Agenda item

To consider the following Finance related reports scheduled for Cabinet consideration on 8 February 2023:

•   2023/24 Budget Report

The Corporate and Community O&S Committee is asked to scrutinise and comment on the report and if required make recommendations or observations as appropriate.

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

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The Leader of the Council and Portfolio Holder for Finance and Transformation presented a report, a copy of which had been circulated to each Member and a copy of which appears as Appendix 'B' to these minutes in the Minute Book. In the ensuing discussion the Committee raised a number of issues which were responded to by the Portfolio Holder and Officers including:

·     Concerns were raised regarding proposed cuts in grants to non-profit cultural organisations. The Leader advised that the Council was working to ensure that these saving cuts would not be required.

·     Whether the recommendation at “o”, “agrees capital investment of £5m in seafront infrastructure assets funded by borrowing supported by revisions to beach hut fees”, was needed. This was to follow on from the paper taken to Cabinet in December and identifies the major capital investment outlined at section 123 of the report.

·     Whether the recommendation outlined at ‘q’, “That Cabinet confirms the previously approved budget of £12.5 million for Roeshot Hill and Crescent Road to be repurposed and used under the CNHAS Programme”, was working.

·     The plans for taking forward the budget report through Cabinet and Council and whether there was an additional proposal which may be worked up and presented to Cabinet and/or Council. The Leader advised that there was no proposal to bring forward anything differently to the Cabinet meeting to be voted on. However, there was also an aim to try to improve the position regarding the Council Tax increase. The Leader advised that with the current political balance situation this would need to be opened up to discussion with the other political groups.

·     In response to queries regarding an outline of the legitimate timeframe in terms of the Council deadlines it was confirmed that any member could bring a proposed amendment to the S151 officer by the deadline of three clear working days prior to the Council meeting. It was confirmed that this applied to all.

·     That it was unfair for school funding issues with the dedicated schools grant to be picked up by local authorities.  It was noted that this was within the legislation and the Council did not have any choice on this. The Committee was advised that at some point this would need to be addressed and paid for by someone, be it schools local councils or government.

·     Risks associated with FuturePlaces. Concerns were raised around the situation of full business cases being approved and what the market conditions may be like in terms of being able to secure financing to take these forward. The possibility of the Council having to take a loss on a development as not being able to secure funding on it.  Whether there was an option to reign in some of the work of future places

·     The proposed non-traditional commercialisation, and work with partners and the timeframe set out to be able to do this only providing 3 months.

·     The 130 lines of cuts outlined and how much of this would be achieved through efficiencies and transformation.

·     The proposed cuts in grants to community organisations such as the Citizens Advice Bureau and Community Action Partnership. There were also issues raised concerning communications to the organisations potentially impacted. It was suggested that other proposed budget cuts would lead to more pressure on these voluntary organisations.

·     Further queries were raised regarding whether this was the budget which would be presented to Council. The Committee was advised that it was unless it could be material improved.

·     Queries were raised concerning the proposed Council Tax increase and the impact on the budget and the impact on households. It was noted that the number of households used to calculate this was outlined in the Council Tax base report taken to Cabinet in January, this was set at 144,839 for 2023/24.

·     In response to a query the Section 151 officer advised that he was providing assurance that the report as presented provided a balanced budget. However, it was indicated that there were a number of issues which were highlighted in the report. The Committee sought further assurance that the savings as outlined in the report were deliverable. It was confirmed that there was ongoing work with Cabinet and CMB to ensure that the savings could be achieved.

·     In response to a question it was confirmed that the local council tax support scheme would be continuing.

·     There was concern raised that some of the current savings was due to difficulty in recruitment which in effect meant that the level of service provision was reduced and in the longer term there would be an impact arising due to a need to engage temporary staff. In response it was noted that there would be significantly more money going into adult social care over the years.

·     Concerns were expressed that the budget presented was high risk and that it appeared that the administration were making every effort to put forward changes to the proposed budget. The Leader advised that this was a detailed methodological approach.

·     The Committee questioned whether there were any alternative draft papers available which would be released. It was confirmed that this was not the case. The Section 151 officer advised that the only advice which could be offered was on proposals presented and requested that any alternative proposals be put forward in an appropriate timeframe to allow reasonable consideration.

The Committee recorded its thanks to the Chief Financial Officer and the finance team for the preparation of the budget.

There was a concern raised that the Leader of the Council left the meeting at this point. The Chairman was asked if he could write to the leader to raise concerns with how scrutiny was being treated.