To consider the Financial Strategy (Report made to Cabinet 28 October 2015 attached) to gain an understanding of the challenges it addresses, the content and framework for the next five years, and identify how the Committee can take part in and enable engagement with how the Council evolves. 

The Performance Manager stated that the Financial Strategy Report had been considered by Cabinet at its meeting on 28^th October 2015.  He continued that the Financial Strategy set out the plan of action for the next 5 years and contained a clear view of the challenges that were likely to be encountered due to changes in funding methods, whilst recognising that expected changes were still not fully detailed in both the short and medium term.  He added that the Council was also about to launch the ‘Big Conversation’ to communicate the changes and challenges and to identify what aspects of the Council’s work that communities feel they were prepared to take on or were prepared to lose.  The Performance Manager continued that it was expected that the Financial Strategy would provide the framework for the Committee’s future Work Programme.

The Commissioning Director continued that the Cabinet report set the scene for the next 5 years but work on the details of the plan was still underway, some of which would come forward in the next paper going to Cabinet on 9^th December 2015.  He continued that a lot of work was required to enable to the Council to achieve its net operating budget in 2020. 

A Member requested that the Big Conversation was publicised in a simple way and needed to include information on what the Council had already achieved. 

A Member expressed concern that diminishing budgets would impact on the infrastructure of the County at a time when the County needed to attract more businesses as it was to be reliant on the Business Rates they generated for its income as other sources of income ended.

A Member asked whether the Council had a strategy to address this.  The Chairman responded that Members of the Committee had been closely involved in the redesign process of the Economic Growth Section and identified the importance of providing the conditioning to enable businesses to growth and flourish within the County. 

The Portfolio Holder for Regulatory Services, Housing and Commissioning commented that the situation was fluid and he hoped that more would be known once the Autumn Statement had been published.  The Deputy Leader added that the LEP were actively working on infrastructure improvement projects.  Bids were being prepared in advance to enable European funding to be applied for as soon as it was announced. 

In response to a query regarding small business rates, the Commissioning Director replied that the Council would retain its authority to reduce Business Rates but it could not increase them.  He anticipated that Small Business Rate Relief would remain. 

Members discussed the problems caused by Shropshire being an attractive County to retire to and the impact this had on the adult social care budget.  The Chairman reminded Members that this was not within the remit of this Scrutiny Committee. 

Member commented that many members of the public were unaware of the full range of services provided by the Council, it was suggested that a full list should be provided as part of the Big Conversation information.  The Performance Manager explained that 150 functions had been identified, these had been distilled down to 46 and then again to 12 descriptions.  The website would allow people to see all the functions of the Council.  The Performance Manager explained that in the first instance information would be gathered through asking the public to complete a questionnaire which was in the design process at the moment.  In January and February workshops and focus groups would be held to extrapolate further information.  The first phase of information gathering would be completed by the end of March 2016, but this was planned as an ongoing process. 

A Member suggested that the questionnaire should be despatched with Council Tax and Business Rate demands.  It was agreed that this could be considered but had been discounted previously as it would only be seen by the head of the household.

The Lib Dems Group Leader expressed disappointment that he had not been involved in the formulation of the Questionnaire, this was echoed by the Leader of the Independent Group.  The Deputy Leader confirmed that Cabinet had not been involved either and he would enquire if the other Group Leaders could comment on the questionnaire with Cabinet before its distribution.  Members observed that lessons could be learnt from a recent Fire Authority consultation.

In response to a Member’s question regarding preparation being undertaken for changes in the funding structures, the Deputy Leader explained that a great deal was happening with Economic Development.  He cited examples of the Growth Hub opening in Shrewsbury, ongoing work with developers to attract businesses to the County, the establishment of the Enterprize Zone in Oswestry which had received National Government funding, LEP applications for European funding.  He continued that Shropshire was ideally situated between the Northern and Midland Powerhouses and he felt that the County was more than capable of holding its own.

A Member reiterated the earlier request for Shropshire Council to invest in the mobile signal network and to make further headway with improving Broadband provision.  The Deputy Leader commented that the Broadband project was progressing well and was currently waiting for the European Parliament to agree to further state aid.

RESOLVED:

That the Financial Strategy be noted. 

It was recommended that Group Leaders be included in the consultation on the questions to be used for the Big Conversation Questionnaire.