Lead Member – Mr Malcolm Pate – Portfolio Holder for Strategy, Financial Strategy, Budget and Business Plan.

Report of the Head of Finance, Governance and Assurance – TO FOLLOW

Contact: James Walton       01743 255001

RESOLVED:

That:

(i)            The latest information on the achievement of 2016/17 Savings proposals as set out in Section 4, be noted;

(ii)          The funding gap identified for 2017/18 of £25.714m growing to £40.946m by 2018/19 after the application of one-off funding estimated to be available, as set out in Section 6, be noted;

(iii)         The current savings proposals identified for 2017/18 and 2018/19 to partially close the funding gap as set out in Appendix 3 and summarised in Table 6, be noted;

(iv)         The Council be recommended to make use of available one-off funding as set out in Table 4 and service savings proposals identified as “Green” and “Amber” totalling £10.578m as listed in Appendix 3;

(v)          The application of one-off funding and Green and Amber rated savings, a funding gap of £17.259m remains in 2017/18, growing to £30.368m in 2018/19, be noted;

(vi)         The work which will be undertaken by a Budget Setting Task Group established by Performance Management Scrutiny Committee and which will feed into the Budget process as set out in Section 8, be noted;

(vii)        To consider and note the latest information on Adults Growth Projections as set out in Section 9 be considered;

(viii)      To note the financial implications of the Digital Transformation Programme including any proposals to replace the existing Adults and Children’s Care IT system which have been reported separately to Cabinet on 27 April and 11 May 2016, and that any final recommendations requiring approval will be reported following the production of a final Business Case to Cabinet and Council, as necessary, within an updated Financial Strategy Report;

(ix)         The Minimum Income Guarantee (MIG) for 2016/17 as set out in the Personal Budget Contribution Policy for non-residential Service Users be increased by 25% for those of pension age in accordance with the increases in the State Retirement Pension and Pension Credit.  This would be more favourable to these citizens than the MIG as set out in the Department of Health Local Authority Circular LAC (DH)(2016) and would equate to a Minimum Income Guarantee of £194.50 a week for a single pensioner and £148.50 for one of a couple;

(x)          The work to be undertaken in order to provide a response to the Government on Multi Year Settlements and Efficiency Plans, be noted; and

(xi)         To note that a policy change will need to be approved by Council to enable new powers to be exercised to utilise capital receipts for revenue purposes as considered in Section 10.

The Portfolio Holder for Strategy, Financial Strategy, Budget and Business Plan presented a report by the Head of Finance, Governance and Assurance which outlined and set out the proposals to close the current funding gap, focussing on the 2017/18 and 2018/19 Financial Years.  This was the first financial strategy report of 2016/17 and reviewed and revised work undertaken throughout 2015/16 to develop the 2017/18 – 2018/19 budget strategy. 

An appendix detailing green and amber rated proposals relating to Public Health was tabled at the meeting.

The Portfolio Holder for Adults proposed an amendment to recommendation 2(I) which would mean that the Minimum Income Guarantee for non-residential Service Users would be increased by 25% for those of pension age in accordance with the increases in the State Retirement Pension and Pension Credit. This would be more favourable to these citizens than the MIG as set out in the Department of Health Local Authority Circular LAC (DH) (2016) and would equate to a Minimum Income Guarantee of £194.50 per week for a single pensioner and £148.50 for one of a couple.

In the ensuing debate, Members welcomed the above amendment, and Group Leaders welcomed the invitation from the Leader to meet during the budget-setting process to discuss ways and ideas to improve the situation.

RESOLVED:

That:

(i)        The latest information on the achievement of 2016/17 Savings proposals as set out in Section 4, be noted;

(ii)       The funding gap identified for 2017/18 of £25.714m growing to £40.946m by 2018/19 after the application of one-off funding estimated to be available, as set out in Section 6, be noted;

(iii)      The current savings proposals identified for 2017/18 and 2018/19 to partially close the funding gap as set out in Appendix 3 and summarised in Table 6, be noted;

(iv)      The Council be recommended to make use of available one-off funding as set out in Table 4 and service savings proposals identified as “Green” and “Amber” totalling £10.578m as listed in Appendix 3;

(v)       The application of one-off funding and Green and Amber rated savings, a funding gap of £17.259m remains in 2017/18, growing to £30.368m in 2018/19, be noted;

(vi)      The work which will be undertaken by a Budget Setting Task Group established by Performance Management Scrutiny Committee and which will feed into the Budget process as set out in Section 8, be noted;

(vii)    To consider and note the latest information on Adults Growth Projections as set out in Section 9 be considered;

(viii)   To note the financial implications of the Digital Transformation Programme including any proposals to replace the existing Adults and Children’s Care IT system which have been reported separately to Cabinet on 27 April and 11 May 2016, and that any final recommendations requiring approval will be reported following the production of a final Business Case to Cabinet and Council, as necessary, within an updated Financial Strategy Report;

(ix)      The Minimum Income Guarantee (MIG) for 2016/17 as set out in the Personal Budget Contribution Policy for non-residential Service Users be increased by 25% for those of pension age in accordance with the increases in the State Retirement Pension and Pension Credit.  This would be more favourable to these citizens than the MIG as set out in the Department of Health Local Authority Circular LAC (DH)(2016) and would equate to a Minimum Income Guarantee of £194.50 a week for a single pensioner and £148.50 for one of a couple;

(x)       The work to be undertaken in order to provide a response to the Government on Multi Year Settlements and Efficiency Plans, be noted; and

(xi)      To note that a policy change will need to be approved by Council to enable new powers to be exercised to utilise capital receipts for revenue purposes as considered in Section 10.