A presentation will be given at the meeting.
Minutes:
The Leader of the Council, Councillor Connolly and the Chief Executive, Mike Owen gave a presentation setting out the budget consultation for 2016/2017.
It was reported that funding received from central government would continue to reduce and 2016/2017 it was estimated that the Council would have to cut £11.6 million from its budget as core funding was being reduced by 10.75%.
It was anticipated that the Council’s funding would be cut by over 30% in the coming 4 years. This is on top of the £54million lost since 2010 and at a time when residents’ needs are changing, demands are increasing and expectations are high. The Council and its partners would have to work differently to deliver the best outcomes with the resources available.
The Council would need to prioritise services covering its legal obligations and its priorities to look after the vulnerable;
• promote a strong local economy and be a good place to live and invest.
The impact of the reduction is budget was set out:-
• Service changes – can’t rule out service closures and/or a reduced range of services in future years.
• Explore different ways of delivering services and greater use of partnership working.
• Increased waiting times and /or reduced quality of service
• Limits to what the Council can afford to provide and carry out
• A different relationship with residents – understanding what the Council can and can’t do
• Greater use of technology
The Chief Executive set out the cuts that the Council had experienced since 2011 and explained that these added up to £53.561million. The meeting was informed of where the Council spent it's money with the top three areas being Older People – 30p per £1, Children’s Services (non schools) – 24p per £1 and Cleansing, Refuse Collection and Disposal – 13p per £1.
It was explained that the way that the funding was allocated was based on a formula which looked at specific areas such as levels of deprivation and other demographics. This meant that Bury received £331pp compared to the national average of £387pp.
There would also be cuts to a number of grants that the Council receives as well as new concerns such as Apprenticeship Levy, Employers National Insurance and the Living Wage. It was also reported that there was uncertainty around the localisation of business rates and how this would impact on the Council.
Work had been carried out to address the cuts and the following measures had been or would be carried out :-
• Alternative Service Delivery Models
• Grant Optimisation
• Grants to Voluntary Sector
• Income generation
• Better us of buildings and Assets
• Procurement saving
• Service Redesign
• Staff Restructuring
• Use of new technology
The consultation had been launched on 10 December 2015 and was asking residents to consider how savings could be made and suggest new ways of working. The consultation was due to close on 9 February 2016 and all findings would be fed into the budget setting process. The budget was due to be debated at the full Council Meeting on 24 February.
Comments could be sent via e-mail, letter or to a dedicated telephone number.
The Chair invited comments/questions from those present were and the following points were raised:-
• A resident enquired about the costs involved in and the revenue acquired from the Bury in Bloom competition. The Chief Executive reported that the competition does not cost the Council any money as it is funded by sponsors and contributes to the £300 m revenue from retail and tourism in the Borough.
• A resident commented on the need to get more businesses established in Radcliffe Town Centre.
• A resident asked if the reduction to Government funding to the Council were politically motivated. The Leader of the Council explained that the Authority had always disadvantaged in terms of the funding formula it had received from successive Governments over the years. The cuts were now hitting harder than ever before and by 2020, this Government had stated that all grants to Local Authorities would cease and that Council funding would be reliant upon local taxation and business rates.
• Colette Jones asked if Greater Manchester Devolution would help. Both the Leader of the Council and Chief Executive saw Devoution plans as having a positive impact on the Council in terms of having a greater influence on areas devolved to the Authority.
It was agreed:
1. That Councillor Connolly and Mike Owen be thanked for their presentation.
2. That the information provided be noted.