Agenda item

To consider the content of the Council’s Medium Term Financial Plan and to determine whether to make any recommendations for the consideration of Council on 20th February on this subject.

(The Committee is also advised to make reference to the minutes of the meeting of the Executive Committee held on 7th February 2017 during consideration of this item).

(Report attached)

Officers presented the Medium Term Financial Plan 2017/18 – 2020/21 and in so doing highlighted the following:

·                Updated information which had been provided in the additional papers pack, following revisions made by the Executive Committee.

·                The inclusion of a fourth year in the plan – this had not been included within the Efficiency Plan.

·                Quarterly updates would be provided in order to monitor the areas which had been included within the Efficiency Plan.

·                A significant reduction in the Revenue Support Grant and how this would be addressed. 

·                The report contained information about how the Council would maintain funding in order to meet its strategic purposes and ensure residents received quality services that met their needs.

·                The provision settlement and a number of issues which were included within the information received; projections on Council Tax income; additional flexibility on Social Care, a new approach to the New Homes Bonus Scheme and the ability to increase Council Tax by two per cent or £5.

·                The Capital Programme had been extended to four years and Heads of Services needed to be reminded that this should be accurately recorded for future years.

·                The key themes identified in the Efficiency Plan needed to be mapped out, also over a four year period, to ensure that savings were achieved. 

·                More detailed reports would need to be prepared over the following years and these would be brought before both the Overview and Scrutiny function and the Executive Committee at regular intervals.  The first of these was expected in June.

Officers provided Members with detailed information showing the projected shortfall should no further savings be made, which included unavoidable pressures and capital bids.  Additional savings had been identified and these were also included within the report, together with the staff suggestions which were designed to secure either savings or additional income.  Particular reference was made to unavoidable pressures, including the Microsoft License Cost increase, and it was confirmed that these could not be shared across Redditch and Bromsgrove Councils.

The proposals for savings put forward from the Administration were considered in detail, in particularly those in respect of Leisure Services and the surrendering of interest in sites at Kingsley Sports Centre and Arrow Vale Sports Centre.

At this stage of the meeting, in the absence of the Chair of the Committee, as detailed in Minute No. 68, Councillor Tom Baker-Price chaired the meeting whilst the Committee considered the surrender of interest in the Kingsley Sports Centre Site.

Members discussed the cost of the services provided at Kingsley Sports Centre and it was confirmed that discussions would be held with the school in respect of the withdrawal of those funds and the savings which could be made.

Further clarification was requested in respect of the costs for both Kingsley and Arrow Vale Sports Centres, in particular the cost of credit card payments and why these costs were not being passed on to the customer.  Officers confirmed that this had been a decision made by Members, but was something which had been highlighted in the staff suggestions and would be investigated further in the future.  Charging for cash payments was something which would not be considered, although it was noted that a number of other authorities did not accept cash. 

Consideration was given to how the sites could be made more efficient rather than surrendering the Council’s interest and concerns were raised about the potential level of interest from other parties in running them.  It was confirmed that once the Council had withdrawn its funding it would be the responsibility of the schools, as the owners of the properties, and the Council would have no further interest.  Members discussed how the Council needed to ensure it had a balanced budget with minimal disruption to services.

Officers went on to explain a number of other savings which had been put forward by the Administration including sourcing external funding for the Christmas Light Display and charging for the Shopmobility service.  In this respect a survey of users had been carried out and from the results there was general consensus that customers would be happy to be charged.  Charging for pre application services with developers and a review of the pre 9.30 am concessionary bus travel would also contribute significant savings.

A number of other savings and income streams were highlighted including the reduced cost of landscaping on the highways, the introduction of a Garden Waste Service, a review of charging for pest control, review of fleet costings and revenue opportunities including car parking.  Savings still needed to be made in respect of the management structure, which had been included within the Efficiency Plan.

Following presentation of the report Members discussed a number of areas in more detail:

·                Members thanked officers for the hard work which had been needed in order to achieve a balance budget and for the clear and comprehensive report.

·                The areas to be included within the Leisure Services model and the options available.  Some Members expressed concerns about the amount of savings proposed and how these would be achieved.

·                A formal business case to be brought forward with the options available for Leisure Services.  It was confirmed that Members would receive a report updating the information received by the Committee in 2015.  The next stage would be a more detailed high level report providing the options available and how the savings would be achieved. 

·                The cost of the work by the consultants in respect of Leisure and Cultural Services with questions being raised about the potential for officers to carry out that work.

·                What services would be included within the business case for Leisure and Cultural Services. 

·                The option for the National Trust to be invited to manage the Bordsley Abbey site.

·                The cost of Microsoft Licenses and the procurement process in order to achieve best value for the Council.

·                Savings and the benefits and pitfalls of the introduction of a four year election system as opposed to the current elections by thirds system and whether this provided the Council with stability.

·                Members were impressed with the variety of staff suggestions put forward.

RESOLVED that

the report be noted.