Agenda item

To consider a report by the Chief Finance Officer, which provides an update on the process to deliver the revenue budget for 2016/17 (copy enclosed).

A report by the Chief Finance Officer, 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 introduced the report and provided details of the first two member budget workshops which had focussed on proposals deferred from previous budget workshops, and those proposals upon which there was consensus were taken to Council and approved on 7^th July.  The proposals totalled £650k and were focussed on efficiency and modernisation.  A further set of measures totalling £640k had been presented to Council outlining the savings generated by management decisions within services.  A further proposal submitted by Members was also approved and could save up to £900 per year.

As difficulty in assessing the impact assessment information had been highlighted the process would be reviewed.  No concerns had been raised following consideration of the proposals at the Local Joint Consultative Committee.

The budget workshop held in June had focussed on financial planning and economic forecasts, and had set out national considerations which would impact upon the Council’s budget planning.  The forecast budget gap for 2016/17 was set at approximately £8.8m and to date proposals totalling £4m had been approved.  The significant level of uncertainty around the likely Local Government Settlement was likely to remain in the coming months.  In the absence of more reliable Settlement information, budget plans would need to continue to develop proposals to cover a range of different scenarios.

The impact of the Summer Budget announcements on devolved administrations was unclear, and a spending review was planned for the autumn which would inform the level of Block Grant to Wales.  It was understood that there would be a review at Welsh Government level when detail of the Local Government Settlement would emerge.  Indications suggested the Welsh Block Grant may be broadly flat in cash terms for the next two years, but there would be policy decisions then to inform the distribution between the two most significant Welsh national budgets: local government and health.  Due to the two spending reviews the Draft Settlement for local government would be published later this year.

A series of budget meetings had been held with services reviewing budgets and considering new budget proposals.  The June Workshop had considered an outline of some of the proposals emerging and these would be developed further over the summer.  A pro forma had been issued to Members to help capture any proposals they would like to put forward for consideration, and to date six proposals had been submitted and were being assessed.

Budget proposals identified would be refined and presented to the budget workshop in October, 2015 with the intention to present some to Council for approval in December.  The workshop in December would focus on final proposals to balance the budget, and formal minutes would be taken at all budget workshops in future.  All proposals emerging would be assessed by Finance to determine the likely budget impact in 2016/17.  The latest budget process chart had been included as Appendix 1, and details of the consultation process had been included in the report.

Members referred to the uncertainty with regard to the UK budget to Wales                  and suggested that more Workshops might be required to consider any implications, and the management of any consequential risks, following publication of the settlement.  Councillor Thompson-Hill outlined the process, including timescales, and provided an assurance that additional Budget Workshops could be convened as required.  He noted the importance of considering Members views, the input from services and feedback following public engagement.  During the ensuing discussion the Committee agreed that a Budget Workshop be convened during, or following, the second week in September.

In reply to a question from Mr P. Whitham regarding the provision of assurances that the 2015/16 budget proposals would be delivered, Councillor Thompson-Hill explained that regular reports on the progress of the delivery of the current year’s plans were presented to Cabinet on a monthly basis.  He confirmed that 73% of the identified savings had already been achieved with no major issues having been identified, and that there would be no detrimental impact on the 2016/17 budget.

The Chair expressed concern regarding low attendance figures at Workshops and suggested that consideration be afforded to the timing of meetings, and the possibility of convening evening meetings.  The HLHRDS referred to the outcome of the survey undertaken which had sought Members views on holding evening meetings.  He agreed to raise the matter with Group Leaders and convey the concerns expressed by Members regarding low attendance figures.

RESOLVED – that Corporate Governance Committee:-

(a)            receives and notes the contents of the report on the latest update.

(b)            agrees that a Budget Workshop be convened in September, 2015, and

(c)            requests that the HLHRDS conveys the concerns expressed by the Committee regarding low attendance figures at Budget Workshops to Group Leaders.

             (GW, RW to Action)