Agenda item

(a)  That the current Council’s projected Revenue Budget for 2011/12 to 2014/15 be noted.

(b)   That the assumptions underlying the Medium Term Financial Plan be noted.

*(c)   To confirm the savings items agreed at the PPRG meeting on 13 July 2010 and, request officers, to implement them with immediate effect where possible (with the exception on reduction in foster care fees to existing carers which is subject to appropriate consultation and report back to Cabinet on 9^th November 2010).

(d)   That the Chief Executive as Head of Paid Service and the Strategic Director of Resources as the S 151 Officer in consultation with Commissioners be authorised to approve changes under the workforce planning exercise as described in paragraphs 5.30 to 5.32.

The Cabinet considered a report setting out the latest projections of the council’s revenue and capital budget for the period 2011/12 to 2014/15 following the Policy and Review Group (PPRG) on 13^th July 2010.  The report set out the main assumptions driving the Council’s medium term financial plan and provided further detail concerning service areas contributions to the 2011/12 savings target as agreed as part of the revenue and capital budget process at the full Council meeting in February 2010. 

Members were advised that the council’s PPRG had considered future growth and savings priorities.  At this meeting £4.423m of 2011/12 savings proposals, initially agreed in February 2010 as part of the Council’s ongoing revenue and capital budget planning were reviewed.  At the time of the PPRG meeting several savings amounts attributed to service areas were “to be identified”.  £910K of agreed savings for Childrens Schools and Families as at February 2010 had now been identified and were included in the report for consideration by Members. 

The Cabinet was asked to agree the £4.423m of savings listed at Appendix A to the report on the grounds of urgency as they impacted on the current year’s budget and in order that full year’s savings would be generated from the 1^st April, 2011. 

Members were advised that as part of the Council’s ongoing budget strategy the Council was seeking to minimise the immediate impact on frontline services by focusing contributions to new savings targets for 2011/12 on cross cutting corporate issues and reducing the cost of overheads management and support services.  A further £6.9m savings may be required to balance the revenue budget in 2011/12 based on the latest available information.  The report set out the areas of activity that would be progressed in order to identify savings within support services and members were advised that officers were currently developing options with the intention of presenting the options and making recommendations to Cabinet before the end of the calendar year. 

Members were advised of the workforce planning exercise that had been undertaken in an effort to reduce the need for compulsory redundancies.  All staff had received a letter seeking expressions of interest in a range of alternative future employment options including early retirement, voluntary redundancy and reduced hours.  To maximise savings and facilitate swift change, the Cabinet was asked to agree that the Chief Executive as Head of Paid Service and the Strategic Director of Resources as the S 151 Officer in consultation with CMT and appropriate Commissioners be authorised to approve changes to the Council’s structure under the workforce planning exercise subject to a viable business case to meet the organisational changes required in the light of the constraints going forward. 

The Leader thanked the Director of Resources for the report and emphasised that the Council had secured a balanced budget for 2010/11 and that it was only finding itself in the position of making additional reductions due to the coalition government’s announcements.  In answer to a question the Director of Resources confirmed that  the £6.9m was a realistic figure to be planning for but that there were no guarantees that the Council would not be asked for more.

Commissioners agreed that impact on front line services should be limited insofar as possible and supported the protection of these services by not requiring them to contribute to the new savings target for 2011/12 and focusing the savings requirement on support services.

The Leader made it clear that he intended to deliver the Labour Group’s  manifesto regardless of funding reductions by the government.  The Council would continue to make decisions which, whilst meeting the necessary reductions, protected services that it classed as priority.

A Member present under rule 30 raised a number of detailed questions which were answered.

Members noted that one of the proposed savings for Children Schools and Families involved a reduction in the fees paid to foster carers.  The proposal was to reduce the current £400 allowance to £200.  This proposal had been considered by the Education and Children’s Services Scrutiny Panel at its meeting on 7^th September 2010.  The Panel had recommended that the proposal put forward by representatives of Slough’s foster carers that the allowance paid for the first looked after child for each carer be set at £300 (a reduction of £100 from the current allowance) be approved and that all other allowances paid to foster carers should remain at the current rate.

A letter from the Chief Executive of the Fostering Network was tabled at the meeting. 

Two representatives were invited to address the Cabinet on behalf of Slough’s Foster Carers (Eugene Travers and Zareen Keeton).  The meeting was asked to consider the fees in the light of the difficult and 24/7 nature of the role of a Foster Carer.  Reference was made to the Foster Care Scheme that was adopted in 2005 when the allowances were increased and the requirement that foster carers resign from jobs that they had outside the home was introduced.  It was argued that the proposed reduction in allowances was unreasonable under the Employment Rights Act and Children’s Act and foster carers asked whether adequate consultation had been undertaken.  Existing foster carers were concerned that children would be put at risk if the proposed reduction in allowances was implemented.

Commissioners considered the arguments that had been put forward and the recommendation of the Scrutiny Panel that the fee be reduced to £300.  Whilst noting and understanding the points made by existing Foster Carers Members were concerned that the proposal put forward would not realise the necessary savings and would still leave the Council paying a foster carer allowance in excess of neighbouring authorities.  It was noted that even with the proposed reduction to £200 the payment levels remained above other local authorities in the area.

In answer to a question Members were advised that the Foster Carers were not formally engaged under an employment contract.  The fee paid was an allowance and the provisions of the Employment Rights Act did not therefore apply.

Members acknowledged that the increased allowance and restriction on work outside the home had been introduced in 2005 to increase the standard of care and reduce reliance on Independent Fostering Agencies.  The Director advised that there had been a significant increase in the number of foster carers in 2006 however since then there had been no further marked increase.  Members argued that it was questionable whether the policy had worked.

The Director confirmed that some potential foster carers had come forward on the proposed new reduced allowance.  However, whilst the authority was keen to recruit new foster carers it wanted to retain existing foster carers as continuity was important fro the children involved.

The Director explained how foster care allowances were taxed and, in answer to a question, confirmed that the authority had consulted with foster carers however children and parents had not been consulted.

Commissioners considered that the reduced allowance was fair when compared with neighbouring authorities.  The concern over the drop in family income that would result was acknowledged and members considered that this could be mitigated by the removal of the restriction on taking jobs outside the home.  Members asked how quickly this restriction could be freed up and the Director advised that new foster care contracts would need to be issued in any event setting out the authority’s expectations and the restriction could be removed very quickly.

Members present under rule 30 raised a number of concerns including whether the Council would lose foster carers as a result of reducing the allowance with more reliance on more costly external placements and the fact that the contribution that foster carers made could not be underestimated.

The Leader summed up the debate emphasising that it was essential that the savings were achieved, there were no easy decisions to be taken and every service in the Council would need to make a reduction.  This was the start of a process which the authority intended to manage in a rational and targeted way.  The authority could not continue with a scheme that provided allowances that were more generous than neighbouring authorities.

Members discussed whether there needed to be any further consultation undertaken and the Director confirmed that any delay in implementing the decision would have an impact on savings.  It was proposed and agreed that the allowance to new Foster Carers be reduced to £200 with immediate effect.  The current restriction on outside work would be lifted as soon as possible and that an “in principle decision” be taken to reduce the allowance to existing Foster Carers to £200 subject to appropriate consultation and a report back to the Cabinet on 9^th November 2010 with a suggested implementation date.

Resolved -

(a)  That the current Council’s projected Revenue Budget for 2011/12 to 2014/15 be noted.

(b)   That the assumptions underlying the Medium Term Financial Plan be noted.

(c)   On the grounds of urgency, that  the savings items agreed at the PPRG meeting on 13 July 2010 be confirmed and that they be implemented with immediate effect where possible (with the exception of reduction in foster care fees to existing carers which is subject to appropriate consultation and report back to Cabinet on 9^th November 2010 as detailed in above minute).

(d)  That the Chief Executive as Head of Paid Service and the Strategic Director of Resources as the S 151 Officer in consultation with Commissioners be authorised to approve changes under the workforce planning exercise as described in the report.