A presentation will be given at the meeting.
Minutes:
Councillor Rishi Shori, Deputy Leader of the Council and Steve Kenyon Interim Director of Resources and Regulation gave a presentation setting out the budget consultation for 2016/2017.
It was explained that funding received from central government would continue to reduce. It was reported that for 2016/2017 it was estimated that the Council will 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 in top of the £54million lost since 2010.
This is at a time when residents’ needs are changing, demands are increasing and expectations are high. The Council and its partners will have to work differently to deliver the best outcomes with the resources available.
The Council will 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
Steve Kenyon set out the cuts that the Council had experienced since 2011 and explained that these added up to £53.561million.
Steve also introduced a slide setting out where the Council spent its 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 explained 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.
Those present were given the opportunity to ask questions and make comments and the following points were raised:-
· Councillor Harris referred to the business rates and asked whether the council would be able to set the rates.
It was explained that businesses would be valued by the Valuation Office Agency and the rate in the pound set nationally.
· Councillor Hankey asked whether the Council could award discounts as an incentive to businesses to keep them in the borough.
It was stated that the Council has introduced a scheme providing discounts for new business in certain parts of the Borough, and also further powers would be available under GM devolution.
· A member of the public referred to Councils receiving penalties for raising Council Tax by more than 2% and asked whether this was still the case.
It was explained that this was still the case and the Council would not be able to raise the Council Tax by more than 2%, but it was reported that a 2% Social Care Precept could be added on top of any rises to help pay for social care needs which were increasing as the population got older.
· A member of the public referred to the living wage and the fact that you have to be aged 25 to receive it. He referred to the need to bring younger people into certain services to get them trained before the living wage kicks in.
Steve explained that the Council do have a very successful apprenticeship scheme which covers all areas of council business from manual to office settings.
· A member of the public asked what the collection rate for Council Tax was.
It was reported that the Council collected 97.5% in year and the rest was recouped later. The Council have very high rates for collection.
It was agreed:
That Councillor Shori and Steve Kenyon be thanked for their attendance at the meeting.