Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2017/082

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Strategy & Monitoring) Tel: 07584 909518

Report by Director of Finance (CA7).

The report is the second in the series on the Service & Resource Planning process for 2018/19 which will culminate in Council setting a budget for 2018/19 and a medium term financial plan to 2021/22 in February 2018.  The report sets out the:

·      new financial strategy principles;

·      new improvements and investments plus pressures and savings for 2018/19 and the medium term;

·      key announcements of the Autumn Budget announced on 22 November 2017;

·      review of charges for 2018/19; and

·      capital programme portfolios for 2018/19 to 2027/28. 

Cabinet is RECOMMENDED to take the issues set out in the report into consideration in forming their proposed budget for 2018/19, Medium Term Financial Plan to 2021/22 and Capital Programme to 2027/28.

Cabinet considered the second in the series on the Service & Resource Planning process for 2018/19 which will culminate in Council setting a budget for 2018/19 and a medium term financial plan to 2021/22 in February 2018. 

The report set out the:

·      new financial strategy principles;

·      new improvements and investments plus pressures and savings for 2018/19 and the medium term;

·      key announcements of the Autumn Budget announced on 22 November 2017;

·      review of charges for 2018/19; and

·      capital programme portfolios for 2018/19 to 2027/28. 

In addition Cabinet had before them an addenda setting out a change to Section 14 of Annex 2b – Resources – Registration Service – Review of Charges 2018/19.

Councillor Evans, Shadow Cabinet Member for Finance, referred to the continuing difficult financial situation the Council was in and noted that balancing the budget was contingent on reducing the numbers needing the County Council’s help. She queried how realistic this was when the new financial year was only 3 months away. There were plans in place to reduce demand but these will take time to take effect. She was concerned that the Council could find itself in the same position next year but with less reserves having had to use them in 2018/19. Councillor Evans also referred to the changes in adult social care and the impact on users. In another year of financial savings the risks were higher and reserves lower.

Councillor Brighouse, Chairman of Performance Scrutiny Committee thanked Cabinet members and officers for their attendance at the meeting on 14 December which had been a very useful session. The Committee had considered the budget in detail and she highlighted a number of issues raised by it:

·      The Committee had queried whether a greater sum could come from the Transformation Programme. The Committee would be discussing this with PwC.

·      There was concern at the use of reserves.

·      Inflation increases were also a cause for concern.

·      Income generation was seen as a key issue by one member.

·      Issues around the forward plan in relation to forward funding

·      The potential impact of the move to a unitary authority has not been factored in.

In terms of specific services concerns had been raised in respect of children, education and families and adult social care. Of particular concern was the position with regard to home to school transport and special educational need and disability (SEND) issues. On SEND the Committee had recently received a report highlighting some of the issues and she queried whether it was an issue that the County Council needed to be looking to central government for funding.

Councillor Brighouse expressed concern at the reliance on the market in the provision of services to the most vulnerable in society and commented that the Council needed a stake in the provision of these services. With regard to keeping children out of care there was concern expressed about the risks of children being taken into care and that there was a need for tangible support for schools who were at the front line. Finally consideration should be given to the way the Council reacts in terms of its own assets including the workforce, buildings and land.

In response to questions Councillor Brighouse explained that the help needed by schools was to answer their concerns that schools lacked the expertise to judge what help a child needed and whether children’s services intervention was necessary. Councillor Brighouse commented the big issues for the Committee were around changes to adult social care. The impact of changes to the ASC Contributions Policy was of concern, particularly the postcode lottery of the full cost recovery proposals and the scale of impact of DRE changes on most vulnerable). The Committee intended to review this regularly

Councillor Bartholomew responded to the comments made, thanking Councillor Brighouse and Performance Scrutiny Committee for carrying out a thorough review. With regard to the funding of children’s services he agreed that the confidence level that the funding was right was not as high as he would like it to be. Discussions were on going and he expected that the funding for children’s services would increase. The Transformation Programme was in progress and although it could result in more than £15m he preferred to leave it at its current level for the moment. On adult social care there was no postcode lottery with the charges being just a reflection of the costs in the area in which a person lived.

Councillor Bartholomew introduced the report and addenda and in moving the recommendations highlighted the bullet points on page 61 of the agenda pack.

RESOLVED:           to take the issues set out in the report and addenda into consideration in forming their proposed budget for 2018/19, Medium Term Financial Plan to 2021/22 and Capital Programme to 2027/28.