We
received a report from the Head of Finance in which Select
Committee Members were provided with detailed draft proposals on
the budget savings required to meet the gap between available
resources and need to spend in 2016/17.
Report explains background for budget proposals of 2016/17 and
the period of consultation runs up to end of November. Mandates are work in progress, the report provided an opportunity for
members, staff and public to influence what goes in to final
proposals.
Headlines identified:
- MTFP gap over £11 million over 4 years, based on
assumptions and pressures in report.
- Report focuses on next years budget
2016/17 position, £3 million gap.
£844,000 already identified as savings, but there are still
savings.
- It’s about understanding context and issues surrounding it
and to welcome alternative ideas to meet the gap.
Committee scrutiny:
- Concerns were expressed that there would be less cash for
schools. This was as a result of cash
flat line and inflation was not in the model.
We
resolved to receive the report and noted its content.
3.
SERVICE AREA BUDGET MANDATES
We
welcomed Officers who presented the budget mandates and we heard
the proposals before the Committee were invited to ask
questions.
During discussion the following points were noted:
i)
Mandate B1 - Assess the feasibility to establish
a Not for Profit Service Delivery Model
- Purpose
of mandate is so that select committee members are presented with
relevant budget aspects, within the remit of the Children and Young
People select committee.
- Outline
problem that will be addressed through the mandate, trying to
sustain access to locally significant services, this is a priority
of the organisation.
- Targeted
reduced services, huge scope to integrate an offer which is
growing.
- There is
a need for income generation and using assets to make
money
- Return on
investment generated by visitor economies and main part is that a
lot of time spent with front line and staff are stretched
beyond. Massive income targets which
have been increased year on year, based on facilities and capital
investment we have saturated markets.
Need to change format and current restraints on way of
working.
- Future
options approach to bring services together in a more effective
way.
Member
scrutiny:
- A member
queried whether schools would be subjected to a form of charge for
using leisure facilities and members were mindful that charges
should not be significantly increased as to dissuade customers from
using facilities. We were informed that
partnerships between schools and leisure facilities had to be
developed, this involved appropriate dialogue with stakeholders and
ensuring correct agreements were in place.
- There was
a need for market forces to be considered, this was to ensure that
prices were not excessively increased to dissolve market
competitiveness.
- Members
were reminded that it was imperative to make a change, as there
were significant risks to the services as a result of doing
nothing.
- Options
for alternatives were provided, which included not for profit
companies, commercial opportunities, leisure and school budget
combined.
- The first
cohort would be undertaken and if there were successes then
introduction of other services would follow.
- Clarification was requested regarding acronyms. The term ‘TECKAL’ was defined as not
having to go through EU procurement processes for a company to
delivery services.
- In
response to a question regarding outdoor education, we were advised
that outdoor education has undergone review, which is near to
completion and would contribute to new vehicle going
forward. Subsidy levels are
questionable but moving forward, adult market and commercial
opportunities are ones to focus on.
There are very different offerings on each site, multitude of
opportunities.
- Outdoor
education needs to be about the mass market, and support museums,
youth service etc. the services make a massive contribution in
terms of wellbeing.
- We
discussed the possibility of collaborative working with other
authorities for outdoor sites, which included specialised
activities and income generation.
- A
question was raised in relation to how accountability and scrutiny
would work, particularly where some areas were statutory and not
discretionary. We welcomed further
discussions and clarity to look at accountability and scrutiny, for
example, if youth is not part of directorate but part of new
company. It was important for good
scrutiny and governance arrangements to be in place at the
outset.
- Officers
confirmed that it was anticipated services would become more
accountable as there would be a need to prove outcomes and
achievements.
- Services
were well known and recognised within the authority, there were no
apparent concerns of services losing identity and autonomy through
change. Officers welcomed services
being developed and opportunities to access resources, which would
ordinarily not be available within a smaller
service/organisation.
ii)
Mandate B20 – Review of service provision
for children with special education needs with the
authority
- County
Councillor R. Harris left the meeting during discussion of this
item.
- Process
was to reform ALN provision across the authority. Two stages of ALN had been undertaken, the purpose of the mandate is for Deri
View to be considered and to consult on closure of 24 place
facility.
- Service
provisions were considered and Deri View usage had reduced
significantly.
- Reasons
for closure had been supported by parents of children, with mild to
moderate needs, which could be incorporated into mainstream school
provision.
Member
scrutiny:
- The
committee wanted to be reassured that there was confidence in
proposals being cost effective. In response, we were advised that
the proposals were based on needs of children in
Monmouthshire. ALN had not been
reviewed for a number of years and there was a need to meet
requirements, through improved adaptation and change.
- As part
of the 21st Century Schools project, the Cabinet Member
confirmed ALN facilities would be included within the four
comprehensive schools. The review
included regional provisions, which would ensure that provision was
replicated in the North and South of the county.
- In terms
of costs associated for redundancy, considerations would be given
so that these were minimised as much as possible, they would be
achieved through the current £300k allocated to all schools
to support redundancy costs.
- The
authority had a responsibility to redeploy employees where
possible. The authority were charged with supporting schools and
cross directorate work was a factor.
- In
relation to concerns expressed regarding cost of floor space, the
Chief Officer reiterated that as part of the ongoing strategic
review of education, a fundamental part was looking at estate and
where there are surplus. The Welsh
Government requirement for this aspect to be considered was also
being addressed.
- The
process of consultation would commence, with the needs of the
children at the centre and will work with school to make transition
as smooth as possible. Work would be
undertaken with parents to ensure most suitable timescales were
used.
iii)
Mandate B23 – Discretionary Fees and
Charges Review
·
Feedback from previous consultation with public,
prefer charges to be increased than services cut. Therefore, required to look at discretionary fees
and charges.
·
Already 2.5% increase assumed in budget model, this
increased up to 10%. Cabinet agreed
income generation strategy, being more innovative but will take
time for fruition.
·
Schedule to mandate gives all fees and charges, as
well as a target figure. Services areas
will consider how this will impact and how it will be
delivered.
·
Flexibility for services to look within 10%
increase.
·
Some of the services are within remit of this Select
committee.
·
The Cabinet member advised that it was not
anticipated for school meals to be increased by 10%. Possibility of looking at increased adult
meals, or work within school meals to
assist with functions so that an income stream could be
generated. Welcome select committee
views.
Member
scrutiny:
·
The Cabinet member advised that officers had
provided detailed information in earlier agenda item. It was made clear that it was in mind of officers
that there was a point that increased point couldn’t go
beyond. It is not a proposal for prices
to be increased to 10%, it shows
potential of what could be achieved.
·
In response to a request for clarification regarding
SLA arrangements between leisure and schools, we noted that these
were in place with primary schools for swimming, but not for
secondary.
·
A member highlighted that the figures should be
included and form part of public consultation. The Cabinet member
confirmed that this would be considered and discussed with public
and consultation/engagement sessions.
·
General concern expressed by committee, that members
would be strongly dismayed if cumulative effect would bring
disadvantages to children and their parents.
·
Chair agreed that there were specific areas which
would affect children and young people.
Committee’s
Conclusion:
Chair’s
Summary:
Thanks to Joy and team for
production, for officers and Cabinet members.
Understand difficulty of remit,
not easy to cut for income generation and budget.
Overall committee agree
mandates in principle, but would like issues discussed to be
considered and the effects they have on children and young people
(school meals, outdoor education, activities outside
schools).
Committee concern scrutiny of
new models is sufficient to ensure accountability. Do not want to lose sight of outcomes and
achievements in future.
Welcomed future items to be
considered by the committee, strategic review of schools,
Mounton House and charges.
The next meeting would be held
on 2nd November 2015 at 2.00pm, items included EAS and safeguarding
prior to Estyn visit.
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