Agenda item

The Committee considered four reports related to approval of the Revenue Budget and setting of the Council Tax for 2014/15 as follows:

• Revenue budget 2014/15
• Medium term financial strategy (MTFS) 2014-18
• Treasury management strategy
• Capital strategy: 2014-19

Joseph Holmes, Assistant Director Finance and Audit, introduced the reports by way of an overview, containing graphs and pie charts, of the financial background against which the Cabinet and Council would be taking decisions.  The Leader was in attendance to answer questions.

The Committee noted the income sources available to the Council to meet the budget, primarily retained business rates (24%), revenue support grant (29%) and council tax (39%).  As a result of cost pressures (of which 39% arose from Government funding reductions) a savings target had been set to be driven by a substantial programme of business efficiency.  The MTFS set out the current and future estimated financial position, highlighting the steady reduction in Government spending on Local Government as a whole (25% from 2010 to 2015) and set to continue thereafter.  Breaking down the proposed savings by service showed that Adult Social Care and Corporate spending would deliver a significant proportion.  Reduced revenue support grant  resulted in a decreasing total income stream each year through to 2017/18, with the total budget down to an estimated £97.6m in 2017/18 (compared to £114.25m in the current year).  The Adult Social Care and Children and Families budget are and would continue to be the largest spends for the Council, and they would form a larger proportion of a smaller overall pot year by year.  Whilst capital spending in excess of £50m was estimated for the current and 2014/15 years, this would reduce substantially thereafter, the majority being allocated to Education and HRA spending.  The Treasury Management Strategy set out how the Council would manage its £285m of treasury risk comprising debt of £182.4m and investments of £103m.  A chart showed where the Council’s investments were placed and referred to the cash and time limits for placing investments in various organisations, with a view to obtaining the best returns for the Council.

In scrutinising the budget and associated reports, the Committee received answers to questions and additional information on the following:

• An explanation was given of the strategy for dealing with the budget pressure from Children’s Social Care, particularly the rising cost of looked after children, and steps taken to recruit, train and retain more qualified social workers.
• Some joint work with Surrey County Council was being carried out around new initiatives to attract staff such as social workers through use of social media and more effective ways of marketing Slough.
• For all the savings proposals for 2014/15 where it was required, an equalities impact assessment was being carried out.
• Although the savings to be made in adult social care represented a significant cash sum, they were not huge in percentage terms, and through benchmarking to check how well money was being spent, were being achieved through the redesign of services to improve outcomes for clients at less cost and by reducing contract costs on services commissioned by the Council.
• It was hoped to grow the amount of retained business rate again in the future (the current level having been adversely affected by some demolitions), although it was noted that for every additional £1 of business rate collected, the Council retained approximately 30p.
• The Leader explained that the recommendation for a 0% Council tax rise had been framed taking into account affordability for taxpayers, the wish to have certainty and to avoid any risk of capping by the Government.
• The proposed increase in Council house rents amounting to an average of 5% was in line with current government guidelines.
• The Council’s investment strategy had been successful, outperforming returns from Government gilts, and provided for increased lending to other local authorities (on a longer term) to maximise returns.
• The schemes included in the SRP element of the capital programme where no expenditure was specified would be delivered through the regeneration partnership (which would bear the capital spend) whilst a capital receipt would accrue to the Council in due course.

Having considered the reports and the recommendations contained therein, the Committee concluded that the draft revenue budget was balanced and well constructed, with sound and achievable proposals on savings and efficiencies.

Resolved -  That the reports be noted accordingly.