Agenda item

To receive a report from the Head of Finance and Assets (copy enclosed) on the proposed process to deliver the revenue budget for 2015/16.

A copy of a report by the Head of Finance and Assets, which provided an update on the proposed process in the delivery of the revenue budget for 20125/16, had been circulated previously.  The Council’s approach to setting its revenue budget had been to incrementally reduce costs based on saving proposals from services and corporate budgets.  The majority of proposals had been accepted and the process had delivered successful budgets.

Councillor J. Thompson-Hill introduced the report and explained that future settlements in the Corporate Plan had indicated that savings of approximately £12m might be required over the next two years and a new approach to savings might be required.  Appendix 1 detailed how the process might work and further detail had been incorporated in the report.  Budget saving targets would be divided into three strands for both 2015/16 and 2016/17 and a table indicating the strands, with approximate values, had been included in the report.  The values for the first two strands could be estimated with a degree of certainty.  The third strand would be more difficult to estimate and was currently shown as a balancing item to achieve a target of £12m savings over the next two years.  Two services had undertaken pilot exercises which had been extremely useful in understanding how the new process would work.  A summary of the Freedoms and Flexibilities (F&F) process had been outlined in the report.

The output from both the F&F and the service budget meetings would be collated and presented initially to SLT and then to three Member budget workshops in July, and a summary of the process had been included in the report.  Budget workshops would provide an opportunity for wider Member input to the recommendations.  Reference was made to Appendix 1 where the options were shown emerging from the Member workshops.  Proposals supported by Members would be submitted to Council in September for approval.       It was proposed that all budget workshops would be day events and a draft outline of the service areas focussed upon in each of the July workshops had been included.  This would complete Phase 1 of the budget process and move into Phase 2.  The same approval and consultation process would follow with more proposals being submitted to Council in December.

Phase 3 would be the most difficult stage of the budget to achieve as it was likely to include the most contentious proposals.  The outcome of the first two phases would help plan the approach to the third and this may have to be revisited in the autumn. 

Councillor Thompson-Hill provided a detailed summary of provisional key dates which had been indicated in a table included in the report, and he confirmed that some of the proposals submitted could be subject to public consultation.

Mr P. Whitham suggested that consideration be afforded to project or programme management with regard to the risk and mitigation process, which could assist the reporting mechanism in relation to summarising key issues.  The CA outlined the process adopted to ensure that all proposals and details were captured for deliberation, and he provided details of the new template developed to assist the Freedoms and Flexibility process.

Councillor S.A. Davies emphasised the importance of Member involvement and the need for openness and transparency in the budget process.

The following response was provided to questions submitted and issues raised by Councillor G.M. Kensler:-

-                  Correspondence would be circulated to Members prior to budget meetings.

-                  Single Status work had been completed.  However, elements pertaining to back pay would require finalisation.

-                  There had been minimal impact to date on the Council following the introduction of the Bedroom Tax.     

-                  Issues pertaining to Town and Area Plans would be incorporated in the budget process, together with, Public Realm and Heritage issues.

-                  Details were provided of financial working practices in terms of Net and Gross figures.   

In reply to concerns raised by Mr P. Whitham regarding the need for assurances that the budget process was acceptable and compliant, it was agreed to include in the timetable of key events the process review to be undertaken by CET, after the first two or three F&F meetings, and the inclusion of the provision for reporting the outcomes and progress of the review to the Corporate Governance Committee.

The CA agreed that details of the pilot exercises undertaken by two services could be presented to Council Briefing, together with, copies of the template to be utilised for all services which sets out the service budget over the functions and services it delivers.  The HLDS and HIA provided details pertaining to the identification of the provision of Statutory Services by the Authority and the need to focus on potential outcomes.

Councillor J. Thompson-Hill referred to the key events programme and confirmed that it would not be viable to repeat sessions.  He explained the onus would be on Members to attend meetings where possible or pursue any outcomes.  The Committee agreed that details of Members invitations to attend meetings be included in the key events programme.

Following further discussion, it was:-

RESOLVED – that, subject to the issues raised and comments made by Members, the Corporate Governance Committee:-

(a)            receives and notes the contents of the report.

(b)            agrees the inclusion, in the timetable of key events, the process review to be undertaken by CET, and provision for reporting the outcomes and progress of the review to the Corporate Governance Committee.

(c)    requests that details of the pilot exercises, and copies of the template, be presented to Council Briefing, and

(d)   agrees that details of Members invitations to attend meetings be included in the key events programme.