A presentation will be given at the meeting.
Minutes:
Cllr Rishi Shori, Deputy Leader of the Council and Mike Owen, Executive Assistant Director of Resources, gave a presentation detailing the key financial issues facing the Authority and subsequent efficiency savings to be made for Bury Council’s 2015/16 budget.
The following key facts were presented:-
· For 2015/16, £16 million will be cut from budgets. This equates to a loss of £54 m (50%) of the budget in 5 years.
· This means the Council will need to prioritise key services at a time when residents’ needs and expectations are changing and demand for services is increasing.
· In order to do this the Council are exploring alternative ways of delivering services and reviewing organisational structures.
· For 2015/16 the Council have received only 1 year’s funding settlement information from the Government, which has yet to be confirmed.
· The Council’s core funding from Government is likely to be cut by 13% (to be confirmed).
· The Council will also face cuts to a number of grants received from the Government, for example Early Intervention and Education Services grants. This is in addition to pressures from levies from other bodies and uncertainty following the localisation of Business Rates.
The meeting was informed of the following key measures to address the cuts:-
· Alternative Service Delivery Models - £3.420m
· Third Sector - £0.200m
· Income Generations - £2.012m
· Better use of External Funding - £3.376m
· Savings from the way the Council buys things - £1.320m
· Managing Assets - £0.726m
· T & C’s, Restructuring and vacant posts - £3.229m
· Improved Recycling - £0.862m
· Reduction in provision of services - £0.662m
Bury Residents were being informed of the financial issues facing the Authority as part of a consultation process for the 2015/16 budget and were being asked to consider changing expectations about service delivery; working more closely with individuals and communities to deliver services ie. volunteering/self management; a stronger focus on demand reduction such as self care/early intervention/personal responsibility; examining alternative ways of delivering remaining Council services and changing the way residents access services – “digital by default”.
In terms of the next steps, it was reported that from 6 November 2014 to 9 January 2015 the Council will be consulting residents and stakeholders on the package of cuts needed for 2015/16. This will be followed by a review of the consultation feedback which will be fed into the budget setting process for 2015/16. The Council will debate the 2015/16 budget and formally approve a package of cuts. Residents were informed of the various ways they can contact the consultation team and leave comments by 9 January 2015.
The Chair invited questions and comments from those present at the meeting and the following issues were raised:
· What PFIs are there in Bury which the Council pays for? – The Council does not pay for any PFIs directly.
· Will the Council sell off the public land at Higher Lane (Hamilton Park) which was left to the Council 95 years ago? Since then some of the land was sold to a private owner. – There are no plans at this time to sell off the land. The Council is selling Council owned assets in order to promote more housing development.
· In response to the Government’s decision to introduce a ‘Bedroom Tax’ and the Council’s acceptance of the Government’s ongoing cuts to local services. Isn’t it time to petition and lobby more and demonstrate to show our resistance to these cuts? – Bury has not evicted anyone as a result of the bedroom tax. The Council is legally obliged to set a budget and if it does not the Executive Director of Resources will have to or the Government will step in and take over. The budget needs to be consulted on and set in accordance with the views of Bury people.
· Will the Council need to invest in the 2014 Care Act? – Yes approximately £3.4million will be required. Carers are vital to Bury to maintain the high levels of care. The investment now will save the Council money in the longer term.
· Will the Elmhurst facility remain in the control of the local authority or farmed out to 3rd Sector or private sector control? – The Council is looking at different models of control for Elmhurst such as an arm’s length organisation or a social enterprise. The Council wants to develop and build on the quality of the services provided at Elmhurst and make it an attractive and competitive option for those people who may not be in receipt or entitled to benefits and want to buy care services of a high standard.
· Would the introduction of an elected Mayor for Greater Manchester have any impact on the finances of local councils? – No there would be no additional funding available. What is on offer is more control at a local level for investment and finance. There would also be a lot less competition in going to Westminster and trying to lobby Government Ministers for more money. An elected Mayor would be a lot more approachable for AGMA Councils.
It was agreed:
That the information and responses provided be noted and Councillor Shori and Mike Owen be thanked for their presentation.