Agenda item

Report of the Chief Executive

Further to Minute No. 162 of the meeting held on 16 December 2010, the Cabinet considered the report of the Chief Executive which provided an update on the Transformation Programme and set out recommendations on the relative priority of Council services in the light of the forecast savings required following the Government’s Comprehensive Spending Review.  This prioritisation informed the identification of further budget options which will reduce the 2011/12-2013/14 budget gap.

A schedule setting out the feedback of comments posted on the Council’s website with regard to the Transformation Programme and the prioritisation of Council services was circulated at the meeting.

Mr. J Allan, Branch Officer of Unison addressed the Cabinet on the trade union perspective of the budget savings to be made by the Council and the specific proposal set out in the report for a 5% reduction ‘across the board’ in employees pay

The Chief Executive reported a correction in Appendix C -PE35, relating to the funding stream of the Southport Partnership, from the European Regional Development Fund to the North West Development Agency and a correction to the annual cost of service/activity from £100,000 to £112,400.  In addition, she referred to the references in Appendix E, under Sure Start and Tourism, to decommissioning which should be removed, as these were meant to be Service descriptions.

This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.

RESOLVED:  That

(1)      the progress to date on the Transformation Programme be noted;

(2)      the Economic Development Division review be endorsed and the Council be recommended to give approval to the activities of the Economic Development Division being directly funded from successful bids for external funding, realising a core budget saving of £714,000, and the Economic Development Division be allowed to reinvest future “other achievements” of external funding into maintaining and further developing service provision;

(3)      the high level implementation plans contained in Appendix A of the report be endorsed and it be noted that the financial implications of any implementation beyond 1 April 2011 would be built into the financial forecasts;

(4)      the Decommissioning Guidance contained in Appendix D of the report be endorsed;

(5)      approval be given to a Cabinet Meeting being convened, as provisionally advised at the last meeting, on Thursday 17 February 2011 at Bootle Town Hall and it be noted that further proposals will be presented to that meeting.

(6)      the Council be recommended to give approval to officers being mandated to continue the consultation process with employees and Trade Unions with a view to realising the reduction in costs identified for the Specialist Transport Unit including the issue of relevant statutory and contractual notifications;

(7)      the Council be recommended to approve the further tactical savings options set out in Appendix B of the report subject to:

          a)       the amendment of option SCL4A to a budget saving of £40,000 to be achieved across the Borough including a reduction in winter bedding

          b)       the deferral of option CM60

          c)       a revised charge of £10 for Option CM61 achieving a saving of £10,000 (to be confirmed); and

          d)       the deletion of option CM62;

(8)      the Council be recommended to approve the package of terms and conditions proposals identified in paragraph 4.3 of the report for negotiating purposes and to officers being mandated to continue negotiations with Trade Unions in this respect;

(9)      the Council be recommended to note the activities to cease/reduce as outlined in Appendix C of the report and give approval to officers being mandated to commence a consultation process with partners, employees and Trade Unions with a view to ceasing the activity identified including the issue of relevant statutory and contractual notifications;

 (10)   the Council be recommended to give approval to:

          a)       all Tier 3 Services detailed in Appendix E being de-commissioned to achieve savings of £3.0m in 2011/12;

          b)       subject to the review of Neighbourhoods/Safer Stronger Communities (Tier 1 Service), savings of £1.2m being assumed from these areas from improved co-ordination and the rationalisation of functions. (The detailed achievement of this saving to be reported to the Cabinet meeting on 17 February 2011);

          c)       Saving of £400,000 to be identified in Leisure Centres to reflect smarter ways of working (Tier 1 Service).  (The detailed achievement of this saving to be reported to the Cabinet meeting on 17 February 2011);

          d)       the deferral of any decision on all stages of the Sure Start Programme - Childrens Centres pending a Strategic Review which will consider, the national policy direction, local priorities and the need to engage communities to deliver priority outcomes with fewer resources.  (The terms of reference and the timescale of this review to be reported to the Cabinet meeting on 17 February 2011);

           e)      the previously assumption on Management and Support savings being re-phased to achieve 20% in 2011/12 and a further 5% in 2012/13, thereby increasing the savings in 2011/12 by £1.5m with a corresponding reduction in 2012/13.  (The detailed achievement of this saving to be reported to the Cabinet meeting on 17 February 2011);

          f)        a further review of Tier 2 services being undertaken to determine if and how 50% cost savings can be achieved in 2011/12.  (The outcome of this review to be reported to the Cabinet meeting on 17 February 2011 and to include a detailed assessment of the relative priority of service outcomes and implications); and

          g)       note the potential to use one off resources to balance any remaining savings requirement subject to the outcome of the above reviews; and

 (11)   the Council be recommended to give approval to officers being authorised to engage in consultation with employees and trade unions as appropriate and to prepare and issue relevant notifications under Section 188 of the Trade Union Labour Relations (Consolidation) Act 1992 and form HR1 to the Secretary of State.

          (In accordance with Rule 18.5 of the Council and Committee Procedure Rules the following Councillors requested that their votes against resolutions (6) to (10) set out above be recorded, namely:

          Councillors P. Dowd, Fairclough, Maher and Moncur)