Agenda item

To scrutinise the budget related report scheduled for Cabinet consideration on 28 September 2022.

The Committee is asked to scrutinise and comment on the report (to follow) and if required to make recommendations or observations as appropriate.

Cabinet members invited to attend for this item: Councillor Drew Mellor, Leader of the Council and Portfolio Holder for Finance and Transformation.

The Leader of the Council presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'A' to these Minutes in the Minute Book.

The Committee were asked to scrutinise and comment on the report and if required to make recommendations or observations as appropriate.

In response to a question regarding how this year’s budget gap compared with two years ago, the Leader of the Council confirmed that the MTFP on 1 October 2020 showed a £50m gap, of which about £30m was in relation to Covid, for which the Council received assistance from the Government.    Last year the gap was about £10m. 

It was further confirmed that for the current year, 2022/23, there would be £20m coming from Central Government, which would result in the Council having a £4.2m surplus.  It was advised that a report would be going to Cabinet in October, that will have the formal response regarding the balancing of the budget. 

The Committee were advised that work on an asset register was ongoing and in response to a question regarding what assets were intended to be closed, it was explained that any asset disposal would not have any impact on capital disposal.  More in-depth options would be available during the next couple of weeks.

The Committee was advised that although the Winter Gardens project had been removed from the Capital Programme, the Council was still committed to delivering a regeneration scheme and the Future Places Team had been asked to draw up further options.  Planned expenditure had, therefore, been taken out of the current Capital Programme, but would be reintroduced when any plans were agreed, to reflect the proposed works. 

Concern was raised regarding issues of staffing and in particular Agency staff and Business Support posts, as it had been advised that no new costs were to be incurred.  It was asked what impact this would have on existing staff and services.  It was acknowledged that whilst the Council had significant numbers of agency staff, this was being reviewed, with plans to move these members of staff onto permanent contracts.  However, there would still be a number of agency staff necessary for some posts.  As part of the transformation programme, there was an aim to reduce the requirement for and number of Business Support posts. 

The Chief Executive confirmed that, in relation to presenting a balanced budget, the Council was moving in the right direction, but final Cabinet and Council decisions would be needed to finalise this.

In response to a question regarding the selling of any Council-owned assets and how much money needed to be raised by selling assets and over what period, it was advised that this came under the capital receipts workstream, and further reports would be presented as work progressed.  £76m needed to be collected by capital budget or the sale of assets.

The Leader advised that they remained unapologetic that they maintained their ambition to not sell any Council-owned assets.  The shortfall in the High Needs block was a national problem, which had been discussed with Ministers and a national solution was expected but not guaranteed.  The Leader continued that they did not think that the Council was in a particularly dire position, but that they had confidence that the Government would deliver support, so the Council was in a better position than last year.    The Chief Executive advised that the Government’s High Needs scheme had never been sufficient, as there had been an increase in demand and the funding did not meet the needs.  This was not linked to the Council budget position and should not be funded by council tax.

The Leader of the Council confirmed that the Council could generate financial receipts from capital projects and that there would be some commerciality.  The Council needed to fully recover costs and being commercial was the right thing to do. 

Whilst there was support for the proposed new apprenticeship scheme, there was concern from the Committee that apprentices could be used to fill vacancies.  The Leader advised that the Council was trying to significantly ‘grow our own’, filling vacancies by apprenticeships.  It was judged as an investment in the future and providing a more resilient workforce.

It was confirmed that the Council was conducting a review of car park charges. 

The Committee was advised that a date for this Committee to receive a further report in October had not been confirmed.   Although there was a date in the calendar, it would be changed.

In response to a question regarding what Cabinet was minded to do about charges for Community events, it was advised that there were ambitions to upskill the community, allowing the Council to step back. 

In response to a question regarding what consultation would be conducted before certain services would be reduced/cut., it was advised that an exercise would be carried out, to see if any services could be reappointed across the authority.  It was considered to be right and proper to engage between October 2022 to February 2023, when the Council has to deliver the budget.