Agenda item

[To consider the arrangements for ensuring adequate identification and management of budget risks, and the arrangements for budget planning and forecasting for future years]

Cllr Andrew Johnson and Mark Taylor presented a report which provided information about the Council’s finances which had been reported to Cabinet and Cabinet (Resources) Panel.

The Panel considered the arrangements for ensuring adequate identification and management of budget risks and budget planning and forecasting for future years.

Cllr Andrew Johnson said the report was very comprehensive and detailed.  He referred to the highlights contained under paragraph 3, ‘managing the budget cuts – the next phase’, and the requirement to identify £25 million of additional savings for 2015-16. He indicated that £18.1 million of savings had been identified for 2015/16 and that work is continuing to identify a further £1.7 million of savings.  He advised that a further £35 million of additional savings has to be identified taking the total to be identified to £60 million, in order to address the projected budget deficit over the medium term to 2018/19.

Councillors noted the enormity of the task, recognising that it is one thing saying and identifying the saving and another thing achieving it.  Cllr Andrew Wynne asked if the savings were across the board or service specific. 

Cllr Andrew Johnson advised that the detail is in the 25 June 2014 Cabinet report, Budget next phase table 1 and that savings were indicated in table 6.

Cllr Rita Potter asked if the Council is meeting its legal duties.  Mark Taylor confirmed that this is the case, the budget was agreed in March 2014, at that time the Council resolved it would make the savings; it is currently identifying the way to do that. Cllr Rita Potter asked about the risk of additional unexpected resource implications, such as increasing looked after children (LAC) numbers.  Mark Taylor said there was no spare capacity in the budget and that in those circumstances the council would have to consider additional savings from other services.

Councillor Andrew Johnson advised that the council was pursuing early intervention, trying to prevent children coming into care and also trying to reduce the numbers of council fosters carers and use agency foster carers. Other interventions are being considered such as trying to get specialist foster care placements for the more difficult cases.  Mark Taylor advised that there are robust plans to underpin the savings put forward. The Community directorate are taking plans forward; Cllr Andrew Johnson advised that he is meeting with the Director and Cabinet Member every six weeks for specific budget meetings. 

Mark Taylor said that in relation to the budget the Council has to be satisfied, Price Waterhouse Cooper (PWC) need to be convinced and Councillors have to be convinced that the budget and savings are achievable, somewhere between prudent and not too ambitious.

Cllr Sweetman advised that when using her IPad the links on Modern.gov to the budget report are broken.  Mark Taylor acknowledged the broken links and agreed to report this back to the Democratic Services Manager.

Resolved:

1.    That the Budget update and review be noted.  

2.      That Confident Capable Council Panel receives regular Budget Update reports.