Agenda item

Julie Evans, Strategic Director of Resources, outlined a report setting out the latest projections of the Council’s Revenue and Capital Budgets, for the period 2012/2013 to 2015/16. The report detailed the main assumptions driving the Council’s Medium Term Financial Plan (MTFP) and set out the proposed strategy for securing savings requirements, whilst maintaining the focus on protection for front line services wherever possible.

The Committee was requested to note the recommendations that would be considered by Cabinet at its meeting on 12^th December, 2011.  Members noted the recommended growth and savings options identified to date, a number of key assumptions, and key issues.  The Committee noted the impact of savings options on the Council’s workforce, and the detail of previously agreed savings and growth.  The Director discussed further pressures expected in future years as a result of the proposals currently under consultation, including a 10% reduction in Council Tax Benefit funding.  The primary focus of the second phase of the anticipated savings (April 2012) would focus on re-shaping services to deliver the same or greater benefits.  It was noted that the projected overall shortfall across the medium term period covered was £17.734m. Previously agreed savings and the savings proposals presented provided opportunities of £11.909m leaving a current deficit across the period of £5.825m.  Further opportunities would be explored for consideration by members before the end of calendar year. 

The Committee noted that inflation was expected to continue to rise above government expectations and that the remaining substantial funding gap for 2012/13 to 2015/16 would need to be managed. Clearly a significant amount of work would be need to be undertaken to achieve a balanced budget.

Members noted the detail of the Capital Programme and the potential benefits of  a Local Asset Backed Vehicle (LABV). It was noted that the overall HRA capital programme was £25.357m for the period 2012/13 to 2016/17 and the programmed spend for 2011/12 was £7.882m.  The Council’s general reserves had increased as planned to £6.384m and it was highlighted that drawing on reserves to fund any budget gaps would be a last resort.

The Committee raised a number of questions and comments during debate, including the Reprovision of Supported Living. The Committee was assured that the revised service was on target and Jane Wood, Director of Community and Wellbeing discussed the needs of the service users and the future tender process.  It was highlighted that the current service was not competitive on unit price and that half of the current service users were not having their long term needs met in that many who lived in group homes would prefer to live in individual accommodation. A Member queried the position regarding staff who were employed in the Supported Living area and was advised that a small number of staff had expressed an interest in the ‘Planning for the Future’ scheme. The majority of staff would be TUPE’d across to the new service provider.

A Member queried whether the Chancellor’s ‘Autumn Statement’ would result in the imposition of more savings and was advised that certainly the situation would not improve and further challenges lay ahead.

It was noted details of the Capital Spending Programme would be presented to a future Committee meeting.

Resolved - That the report be noted.