To receive a presentation detailing the position of the Council’s budget and estimates for the budgetary position in 2014/15.
(Presentation to follow).
Minutes:
Officers delivered a presentation (Appendix 1) which highlighted the current financial position and the resultant deficit. Members were informed that Heads of Service had been asked to provide details of any savings which could be made and further information would be provided for the Committee’s consideration at the following meeting in February.
The following areas were highlighted within the presentation:
· A history of the funding reductions year on year, which to 2015/16 was approximately 41% overall.
· The reduction in Council tax support to 80%.
· Further reductions over the next three years and the overall affects of these throughout the country.
· Background information on the community care and crisis loans and why these funds would not be available in future. This was due to some authorities not using the funds provided and therefore it had been assumed that it was not needed.
· How the Council was now looking at the budget in a different format, which concentrated on costs in relation to the Council’s strategic purposes. The figures therefore did not relate to specific services as had been the case in the past.
· The role and cost of those services which were classed as “enabling” others to carry out those purposes and how these needed to be reduced in order to be able to support frontline services more.
Members raised concerns in respect of the financial cuts that were expected to be made by Worcestershire County Council (WCC) and the impact of these upon the Council. Officers confirmed that the WCC budget would be agreed shortly and that it was likely that every area of it would have an impact on the Council, though as yet this had not been factored in to the Council’s budget figures. Members also asked whether there had been any consultation with Officers across the district or with the third sector and it was understood that there had not been any as far as Officers were aware. It was crucial that people responded to any consultation and in particular Members discussed the Future Lives consultation and the associated budget which was likely to be significantly reduced.
The Committee queried whether the Council had been pro-active in determining whether there were services at WCC which the Council could provide for a fee. It was confirmed that senior Officers were holding discussions with WCC in respect of this.
Officers also discussed with Members the use of both general and capital reserves and the knock on effect of their use on balancing the budget. It was acknowledged that it would be difficult to replenish these reserves in the long term. Service reviews for all services following transformation would deliver significant savings in the future. Members were reminded that there continued to be a freeze on vacant posts, which was in place to protect current staff wherever possible. Savings through transformation had been received from several teams, however some were still outstanding as the work had not been completed and it was anticipated that further savings could be made towards the remaining shortfall.
RESOLVED that
the presentation be noted.