Agenda item

[To consider a report on the draft budget and Medium Term Financial Strategy 2018-2019 to 2019-2020]

Report will be sent to follow

The Finance Business Partner (Place) presented a report on the Draft Budget and Medium Term Financial Strategy 2018-2019 to 2019-2020.  The purpose of the report was to seek the Panel’s feedback on the Draft Budget 2018-2019, that had been approved by Cabinet to proceed to formal consultation and scrutiny stages.  The Panel’s feedback was also sought on the approach to budget consultation and key budget reduction proposals that were built into the Council’s Medium Term Financial Strategy. There was currently no new savings proposed in the service area for 2018-2019. 

The Service Director for City Economy stated there were two parts to the financial strategy in City Economy.  The first being how the service area used the mainline budget given by the Council, which was relatively small compared to some places and the second, how it secured external funding which formed a large proportion of the overall funding.  The inclusive growth work carried out by the service area created the base for the finance the Council held through the business rates and tax.  The City Economy Service had already achieved budget reductions.  The Council had been very successful in achieving external resources to fund business support and enterprise.  The small team had doubled as a consequence.   The finance for this had come principally from Central Government and European Structural Funds.  The Council had applied for an extension bid to secure more finance for the team. The Council was positioning itself to being a leader in the Black Country in business support and enterprise.  When the industrial strategy funds came through the Council would be well placed to continue work in this area, which was the foundation for having a good tax base.

The Service Director for City Economy stated that the City Development Team worked in a similar way and it was a small team undertaking capital projects.  They were mainly trying to secure the private sector to complete these projects rather than the Council directly.  They did however do a number of projects where there was a gap between them being viable for the private sector.  An essential part of their work was to secure funding from the LEP (Local Enterprise Partnership), the West Midlands Combined Authority and other sources.  The Council’s investment into Wolves@Work and the Partnership the Council had with the DWP (Department for Work and Pensions) was beginning to pay dividends in the number of people gaining employment and the support that was offered them in the initial stages of employment.   

The Service Director for City Economy stated that in the Cultural Visitor Economy, the service area was proud that they had secured Arts Council funding for the next four years.  Wolverhampton Council was one of the very few places to get an increase in their funding.  The Arts Council had been particularly impressed with the Literature Festival which the Council had started.  Capital and revenue funding had been secured from the Arts Council.  The overall strategy was about ensuring that everything the Council undertook delivered as many benefits as possible, rather than approaching projects as silos.  The strategy was also about promotion, facilitation and planning for the City which was important to securing investment in the longer term.  In conclusion the strategy focused on bringing resources into the City when the Council was having to reduce its own. 

A Panel Member stated that there was an impressive story to tell in Wolverhampton.  The Council knew their strengths and weaknesses and had been able to continue to develop the City.  One the Council’s great strengths had been its ability to keep its cultural venues open compared to some neighbouring authorities which had closed theirs. The Council put great value in their cultural assets.   Dudley had shut their Museum, Walsall now had concerns over their museum and art gallery and had shut libraries.  The majority of Wolverhampton Libraries had remained open in recent times, which was a credit to the authority.  He desired further development at Northycote Farm to raise income and help balance the books. They requested a meeting with the Service Director for City Economy to discuss the issue. 

A Panel Member stated that he couldn’t find any major flaws in the Financial Strategy going forward.  They did however believe that the City had not reached its peak in the Visitor Economy and so continuous development was needed but also taking into account the challenges.  People were staying overnight on boats in Wednesfield which were contributing to the local economy.   Due to the slow nature of boats people were also staying in Wolverhampton.  The nature reserve being developed would be the longest local linear reserve in the country, which would attract many visitors.  As it was flat it would be attractive to people of all ages and those with mobility issues.  The Nature Reserve was something which could further enhance the Visitor Economy and development should be encouraged.  Officers from the Arts Council had visited Wednesfield in August to assess how £2,500 of Black Country Creative Arts funding was being spent. They had been impressed with what they had seen.

A Panel Member stated whilst there was clearly challenges ahead, the strategy was correct.  Promotion was important to increase the footfall such as attracting people from the other side of the city to visit the canal in Wednesfield.  She referred to the pink book which had been an excellent promotion tool.  The Council needed to praise itself and the area of Wolverhampton more.  The City had been creative in how they could use its venues and she hoped this would continue. 

A Panel Member stated that the strategy was about making the most of Council assets and managing the Council’s liabilities.  Monitoring and review was important to assess how well the Council was doing in relation to its assets and liabilities.  Necessary adjustments could then be implemented, which he was confident the Council was already doing. 

Panel Members praised the Food Festival in Wolverhampton which had taken place earlier in the year, where a large proportion of Millennials had been present.  They asked for the Festival to be expanded into the City Centre.  Some food outlets had run out of food as the event had been so popular.  The Service Director for City Economy welcomed the idea of stretching it through the City Centre. The Cabinet Member for City Economy stated that a three-day Victorian Christmas Market was being planned in the same location and of a similar size to the Food Festival.  If this was successful it would continue in future years. 

A Panel Member stated more hotels were needed in Wolverhampton to attract people to the area and boost the local economy.  The Service Director for City Economy stated that they were receiving enquires and agreed it was important to encourage people to stay overnight as they spent significant more money when staying over. 

Resolved:

A)   That the feedback received at the meeting be forwarded to Scrutiny Board for consolidation and onward response to Cabinet.

B)   That the Scrutiny Panel response be finalised by the Chair and Vice-Chair of the Scrutiny Panel and be forwarded to Scrutiny Board for consideration.