A presentation providing information on efficiency savings to be made for Bury Council’s 2015/2016 budget will be given at the meeting.
Minutes:
Councillor Mike Connolly, Leader of the Council and Mike Owen, Director of Resources and Regulation gave a presentation detailing the key financial issues facing the Authority and subsequent draft budget cuts programme 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 has 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% in 2015/2016(to be confirmed).
· The Council will also face cuts to a number of other grants received from the Government, for example Early Intervention and Education Services grants. This is in addition to pressures from levies from other bodies, increasing demand and uncertainty following the localisation of Business Rates.
The meeting was informed of the following key measures to address the cuts:-
Ø Alternative Service Delivery Models - £3.420m
Ø Third Sector - £0.200m
Ø Income Generations - £2.012m
Ø Better use of External Funding - £3.376m
Ø Savings from the way the Council buys things - £1.320m
Ø Managing Assets - £0.726m
Ø T & C’s, Restructuring and vacant posts - £3.229m
Ø Improved Recycling - £0.862m
Ø 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 their 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 on 25 February 2015. Residents were informed of the various ways they can contact the consultation team and leave comments by 9 January 2015.
The Chair invited questions/comments from the audience:-
Ø A member of the public explained that she had looked at the proposals on the Council website but they had seemed very vague with no real detail set out. The information relating to adult care services was not set out and she felt that it wasn't very informative.
Councillor Connolly explained that the decision had been made to go forward with an alternative service delivery model for Adult Care Services and detailed information had been provided which was currently being consulted on.
Ø Mr Booth referred to the sculpture centre that had been installed in Bury Central Library and asked how this could be justified as half of the library had been removed to allow for its installation.
Councillor Connolly explained that the Council had seen a massive reduction in the grant provided to support library services which had meant that the provision in Bury Central Library would have been reduced anyway which would have left the space empty. The successful application for the Lottery Grant to provide the sculpture centre had meant that the space could be utilised in a way which would attract tourism to the town.
Ø Mr Booth asked if public viewing figures were available.
Councillor Connolly stated that he would make sure that Mr Booth received this information.
Ø Mr Green referred to the savings around procurement that were set out in the presentation and asked how these would be achieved.
Mike Owen explained that all contracts relating to procurement across the Council were being revisited and renegotiated and it was anticipated that this would realise the figures stated. Mike explained that the way in the Council purchased goods and services had changed significantly which had already led to significant savings being made and this would continue.
Ø Councillor Bevan referred to the income generation mentioned and asked for clarification that parking charges would not be introduced in Ramsbottom.
Councillor Connolly confirmed that the Council would not be introducing parking charges in Ramsbottom.
Ø Councillor Bevan referred to fact that the Council now received 50% of business rates collected across the borough and asked what the Council were doing to attract new businesses into the town.
Mike Owen explained incentives were being considered to offer to new businesses coming into the town as well as support for businesses looking for grants and funding.
Councillor Connolly explained that one of the Council's key priorities was a stronger local economy and this was something that they were working hard towards achieving.
Ø Mr Waddell asked what the term ‘Income Generation’ meant.
Mike explained that the Council would be looking to generate more income over and above what they generated currently.
Ø Dr Binns referred to the fact that the Council were looking to deliver services more smartly by utilising web technology. Dr Binns asked the Council to recognise that not all areas of the borough were able to receive a broadband connection.
Councillor Connolly reported that this issue was known and the Council were working to support those areas that Dr Binns was referring to.
Ø Councillor Gunther asked how much of the Council reserves would be used to help achieve the required savings
Councillor Connolly explained that the 'Golden Rules' relating to the spending of Council reserves would be followed to the letter and the reserves would not be used in this way.
Ø Councillor Daly asked whether the Council had an estimate for the number of compulsory redundancy which may be necessary.
Councillor Connolly explained that no such figures were available; the Council were hoping to avoid compulsory redundancies through a programme of voluntary redundancies, flexible retirement and redeployment.
Ø Mr Green asked whether the Council would be willing to cut the number of higher paid senior officer posts as part of cuts.
It was explained that the number of Directorships had been considered and reduced and the Council had already streamlined the departments and reduced the number of middle management across all directorships.
Ø A member of the public referred to the dividend received from Manchester airport and asked whether this had been included in the savings proposals.
This was confirmed to be the case.
Ø A member of the public asked whether the demolition of Castle Leisure Centre was still going to happen and if so, when?
It was explained that the site of the leisure centre as well as the adjoining site of the old Police Station were both owned by the Council and earmarked for supermarket development which would be at no cost to the Council. However the current financial climate means that supermarkets were not in the process of building new stores and so the plan would be on hold until this situation changed.
The Chair concluded the debate and asked that all those present read the proposals and to get involved in the consultation process.
It was agreed:
That the information provided be noted and Councillor Connolly and Mike Owen be thanked for their contribution to the meeting.