Agenda item

The Operational Finance Manager introduced the report.

The Committee was informed that the budget proposals had been developed to support a ninth successive Council Tax freeze for all residents, and an eleventh year for over 65s, whilst avoiding implementation of the Social Care precept and maintaining frontline Council services.

This represented a significant achievement in light of continuing cuts to government funding for local government, estimated at 17% in 2017/18 alone, alongside a growing population, driving an ever increasing demand for locally provided services.

The Committee was informed that savings had been developed under five broad themes, which focused on maintaining the existing service offer: Zero-Based Reviews; Preventing Demand; Service Transformation; Effective Procurement; and Maximising Income.

Members were asked to note that the draft budget report did not include the impact of the recent Local Government Provisional Settlement, which would be addressed in the budget report to February Cabinet.

Corporate Position

Members were informed that the final funding settlement for 2017/18 would not be available until February and so the budget had therefore been drafted on the latest estimated position.

The Committee was informed that the principal challenge in delivering a balanced budget for 2017/18 was the development of significant savings, with the savings requirement for 2016/17 originally being estimated at £18,464k. This had since been revised upwards to £19,388k, primarily as a result of increased inflationary pressure on the cost of Social Care placements. Taking account of the planned drawdown of £5,000k from General Balances, this had left a net savings requirement of £14,388k.

The budget proposals presented to Cabinet in December 2016, showed a £11,314k projected reduction in Government funding, being off-set by increased Council Tax and Business Rates receipts of £4,638k, to reduce the net reduction in resources to £6,162k.

Inflationary pressures and growth in demand continued to drive up the savings requirement, with savings proposals of £14,388k presented in this draft budget.

Savings

The Committee was provided with details of the savings proposals across the Council for 2017/18, which totalled £14,388k. This included £1,669k of full year effects of prior year savings. The total savings included in the draft budget for Adult Social Care, Public Health and Housing Services/Group totalled £3,837k and were made up of the following.

Adult Social Care

Transformation - £1,627k

Zero Based Reviews - £1,106k

Preventing demand - £407k

Effective procurement  - £305k

Income generation - £210k

Housing

Members were informed that savings which fell under the remit of this Committee, which would be delivered within Residents Services, totalled £182k. This figure comprised of £131k for reviews of Housing/Homelessness functions and £51k from Zero Based reviews.

Capital Programme

The Committee was informed that the draft capital programme would need to be revised once the final impact of the settlement was known, as this would impact on the affordability of the programme.

Members were provided with a summary of the draft capital programme which fell within the Committee's remit:

· The development of a new Dementia Centre.

· The development of a housing project at 1 & 2 Merrimans.

· The Belmore Allotments Housing Development - This was a housing development in Hayes under a range of tenures including a proposed 30 units for Discount Market Sale, to be financed through the General fund.

· The development of a programme for the Disabled Facilities Grant.

· The development of a programme for the Private Sector Renewal Grant / Landlord Property Renovation Grant.

Reference was made to the proposed savings in Social Care staffing which would result in efficiency savings. The Corporate Director of Adults, Children & Young Peoples Services explained that the proposed savings would not impact on front line services, but would delete some of the vertical management posts.

The Committee was informed that inflationary pressures were causing an impact on social care costs and the Council was looking at different models of delivery. Recruitment and retention of social workers had improved as the Council was more competitive in terms of salaries, and conditions of service.

Having considered the budget proposals, the following comments were asked to be submitted to Cabinet on the budget proposals: 

The Committee noted the budget proposals and the continuing budgetary pressures, particularly in social care. Officers were thanked for their work in social care under the financial pressures which they faced, and for providing first class services to residents.

The Committee welcomed the continuing success of the Right to Buy Scheme and the use of the proceeds to support the construction or purchasing of 335 new properties.

The Committee also welcomed the merging of Adult and Children's Social Care Teams which would improve efficiencies.

RESOLVED

1.      That the budget projections contained in the report be noted and the comments made by the Committee be submitted to Cabinet.