Issue - meetings

Report of the Deputy Leader and Cabinet Member for Finance and Transformation is attached.

Report of the Deputy Leader and Cabinet Member for Finance and Transformation is attached.

The Cabinet Member for Strategic Growth presented a report that sets out key elements of budget proposals.  It makes available the latest financial information that will underpin the budget and MTFS and 

• Proposes a legal budget that demonstrates we are making strides to reduce funding gaps and reliance on reserves
• Enables us to continue to deliver key strategic objectives
• Continues the work to support our continuing financial sustainability 

Councillor Bernstein thanked the Finance Director and Councillor Thorpe for the briefings over the last few months around the budget.  He sought reassurance whether Q3 was likely to increase the need to go into reserves and how challenging it would be to some of the political issues. He questioned whether there would be an argument that if we had chosen to do something about the real living wage, the call on reserves would be significantly less. 

Councillor Thorpe responded that participating in real living wage is the morally right thing to do.  Whilst these are some of the least paid people in our economy, we rely on them heavily for some important work. If we lost these staff wouldn’t be able to look after some of the most vulnerable residents in the Borough.  Councillor Thorpe assured Councillor Bernstein that nothing is off the table, and we will consider all the options. 

Councillor Mike Smith queried whether the efficiencies being looked at were a short term fix.  Is it more realistic that a whole rethink needs to be had about how councils are financed?  

Councillor Thorpe responded that around 70% of the council’s budget goes on statutory services in adult and children’s social care.  Demand is not abating and unlikely to do so at any point in the future. Plan over next few years is to review services to ensure they are more efficient.  There is a case for reforming the system and the government have already reviewed the settlement provided for councils. Government yesterday announced additional funding for SEND for all Local Authorities. 

Councillor Mike Smith queried the increase in income around EV cross pavement charges and what they are?

Councillor Thorpe advised that this was essentially setting a channel in pavements.  It is being trialled in councils across both Manchester and nationally.

Councillor O’Brien confirmed that options are being explored and we will wait to see the outcomes of these trials. 

Councillor Bernstein questioned the overspend in Q2 and whether this was likely to increase or reduce? 

Councillor Thorpe confirmed that pressures aren’t abating. Neil Kissock, Director of Finance confirmed we are not in a position to discuss Q3 at the present time. An update will be provided to the March cabinet meeting. 

Councillor Bernstein observed that there had been lots of debate about housing developments and when we look at council tax income, it is significantly less than all other Local Authorities.  Additional properties will help to increase the income to the council

Councillor Thorpe confirmed this was a good point. There will be challenges in next 2-3 years.  Need  ...  view the full minutes text for item 120

Report and appendices from the Deputy Leader and Cabinet Member for Finance and Transformation are attached.

It was agreed:

·       The Budget update be noted