised that the council needed to be leaner and better prepared for the future in two years time and needed to consider how services were provided, how technology could be utilised and to take full advantages afforded by the move to the civic centre.  Service areas were already working together and using technology to speed up processing times.

Councillor John stressed the need for some services to be delivered in a different way, including the need to transform library services and residents would be consulted as to what they wanted from this service.  She commented that technology increased residents’ access to council services and demand for on-line based services was increasing.  However, she acknowledged that some services, such as those in Adult and Children’s Social Care, face to face contact was still a necessary form of contact and every effort needed to be made to ensure such services were as accessible as possible.  Councillor John commented that where expertise had been demonstrated, an alternative provider could be considered and there were already a number of cross-council collaborations.  The example of Brent’s registry service being provided to the London Borough of Barnet also meant that the council could offer services to other organisations where it had proven expertise.  Councillor John acknowledged that there was a need to address inequalities in the Brent and every effort was being made to close this gap.