Issue - meetings

[To provide an update on the key risks the Council faces and how it can gain assurance that these risks are being mitigated]

Hayley Reid, Senior Auditor presented the report on the key risks the Council faced and how the Committee could gain assurance that the risks were being mitigated.

Councillor Philip Bateman MBE asked about the Council’s work on Brexit (risk 35) and whether there was an economic assessment that led to Brexit being identified as a risk for the Council and the wider City.  Claire Nye, Director of Finance reported that the way the Council approached Brexit was to set up a group to consider the implications and how they could be addressed. The Council was also carrying out research.  It was difficult to identify the implications at this stage. There may not be an immediate direct financial implication to the Council but there would be implications.  Councillor Philip Bateman MBE said that there were some concerns regarding the Council being able to continue to operate post Brexit in terms of access to fuel and energy supplies, delivery of social services and issues relating to the provision of services to the general population.  He requested more information on the planning the Council had undertaken.  The Director of Finance reported that work was ongoing. The Council’s Director of Public Health was looking at the implications of Brexit on pharmaceuticals and the Procurement service was looking at the implications for the supply chain.  An update would be submitted to a future meeting.

The Chair requested, and the Committee agreed that the risk owner for risk 35 - Brexit be invited to the next meeting to discuss the risk in more detail.

Mike Ager, Independent Member asked about the Council’s interactions with the business community on Brexit.  The Director of Finance reported that the Council’s Director of City Economy was talking to local businesses and the Black Country Consortium, of which the Council was a member was also engaged in discussions.

The Chair said that he was concerned at the increase in the risk of the Medium-Term Financial Strategy (MTFS) to red.  He asked for the reasons for the increase and sought reassurance as to when it was anticipated that the risk would be downgraded.  The Director of Finance explained that the Government’s Fair Funding Review was slipping.  The current view was that there might only be a one year local government financial settlement.  The Council was also facing pressure on adult social care and in children’s services.  The number of children and young people in care was being managed well but the number of costly placements were increasing.  The MTFS was being prepared and an update would be presented to Cabinet in February and July 2019.

Bill Hague, Head of School Organisation was also in attendance to present an update on the current financial position of maintained nursery schools and to respond to the Committee’s questions on Government funding for maintained nursery schools after 2020.  He reported that it was not known whether the funding would continue beyond 2020.  A response was awaited from Government on the issue. A guidance note issued last  ...  view the full minutes text for item 7