Agenda item - In-Year Savings 2010/11

Report of the Director of Finance & Resources (to be circulated).

10.1         The Mayor noted that the report had been circulated as a late item as some of the key information from the Department of Culture, Media & Sport had not been made available until the 6^th July.

10.2         Councillor Mears introduced the report, which detailed the 2010/11 in-year grant reductions announced by the government and which would be considered by the Cabinet at its meeting on the 22^nd July 2010.  She noted that there were two amendments and stated that she was happy to accept both, although there was a need to acknowledge the tight timescales that were involved in the dealing with the situation.

10.3         Councillor Young formerly seconded the report’s recommendations.

10.4         Councillor Elgood proposed an amendment, seconded by Councillor Watkins to add an additional recommendation to the report as follows:

            “To request the Overview & Scrutiny Commission and relevant Scrutiny Committees undertake a full scrutiny examination of the in-year reductions to fully assess their impact.”

10.5         Councillor Elgood stated that he felt the report should have been considered through the scrutiny process and he hoped that this would now happen.  He believed that it would have been helpful to have had the information of the options being considered as there would be an opportunity to support possible reductions as well as oppose others.  He was disappointed that the detail was not available and that there had been no cross-party discussions to date.

10.6         Councillor Mitchell moved an amendment, seconded by Councillor Hamilton to add a further two recommendations to the report as follows:

            “That in recognition of the huge investment that the Third Sector brings to city service delivery to residents in terms of funding, in-kind support and volunteer time, it be noted that service provision stands to be more adversely affected by the withdrawal of grants and contracts; and

            That in regard to 2.2. above, any change in service as a result of these in-year cuts must be  subject to a rigorous impact assessment prior to any decisions being made.  This assessment to involve the organisations providing the services that are best placed to demonstrate the impact of their work and service users in the wider community who will have strong views about the support that they need and want.”

10.7         Councillor Mitchell stated that she was disappointed that the report before council was not the one that she had expected.  It was almost the same as the one presented to the previous Cabinet meeting and did not outline the proposals in relation to the reductions that would need to be made.  She also noted that the report which would have the information and which was due to be considered by the Cabinet on the 22^nd July was not yet available.  She stated that the Labour amendment had been submitted on behalf of the Community & Voluntary Sector Forum, which was worried about the possibility of cuts and the lack of information that was available.  It meant that any potential impact on the services provided could not be anticipated and projects were being put at risk.

10.8         A general debate on the issue was then held and concerns were raised in regard to the funding streams for the Community & Voluntary Sector Forum, educational schemes such as Tom the Dog, an after-school club in Whitehawk, the Youth Capital Fund, the reduction of grants by 50% for projects, the loss of funding for community projects such as a skateboard park in Hollingdean, private sector companies such as a local printing form which would have to lose staff as it would lose work from the council.

10.9         Councillor Watkins drew attention to the proposed amendment from the Liberal Democrat Group and the need for a full scrutiny examination of the proposals to assess the impact on services.  He suggested that in view of the tight time scale, there would be a need to arrange meetings outside of the current schedule of meetings and hoped this would be accommodated.

10.10    Councillor Mears noted the various comments and stated that there was no intention to cut the Youth Capital Fund or to reduce grants by 50%; but decisions would need to be taken if the affect of the in-year reductions were to be addressed.

10.11    The Mayor noted that both amendments had been accepted and therefore moved that the report and the recommendations as amended by approved.

10.12    RESOLVED:

(1)         That the details of the 2010/11 in-year grants reductions announced by the government as set out in paragraphs 3.1 to 3.5 and appendices 1 to 3 of the report be noted;

(2)         That the Overview & Scrutiny Commission and relevant Scrutiny Committees be requested to undertake a full scrutiny examination of the in-year reductions to fully assess their impact;

(3)         That in recognition of the huge investment that the Third Sector brings to city service delivery to residents in terms of funding, in-kind support and volunteer time, it be noted that service provision stands to be more adversely affected by the withdrawal of grants and contracts; and

(4)         That in regard to (3) above, any change in service as a result of these in-year cuts must be subject to a rigorous impact assessment prior to any decisions being made.  This assessment to involve the organisations providing the services that are best placed to demonstrate the impact of their work and service users in the wider community who will have strong views about the support that they need and want.