Agenda item

A report of the Head of Financial Services regarding the draft Budget 2021-22.

To follow.

A report of the Head of Financial Services regarding the draft Budget 2021-22 was submitted (item 6 on the agenda).

Assisting with consideration of the report: Lead Member of Finance and Property Services, Strategic Director, Environmental and Corporate Services and Head of Financial Services.

Summary, key points of discussion:

·         reduction in the number of scrutiny committees from four to two and whether this would impact the ability of councillors to scrutinise matters thoroughly.  Considering the number of issues that had been scrutinised, some project savings were likely to have been made as a result of scrutiny but did not appear to have not been taken into account.  It was explained that savings had been identified through workshops with Cabinet Lead Members to review options and this had been one of the savings identified.  The cash saving of £10k did not include the resource saving of officer time in servicing scrutiny committees.

·         whether councillors had been consulted regarding the reduction of member grants from £1000 to £500.  As the minimum limit for grants to be allocated was £250 this could impact small community organisations.

·         concerns regarding proposed £200k service pressure for Supported Living additional Housing Benefit losses could rise.  It was noted that this was not under the Council’s control, it could vary significantly, as providers were increasing living capacity to meet the needs of the homeless.  However negotiations were in progress with the two main housing providers to become registered providers, which would enable the Council to claim back some of the losses.  This was not the case for residents claiming Universal Credit.

·         the recently published pay freeze for public sector workers did not directly impact local government pay as it was not directly regulated by Government but as local government pay tended to reflect trends in public sector pay there could be an impact on future pay rises.

·         there was an element of uncertainty over the figures in the draft budget with Business rates and New Homes Bonus identified as having a downside risk, but this would be clarified once accurate data was available in mid-December.

·         Corporate staff - Terms and Conditions (appendix 1) related to the proposed discontinuation of essential car user allowance.  Although included in the draft budget the proposal would be subject to standard HR consultation processes and was not confirmed to be included in the budget at this time.

·         the deletion of vacant posts or vacant hours had been identified by Heads of Service and tended to relate to circumstances where staff had reduced their hours through part time working or phased retirement.  Other savings may be considered in the new year.

·         it was perceived that the Council historically did not have a good track record at achieving savings.  Concerns were raised regarding keeping the reserve at £2mill working balance and what plans were in place if the uncertainties around identified schemes in the budget were to come in at a higher service pressure.  There were other reserves unallocated totalling £5.16mill (reinvestment, capital plan) that could be utilised if significant adjustments were required.  A detailed budget monitoring exercise reviewing the outturn position this year would be completed at Period 7 and caution had been applied with respect to COVID funding in the following year which would be reviewed before final budget was presented.

·         Business rates appeals adjustment (p 9) figures were based on last years’ provisions which had been determined as too high so this income reflected an accounting adjustment exercise.  It was a ‘one-off’ adjustment and  all preceptors would receive a contribution from this budget income.

·         it was recognised that there were big issues, and sensitivities in this budget and it was important to ensure these were identified and highlighted to the Cabinet.  It was hoped that the Government provided the financial support to make the budget balance.  The provision of accurate information by mid-December after this meeting had been held, could impact the Panel’s scrutiny of the budget and change any recommendations it wished to identify  It was noted that the numbers contained in the draft budget were as robust as possible and that if any material adjustments were required after the receipt of the Government information this would be shared with the Panel.

The Lead Member for Finance and Property Services stated that the budget had been drafted without knowing what the government settlement would be.  There was still further savings to make but this would not necessarily be during 2021-22 financial year, and the Council were looking to maintain the £2mill working balance.

Several queries with respect to Service detail would be raised with Heads of Service outside of the meeting.

It was stated that it would be beneficial if notes could be provided for the draft budget as detailed in Appendix 3 of the report for Loughborough Special Expenses.

RESOLVED

1.    that the following information be requested from Heads of Service and circulated to the Panel:

a.    reduction in the number of Scrutiny Committees (p15) – the income obtained from savings made by scrutiny recommendations, how the savings for reducing the number of committees had been calculated;

b.    reduction of Member Grants funding from £1000 to £500 (p15) – understanding of the consultation process;

c.    Loughborough Special Expenses (Parks – Loughborough and Loughborough in Bloom) (p18)– a breakdown of figures;

d.    deletion of vacant posts or vacant hours (p15) – the total numbers of deleted posts;

e.    Fusion Contract / Leisure Centres (p16)– how deferred subscriptions or refunds were handled and total costs;

f.     Town Hall (p16)– how deferred tickets or refunds had been handled and total costs;

g.    Tenancy Services (p17) – further information regarding the cleaning of HRA properties and pest control;

h.    Compliance (p17)– further information regarding the reduction of fire alarms budget

2.    that the Strategic Director, Environmental and Corporate Services provides a verbal update at the next meeting of the Panel regarding any significant adjustments to the draft budget after the Government funding is received in mid December;

3.    that the Panel endorses the recommendations in the report to Cabinet.

Reasons

1.    the Panel wished to receive additional information to support its scrutiny.

2.    The Panel considered that any recommendations it may wish to make after scrutinising the draft budget 2021-22, as presented at this meeting, may change in light of decisions made by the Government to provide funds in mid-December and that it wished to be cognisant of all the facts before submitting its recommendations to the Scrutiny Commission.

3.    The Panel considered the recommendations were appropriate.