Agenda item - Budget Planning & Resource Update - Draft Proposals 2017/18 - 2019/20

Report of the Executive Director for Finance & Resources (copy attached).

That the Committee:

1)    Notes the updated forecasts for resources and expenditure and an estimated budget gap for 2017/18 based on a 1.99% Council Tax increase and an additional 2% Adult Social Care precept.

2)    Note the Budget Strategy and approach to meeting the financial challenge next year and over the life of this parliament.

3)    Notes the refreshed 4 year ISFPs including detailed draft proposals for savings in 2017/18 towards meeting the identified budget gap.

4)    Directs that all of the draft savings proposals identified at Appendix  2 be subject to further consultation and engagement, meeting statutory consultation requirements where required.

5)    Notes the update on the HRA budget set out in paragraphs 3.40 to 3.43.

6)    Notes the Capital Investment Programme update set out in paragraphs 3.44 to 3.48.

7)    Receive and note the Equality Impact Assessments undertaken in relation to the draft budget proposals.

79.1         The Committee considered a report of the Executive Director for Finance & Resources in relation to Budget Planning & Resource Update - Draft Proposals 2017/18 - 2019/20. The report provided draft proposals to meet the £24.3 million savings requirement in 2017/18 along with outline proposals for 2018/19 and 2019/20. As before, proposals included invest-to-save requirements in order to achieve planned savings; these would be supported by one-off resources subject to the approval of business cases. It was noted that the draft proposals did not meet the budget gap in full and there is a shortfall of £3.2 million for which further options are being considered as set out in paragraph 3.24.

79.2         In response to Councillor Wealls it was explained there was a robust methodology for calculating demand for children’s and adults’ services; however, the nature of these service left them open to significant spikes in costs, especially in relation to children’s care proceedings. In relation to adults’ services it was highlighted that demand and inflation was becoming difficult for all local authorities to manage nationally.

79.3         Councillor Sykes noted his concern with the scale of the savings proposed in the report; he also highlighted the increased use of language in relation to ‘demand reduction’, but queried where this demand would go.

79.4         Councillor Hamilton noted that the proposals were still very much a work in progress, and highlighted the Council was still projected a £3.5M overspend at year end. He went on to highlight to high cost of the voluntary redundancy scheme, and the scale of the pressure on the Council’s budget.

79.5         Councillor Janio asked the Administration to work with both opposition parties in an open dialogue during the budget setting process.

79.6         The Chair then put the recommendations to the vote; these were carried with 4 in support and 6 abstentions.

79.7      RESOLVED:

1)        Notes the updated forecasts for resources and expenditure and an estimated budget gap for 2017/18 based on a 1.99% Council Tax increase and an additional 2% Adult Social Care precept.

2)        Note the Budget Strategy and approach to meeting the financial challenge next year and over the life of this parliament.

3)        Notes the refreshed 4 year ISFPs including detailed draft proposals for savings in 2017/18 towards meeting the identified budget gap.

4)        Directs that all of the draft savings proposals identified at Appendix  2 be subject to further consultation and engagement, meeting statutory consultation requirements where required.

5)        Notes the update on the HRA budget set out in paragraphs 3.40 to 3.43.

6)        Notes the Capital Investment Programme update set out in paragraphs 3.44 to 3.48.

7)        Receive and note the Equality Impact Assessments undertaken in relation to the draft budget proposals.