Agenda item

Scrutiny of the 2020/21 draft Capital and Revenue proposals for 2020/21 within the context of the 4-year Medium Term Financial Plan.

Refer to the link below for details – Cabinet Agenda 20^th December 2019:

·         Draft Capital Budget Proposals 2020/21 to 2023/24.

·         Draft Revenue Budget Proposals 2020/21.

https://democracy.monmouthshire.gov.uk/ieListDocuments.aspx?CId=144&MId=4192

Draft Capital and Revenue Proposals for 2020-21

Officers explained that having talked extensively about the pressure points at month 7 which have been at the forefront of the budget challenge, paragraph 3.4 of the report shows pressures of £9.7 million, which is unprecedented. They explained that it had been very difficult bring forward a set of coherent proposals to consult upon and that all the feedback would need to be taken into account for Cabinet to consider on 19^th February prior to Council on the 5^th march.  Officers drew attention to paragraph 3.7 which presented the draft proposals and asked members for their views. Assumptions had been made that funding from Welsh Government would fund teachers’ pay award and also that pensions would be fully funded.   They reiterated that the ability to use capital receipts to assist the revenue budget will be helpful.  Fees and charges had also been explored and the proposal for a 2% saving could potentially be made to Individual Schools Budget as a last resort. Officers explained that council tax had been modelled at a prudent level.

Challenge:

·         You have referred in paragraph 3.5 to the pressures and in paragraph 3.18, you broke it down further. Where have these pressures come from over the last 12 months. Were they always there, or has there been a spike?

Children’s services has seen an unprecedented rise in the number of looked after children cases and we are unsure why, but there are a number of potential reasons.   We have become more successful in preventative activity and there is also more focus on the judiciary side in terms of views taken by courts on the need for corporate parental responsibility. This has brought significant cost but is a very necessary endeavour. In terms of children with additional learning needs, more assessment has led to more support being identified as needed at the acute end, in terms of out of county placements. In terms of adult’s social care, the situation has only become more acute in recent months.  Adults with disabilities are living longer and their parents are aging and are unable to look after them and this is a national dynamic.

·         Is there a need for concern about the costs associated with new school curriculum? Has this been identified in your discussions with schools, particularly in respect of the 2% saving on Individual Schools Budgets?

We have held meetings with head teachers and consultation events and discussions with the schools’ budget forum and feedback is coming through. We understand that schools have pressures and that is the rationale for the loan mechanism that enables schools up to 10 years to apply their budget recovery plans to bring their budgets out of a deficit position.   There is no appetite for us to impose a 2% reduction on schools, but the financial pressures upon the council are so significant that we have to consider it.  If we obtain any additional funding, we will look to reduce it or remove it.

·         Are other councils in the same position as us?

Some councils are disadvantaged by the funding formula.  We feel Monmouthshire is particularly disadvantaged and we are having discussions nationally about what we feel is the funding flaw.  It this was addressed, five local authorities would benefit and it wouldn’t cost Welsh Government much, but would offer us an extra £1 million.

Chairs conclusion: 

The committee has discussed reasons for the significant pressures in social services, acknowledging this is outside of our remit but we have done so in order to understand the context for the budget proposals being presented to us.  We have scrutinised the proposals within our remit, but have no specific recommendations.  We support the request made by Monmouthshire to Welsh Government for a funding floor and the need for an independent review, noting that a seminar will be held in the spring. The committee has not discussed the operations proposals which were presented late to us, but we have agreed to attend the Economy and Development Select Committee to undertake joint scrutiny of these.