Further to the meetings of the Cabinet held on 13 September, 11 October and 8 November 2012, the Council considered the report of the Head of Transformation Services and the Head of Corporate Finance and ICT which provided details of a package of budget savings proposals to enable the Council to achieve the current budget savings of £43.7 million for the period 2013/14 to 2014/15.
The report contained the following annexes:
Annex A – Work Programme Timetable
Annex B – Business efficiencies on which approval to progress immediately was sought
Annex C – Internal consultation proposals on which approval to progress immediately was sought
Annex D – Integration proposals on which approval to progress immediately was sought
Annex E – External consultation (information) proposals on which approval to progress as described was sought
This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.
The Leader of the Council, Councillor P. Dowd referred to the current budget savings of £43.7m which had to be achieved for the period 2013/14 to 2014/15 and indicated that the Government was due to announce the Local Government Settlement for 2013/14 in December 2012 and the confirmation of the external revenue support from the Government would provide greater clarity of the Council’s saving requirement for 2013/14.
It was moved by Councillor P. Dowd, seconded by Councillor Maher:
1) the work programme timetable contained in Annex A of the report be noted;
Annex B – Business efficiencies on which approval to progress immediately was sought
2) approval be given to the budget reductions, increased income targets and adjustments to the Medium Term Finances Plan as outlined in Annex B of the report and Officers be authorised to continue with engagement and implementation processes with partners, key stakeholders, employees and Trade Unions as appropriate with a view to achieving the agreed changes at the earliest opportunity;
Annex C – Internal consultation proposals on which approval to progress immediately was sought
3) approval be given to the proposals as described in Annex C of the report;
Annex D – Integration proposals on which approval to progress immediately was sought
4) approval be given to the proposals as described in Annex D of the report;
Annex E – External consultation (information) proposals on which approval to progress as described was sought
5) approval be given to the proposals as described in Annex E of the report;
6) it be noted that the risks and mitigating actions outlined in Annexes C, D and E of the report had been taken into account;
7) it be noted that where changes and/or savings cannot be achieved through deletion of vacant posts, Voluntary Redundancy or Voluntary Early Retirement then there may be a need for compulsory redundancies arising from a number of proposals outlined in the report that are subject to normal procedures; and
8) it be noted that the Cabinet had been made aware of the need to notify the Department of Business Innovation and Skills and Trade Unions to comply with statutory requirements regarding redundancies.
An amendment was moved by Councillor Booth, seconded by Councillor Brodie - Browne that resolution (5) of the Motion be amended to read as follows:
“approval be given to the proposals as described in Annex E of the report, subject to:
(a) the deferral of Option F1.2 (Grounds Maintenance – Recharging grounds maintenance / utility costs for adult football/sports users / bowlers) until the consultation process on Option F1.3 (Grounds Maintenance - Recharging grounds maintenance / utility costs for organised junior sports activities) is concluded and a report is submitted to the Council on the progress made by the Sefton Sports Connect Group; and
(b) the deferral of Option F1.4 (Cemeteries and Crematoria – Increase Burial and Cremation Charges) until further consultation can take place.”
Councillor P. Dowd indicated that he accepted the amendment.
On a show of hands, the Mayor declared that the revised Motion was carried by 52 votes in support of the Motion and none against, with 12 abstentions and it was
RESOLVED: That
1) the work programme timetable contained in Annex A of the report be noted;
Annex B – Business efficiencies on which approval to progress immediately was sought
2) approval be given to the budget reductions, increased income targets and adjustments to the Medium Term Finances Plan as outlined in Annex B of the report and Officers be authorised to continue with engagement and implementation processes with partners, key stakeholders, employees and Trade Unions as appropriate with a view to achieving the agreed changes at the earliest opportunity;
Annex C – Internal consultation proposals on which approval to progress immediately was sought
3) approval be given to the proposals as described in Annex C of the report;
Annex D – Integration proposals on which approval to progress immediately was sought
4) approval be given to the proposals as described in Annex D of the report;
Annex E – External consultation (information) proposals on which approval to progress as described was sought
5) approval be given to the proposals as described in Annex E of the report subject to:
(a) the deferral of Option F1.2 (Grounds Maintenance – Recharging grounds maintenance / utility costs for adult football/sports users /bowlers) until the consultation process on Option F1.3 (Grounds Maintenance - Recharging grounds maintenance / utility costs for organised junior sports activities) is concluded and a report is submitted to the Council on the progress made by the Sefton Sports Connect Group; and
(b) the deferral of Option F1.4 (Cemeteries and Crematoria – Increase Burial and Cremation Charges) until further consultation can take place.
6) it be noted that the risks and mitigating actions outlined in Annexes C, D and E of the report had been taken into account;
7) it be noted that where changes and/or savings cannot be achieved through deletion of vacant posts, Voluntary Redundancy or Voluntary Early Retirement then there may be a need for compulsory redundancies arising from a number of proposals outlined in the report that are subject to normal procedures; and
8) it be noted that the Cabinet had been made aware of the need to notify the Department of Business Innovation and Skills and Trade Unions to comply with statutory requirements regarding redundancies
Further to Minute No. 54 of the meeting held on 13 September 2012, the Cabinet considered the joint report of the Head of Corporate Finance and ICT and the Head of Transformation which provided details of the progress made on the reviews of service and consultation processes being undertaken in order to move towards the achievement of a balanced budget in 2013/14 and 2014/15.
The report also set out a further package of savings proposals relating to internal consultation options, on which the first stage consultation is considered to be complete and requested the Cabinet to make an appropriate recommendation to the Council.
Councillor Dowd referred to the on-going discussions with the Trade Unions regarding the savings options within Corporate Support Services.
Councillor Moncur raised the following question on the issue referred to in the report and the Strategic Director - People responded to the issue as referred to below:-
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Question: |
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Given the earlier comments relating to Children’s Social Care savings on the previous agenda item there is a change option on Page 41 for a saving of £1m by reviewing commissioning of all residential beds for children. This is a significant figure and I wonder if I could have some further explanation of the feasibility of this change option.
Response: I refer to the earlier response on agenda item 5, in which I outlined the increased demand, the importance of being more cost effective and the need to produce better outcomes. The Fostering Strategy as approved by Cabinet had been implemented and this was enabling more family placements for those children and young people in care. There are three key elements in relation to cost to Children’s Social Care. These are the number of young people in care; where they were placed – whether it be in Borough fostering care, independent fostering care placements or Residential Homes; and how long they were in care for. I would refer once again to the Turning the Taps Strategy and the focus on better outcomes with regard to the Authority seeking to place the right child in the right place at the right time for the right cost.
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This was a Key Decision and was included in the Council’s Forward Plan of Key Decisions.
Decisions Made:
(1) the work programme timetable contained in Annex A of the report be noted;
(2) it be noted that consultation in respect of terms and conditions issues had been commenced with the Trade Unions;
(3) it be noted that the first stage of consultation on the change proposals set out in Annex B of the report, is considered to be complete;
(4) the Council at its meeting on 22 November 2012 be recommended to give approval to the change proposals set out in Annex B of the report and Officers be authorised to prepare for implementation immediately, pending the final decisions of Council, including the issue of relevant statutory and contractual notifications, if appropriate to achieve change;
(5) it be noted that Officers will comply with Human Resource policies and procedures and this would include regular Human Resources monitoring reports to the Cabinet Member – Corporate Services and Performance; and
(6) it be noted that the risks and mitigating actions identified in Annex B of the report had been taken into account during the consideration of recommendations to Council.
Reasons for Decisions:
The Council continues to forecast a significant budget gap over the period 2013-2015 requiring estimated savings of £43.7m. Additional budget savings and options would need to be identified over the coming months to ensure that future years’ budgets can be balanced. It is a legal requirement to set a balanced budget and to ensure the medium term financial position is robust.
Early consideration of budget options continued to be essential as this would lead to informed decision making, including the consideration of the outcome of any consultations undertaken, the impact of any decisions to be made and any steps that can be taken to mitigate the impact of a decision.
Alternative Options Considered and Rejected:
Additional budget savings and options would need to be identified over the coming months to ensure that future years’ budgets can be balanced. It is a legal requirement to set a balanced budget and to ensure the medium term financial position is robust.