Issue - meetings

Report and appendices of the Cabinet Member for Finance and Transformation.

A report from Councillor Thorpe was submitted ahead of the meeting. However, due to apologies from Councillor Thorpe, the Leader, Councillor Eamon O’Brien, gave a brief overview of the reports.

Councillor Eamon O'Brien and Neil Kissock provided a comprehensive overview of the budget report, emphasizing the significant challenges and efforts involved in setting the budget within the context of global economic pressures and local government constraints. They acknowledged the hard work and dedication of the team in managing cost pressures and demand for services.

Councillor O'Brien began by addressing the initial budget gap, which has been significantly reduced through diligent efforts. However, he noted that a substantial gap remains over the medium-term financial strategy period. Closing this gap will require a thorough review of all budget lines, ensuring value for money, and delivering income and growth targets. He emphasized that this process is neither quick nor easy and will involve looking seriously at how reserves are utilized.

Neil Kissock discussed the strategic use of reserves in detail. He highlighted that reserves should be used as a last resort to cover shortfalls and unexpected challenges. He outlined how reserves have been used up until now and how they are planned to be used over the next few years. This approach is intended to provide confidence that the financial position is sound, although he acknowledged that there are risks associated with relying on reserves.

A significant portion of the report was dedicated to the proposed Council Tax increase of 5%. This increase is deemed necessary to fund vital services such as social care and special education needs, despite the disconnect between what residents pay and the services they receive. Councillor O'Brien advocated for a fairer funding model, highlighting that if the council were funded at the national average, it would have an additional £14 million. He noted that the current government settlement has been beneficial, but there is a need for better funding over the next three years.

Management actions and savings were another critical focus of the report. Councillor O'Brien outlined the importance of management actions and performance indicators in achieving savings. He highlighted the challenges of delivering savings in demand-driven areas such as housing, adult social care, and children's social care. Achieving these savings will require careful management and a focus on performance indicators.

The capital programme was discussed, with significant investments planned in highways and other infrastructure projects. Councillor O'Brien explained the rephrasing of budgets and the importance of ensuring that capital schemes are deliverable. He also addressed the strategic use of Section 106 funds for affordable housing and community projects, emphasizing the importance of utilizing these funds effectively to provide the most benefit to the community.

Councillor Vernon opened up for questions. Councillor Moss asked about the local government financial settlement and whether the final version had any significant differences from what was expected. Councillor O’Brien advised that the final LGFS was published on the 3rd of February. The changes are relatively small and primarily relate to a  ...  view the full minutes text for item 33