Agenda item

Report of the Head of Corporate Resources

The Cabinet considered the report of the Head of Corporate Resources which provided an assessment of the robustness of the estimates and the tax setting calculations, the adequacy of the proposed financial reserves and the production of longer term revenue and capital plans, based on the proposals set out in the report on the Revenue and Capital Budget Plan 2019/20 and approach to Financial Strategy 2020/21 to 2022/23 (Minute No. 100 refers) and to be presented to the Budget Council meeting on 28 February 2019.

The Head of Corporate Resources indicated that the following features had been considered and were detailed in the report:

·       The engagement of Members and Officers in the delivery of a balanced budget;

·       The Council had set a three-year budget plan in 2017/18 and the Council was about to enter the third year of that plan. This had enabled a sustainable budget plan to be delivered;

·       The Council was experiencing significant budget pressures and had developed a remedial plan following a mid-year review of the Medium Term Financial Plan;

·       The Council was giving increased emphasis in the proposed budget for 2019/20 on ensuring that the key services of adult social care, children’s social care, schools and families, and locality services start the year with an appropriate budget to meet current demand;

·       The provision of a £1m Budget Pressure Fund had been made in the proposed budget for 2019/20;

·       The budget pressures bring risks which need to be managed in the delivery of core services;

·       There is a lack of certainty on the provision of funding for adults and children’s social care, and schools and families

·       The Council has a track record of delivering a sustainable budget, it will continue to review budget expenditure every quarter and deliver services in line with the Corporate Performance Framework,

·       The Council will need to start work on the development of a new three-year budget plan from 2020/21 to 2022/23 and it was currently predicted that there would be a shortfall of £45m which will need to be managed; and

·       As a result of all the issues contained in the report, it is the view that the proposed budget for 2019/20 is a robust budget package.

Members of the Cabinet expressed concern about the absence of any sustainable long-term funding solutions being made available from Central Government in relation to adults and children’s social care, and schools and families and that the one-off short-term funding options had failed to meet the resources required. As a result, there had been an increase in the number of people requiring care provision and this was causing more problems for families and increased pressures for local authorities. Concern was also raised that the results of the Fair Funding Review were still awaited and that the Government had still not published a Green Paper on Adult Social Care.

Cabinet Members expressed concern that the Council would need to address a further estimated budget shortfall of £45m during the period from 2020/21 to 2022/23 in addition to the budget savings of £233m already made since 2010 and they commended the officers for the delivery of those savings made.

Decision Made:

That the Council be requested to have regard to the matters raised in the report during the final stages of determination of the Budget for 2019/20.

Reasons for Decision:

The Local Government Act 2003, (section 25 as amended) requires the Chief Financial Officer to report formally on the issues contained within the report.

Alternative Options Considered and Rejected:

None.