Issue - meetings

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Gold, Cabinet Member for Finance and Communities provided an overview of Bury Council Medium Term Financial Strategy which runs to 2025/26 and will be refreshed as part of the annual budget setting process in February 2023. A mid-year review of the Strategy has been undertaken as a matter of good practice and in the context of the unprecedented inflationary and demand pressures being experienced so far this year. The review has indicated a provisional budget deficit of £29.204m in 2023/24; a further gap of £3.475m in 2024/25 and a further £5.866m in 2025/26.

A member challenged the savings that are made and then not delivered. In response Councillor Gold concluded transformation is being looked at and a paper is being taken to December Cabinet. Sam Evans, Section 151 Officer added that capitalisation of staff salaries is being done to mitigate overspends.

Discussions took place regarding unpaid leave for members of staff, and how buying leave and unpaid leave is being promoted which in turn is supporting savings. Members asked how this is managed with service delivery. In response Sam Evans did advise there is a balance especially around front-line service delivery, and it is not mandatory.

Further discussions took place regarding increases in charges that are set out in Appendix 3. In response Councillor Gold did advise the proposed charges are going through consultation and necessary to keep services functioning and have been benchmarked with other local authorities.

Councillor Vernon thanked Councillor Gold and Sam Evans for their attendance.

Report of the Cabinet Member for Finance and Communities is attached.

Councillor Richard Gold, Cabinet Member for Finance and Communities, presented the report which presented the mid-year review of the Medium Term Financial Strategy (MTFS) which ran to 2025/26. This had been undertaken as a matter of good practice and in the context of the unprecedented inflationary and demand pressures being experienced so far this year.

The review indicated a provisional budget deficit of £29.204m in 2023/24; a further gap of £3.475m in 2024/25 and a further £5.866m in 2025/26, and the report set out a range of options to address this deficit as a basis for consultation with affected stakeholders. Members noted this was a challenging picture but was one being faced by Councils across the country. Cross-party concerns were being raised nationally, and the response from the Government through the settlement figures expected in December would be crucial.

Members discussed the information and, in response to Members’ questions, the following was noted:

·         Sufficient strategic capacity was important in ensuring the Council could run efficiently, but despite proposed reductions Chief Officer pay would remain competitive and was only one of Bury’s attractions as an employer.

·         Rationalisation of buildings was a complex project and was progressing more slowly than expected. The balancing act of where to accommodate people and services was complicated, and it was noted that sale prices would also be affected by current utility costs and inflation.

·         Savings being made to strategic finance had been realised through the careful line-by-line review of budgets. Some savings were only achievable now that skills and capacity had been developed in a number of teams, and also through the maturation of longer term workplans and strategies.

·         Transformational changes were progressing, and the adaptability of staff demonstrated the relevance of internal transformation still to come.

·         It was agreed that fly tipping and was a problem but increases to commercial waste management costs were rising to meet the rise in operating costs from inflation rather than trying to secure a profit.

·         The Council worked closely with community groups in the borough, and the Let’s strategy supported more liaison with the community as they were often better placed to offer help and support to residents. This was not an attempt for local groups to pick up Council work, but a different and more efficient way of working that had been part of long-term plans since before Covid.

·         The Council was exploring options regarding the service offer from the art gallery and costs would be considered as part of this, however outcomes were currently unknown as the options appraisal was still ongoing.

·         With regards to management structures, proposals agreed with the budget papers last year agreed to move to a flatter structure, with reductions in the number of managers needed and the number of levels of management, and this was progressing.

·         It was noted that staffing impacts were across the Council, not just frontline staff, and would be subject to full consultative processes.

Decision:

Cabinet:

1.    Approved the updated medium term financial strategy and the assumptions regarding  ...  view the full minutes text for item 69