Agenda and minutes

[To receive any apologies for absence]. 

There were no apologies for absence. 

[To receive any declarations of interest]. 

Cllr Phil Bateman declared a non-pecuniary interest for item four – 2023-2024 Draft Budget and Medium Term Financial Strategy 2023-2024 to 2025-2026,    as a Director of Birmingham Airport, as the Chair of Ashmore Park and Phoenix Nursery School Board of Governors, and he was Acting as a Chair of the Board of Governors of Wood End Primary School (from 27 April). 

[To approve the minutes of the meeting held on 6 December 2022 as a correct record.]

Resolved: That the minutes of the meeting held on 6 December 2022 be approved as a correct record and signed by the Chair.

[To consider the proposals for the 2023-2024 Draft Budget and Medium Term Financial Strategy 2023-2024 to 2025-2026. A second report details the six Scrutiny Panels responses, when it was considered by each of the Panels.  The Draft Budget Book for 2023/2024 is also included]. 

[The two reports and the Draft Budget Book are marked: To Follow]. 

The Cabinet Member for Resources and Digital City introduced the report on the 2023-2024 Draft Budget and Medium Term Financial Strategy 2023-2024 to 2025-2026.  It had been a particularly difficult time to prepare a balanced budget due to the high levels of inflation impacting on the Council, residents and businesses.  In order to set a balanced budget they had to increase Council Tax. 

The Director for Finance commented that the report contained information on the feedback from the Scrutiny Panels, which over the Autumn period and into the New Year had looked at performance and budget information relating to their remit.  She gave a presentation summarising the main points of the report, a copy of which is attached to the signed minutes.  The presentation slides on the Draft Budget gave information on the following areas:- 

·       The Provisional Settlement.

·       Draft Inflation and Growth.

·       Information relating to the budget in Adult Social Care.

·       The Draft Net budget by Service.

·       Council Tax – It was necessary to increase the Council Tax by 4.99% in order to set a balanced budget.  The net forecast budget was £306.1 million.

·       Key Risks and uncertainties in 2023-2024 and MTFS, which included cost of living and rising inflation and an increase in demand for services such as in Adult Social Care.

·       Efficiency Targets – Wherever possible these targets would be distributed prior to the 1 April 2023 and would be monitored throughout the year through the quarterly monitoring reports. 

·       The Strategy to manage risks in 2023-2024.  The budget was based on prudent assumptions supported by detailed modelling and benchmarking with peers.  Corporate Contingencies were held to mitigate the impact of expected inflation and demand but where the probability and impact were not sufficiently known to build into service budgets.  Reserves were held to mitigate the impact of specific risks and also against unforeseen events. 

The Director of Finance presented slides on the future challenge for the Medium Term Financial Strategy (MTFS).  The Funding Settlement was for one-year only.  The Provisional Settlement was based on the Spending Review 2021 funding levels, updated for the 2022 Autumn Settlement.  There were high level assumptions for 2024-2025, the National figures had been published for some grants such as Social Care, but not for all the grants that the Council received. 

The Director of Finance stated that the following assumptions had been made in the MTFS on funding:-

·       Council Tax would increase by 2.99% - in line with the referendum threshold and 1.99% thereafter.

·       Adult Social Care precept levy – 2% for 2023-2024 and 1% for 2024-2025.

·       The Business Rates retention scheme would continue with no detrimental impact of a Business Rates reset or changes to the retention scheme.

·       Top Up grant would increase by inflation over the medium term.

The Director of Finance remarked the following medium term assumptions has been made:-

·       The draft forecast deficit was around £16.4 million in 2024-2025, rising to around £22.9 million by 2025-2026.

·       There continued to be uncertainty about future funding.

·       The MTFS projections were based  ...  view the full minutes text for item 4.

[To consider the report on the Our City: Our Plan Refresh, which will be received by Cabinet]. 

The Director of Strategy gave a presentation on the Our City: Our Plan Refresh, a copy of which is attached to the signed minutes.  The Our City: Our Plan was the Council’s Strategic Framework for Levelling Up.  The Our City: Our Plan was reviewed annually.  The refresh had included:-

·       Strategic Narrative: New Policy areas captured e.g. cost of living crisis.

·       Objectives and Outcomes: Consistent with previous version.

·       Key Activity: Activity Updated.

·       Performance Framework: Changes to Performance indicators where required due to exceptional circumstances.

The Director of Strategy remarked that the plan had been developed through extensive engagement with local people.  The key principles in the 2023/2024 Performance framework were as follows: -

·       All indicators were published in the plan and did not change throughout the year unless there were exceptional circumstances.

·       Indicators were classified by system / Council to make clear where the Council had less direct overall control on performance.

·       Reporting was on a quarterly basis, and reference targets, historical data and benchmarking wherever data was available.

·       Reporting on a quarterly basis would continue to be alongside financial performance and the strategic risk register, to Cabinet and Scrutiny Board. 

The Director of Strategy summarised the changes which were being made to performance indicators as detailed in the slides.

Members asked questions about engagement and consultation.  The Director of Strategy responded that there were a number of different mediums used.  Surveys was one of the methods used.  In the final report to Cabinet, before Full Council, she would provide further information on the response rate and methods used.  

The Vice-Chair gave the view that he felt the Our City: Our Plan could be more ambitious.  As an example, he stated the Plan could give a target for reducing youth unemployment by a certain percentage by next year. 

A Panel Member raised the importance of a thriving local economy within the Council’s Wards.  She wanted to see monitoring and evaluation of the strategic impact of the Council on economic growth in the Wards.  The Director of Strategy responded that the performance management approach was continuing to mature in terms of the data and how Power Bi dashboards were being used to allow Councillors to view the data in an accessible way.  Where possible they would try and be able to show data in a ward-by-ward format.     

A Panel Member asked how the Council was utilising the fame of successful sports persons in the City to encourage others to live active and healthier lifestyles.  He also asked about alcohol problems in specific communities and what the Council was doing to help address the problem.  Finally, he asked what promotion the Council did to encourage people to keep places tidy and clean and clean up after dogs. 

The Executive Director of Families referred to the work which Schools undertook in contacting sports persons directly to work with them.  The Council also invited sports stars to the Children and Young People in Care Awards.  She was aware that some of the youth organisations in  ...  view the full minutes text for item 5.

[To consider the forward plan of Key Decisions]. 

There were no comments raised on the Forward Plan of Key Decisions. 

[To consider the Scrutiny Work Programme]. 

The Vice-Chair stated he was pleased to see that an item on the Levelling up round 2 bids had been added to the Scrutiny Work Programme.  A Member of the Panel added that she thought the report should include full details on all the bids that had been submitted and which one’s had been granted or refused. 

The Vice-Chair also commented that he had asked for an item on the use of the City’s Hotels for accommodating asylum seekers.   

[The date of the next scheduled meeting of Scrutiny Board is 7 March 2023 at 6pm]. 

The date of the next scheduled meeting of Scrutiny Board was confirmed as 7 March 2023 at 6pm.  The Chair indicated that due to the size of the proposed agenda for the 7 March meeting, there could be a need to have a second meeting in March of the Board.  Members would be notified in due course if a second meeting was required.