Agenda item

To consider a report by the Head of Finance and Assets (copy enclosed) which provides an update on the process to deliver the revenue budget for 2015/16.

A report by the Head of Finance and Assets (HFA), which provided an update on the process to deliver the revenue budget for 2015/16 and 2016/17, had been circulated previously.

Councillor J. Thompson-Hill explained that the Budget for 2015/16 had been approved by Council and the Budget Workshops focussing on saving proposals for 2016/17 had commenced, and details of proposed timescales had been included in the report.  The forecast budget gap for 2016/17 was approximately £8.8m.  Savings of £2.7m had been approved as part of the current process leaving a gap of approximately £6.1m.

A chart showing the proposed budget process had been included as Appendix 1.  It outlined the process to deliver the 2016/17 savings and progressed the process which had commenced in March, 2014.  The saving ‘phases’ were the decision points taken to Council for approval.  As Phases 1 to 3 had been approved the chart commenced at Phase 4.

Details of the significant consultation process undertaken to deliver the 2015/16 and 2016/17 budgets was provided.  The budget process had been extremely challenging and the engagement and support of Members in the decision making and scrutiny of the process had been crucial.  The risk management framework proposed to manage the implementation of the 2015/16 budget savings had been included in the report.  It was emphasised that this was the most challenging financial period the Council had faced and failure to deliver an effective budget strategy would put further pressure on services in future financial years.

          Risk management of the process would be a key consideration of the Committee and possible risks around the implementation of each saving proposal had been presented at workshops as they developed.  SLT had focussed on risk management of the process and it had been proposed that there should be four strands to a risk management framework underpinning the implementation of the 2015/16 budget savings, and these had been detailed in the report.

In reply to a question from Councillor S.A. Davies regarding the advantages of the provision of in depth detail of expenditure lines for individual services, the CA confirmed that a summary of the service budget, and up-date of the figures presented for 2015/16 could be provided.  The CA responded to a request from the Chair and agreed that hard copied of the information, including spread sheets, be provided.

The Chair referred to the issues raised by Mr P. Whitham at the previous meeting with regard to the risk agenda in relation to financial, reputational and performance risks.  He confirmed that SLT had considered the matters raised but he felt that reference in the report to the outcome of the deliberations lacked depth.  In reply to a request from the Chair it was agreed that further in-depth report be presented to the Budget Workshop in June, 2015 for consideration by Members.

Mr P. Whitham explained that the concerns he had expressed related to the associated risks for the budget process for 2016/17, and he felt that SLT had appeared to focus on the monitoring of the process for 2015/16.  He was pleased that SLT had considered the risk agenda aspect but expressed disappointed that matters pertaining to the failure to take decisions at an early stage, and staff savings being implicated by pension costs, had not been deliberated.  The CA outlined the process which included monitoring the impact of the 2015/16 proposals, and outlined the process for the consideration of the 2016/17 proposals.

In reply to concerns raised by Councillor M.Ll. Davies, it was agreed that the issue of the loss of Welsh speaking members of staff be highlighted as a risk.  The Chair referred to Council’s Statutory Duty with regard to Welsh language legislation.

Following further discussion, and subject to the issues raised, it was:-

RESOLVED – that Corporate Governance Committee receives and notes the contents of the report on the latest update.

     (RW to Action)