Agenda item

To provide the latest financial monitoring update.

Cabinet Member Councillor Callard and Jonathon Davies introduced the report and answered the members’ questions.

Key points from Members:

·       It was asked whether the Council’s reliance on grants is typical, when compared with other local authorities, and if the committee could be provided with the number of staff who are grant-funded (Action).

·       Concern was raised about the impact of budget cuts and vacancies on existing staff, particularly in health and social care. Members questioned whether additional pressure on staff arising from increased workloads is being monitored and whether the Council is adequately supporting staff.

·       Members asked how we are ensuring that, as vacancies arise, the right people are in the right place, and how we ensure that processes are lean and efficient.

·       The level to which school staff are engaged with and supported with their deficit budgets was explored, and members asked if the results of staff surveys will be shared with council colleagues such that the Committee could be informed in future. It was further asked what messages of support are being given to Headteachers about the future trajectory of school spending.

·       The Chair noted from the Chief Officer response that Covid remained a significant issue in our schools and among teacher and wider staff absence.

·       Members asked about the staff impact of the £1.5m reduction in health and social care, with what impact on service delivery, and how this is managed.

·       Clarity was sought as to whether the £2m shortfall in the budget savings target is in addition to the £4m overspend in core services from the end of last year. It was noted that the £2m was part of the £4m.

·       It was asked if core services continue to overspend at the end of this financial year as is forecast, whether that will add to the £35m shortfall that was forecast in July, and how a forecast overspend will be dealt with as the clear direction in this and earlier reports is that the Council must not use reserves, and the Council cannot borrow to pay for any revenue shortfall. It was confirmed that if that situation arises, the Council would have to use reserves, though the focus was on the current in year shortfall being managed away through targeted budget recovery action.

·       Regarding innovation, clarity was sought as to the extent to which those delivering the services are having an input into where savings can be made.

·       Members asked for clarity about the impact of vacancies, with 3 vacancies in the Decarbonisation team given as an example.

·       On the matter of Council Tax, members asked for more detail about the evidence that premiums are starting to bring properties back into use (Action).

·       The Chair noted the impressive reduction of £820k in energy costs.

·       It was asked how realistic the expectation is of reversing the current overspend trend in social care.

·       Members asked if enough resource is being invested to build resilience and prevent families breaking down, and whether this is an area affected by grants.

·       Clarity was sought about savings in relation to the Home to School Transport policy.

·       It was asked if we are making best use of our staff with consultations, and whether an in-house team could do more of the ground work before a specialist team is used.

·       Members asked about how the overspend in passenger transport is being addressed and why there has been a decrease in income for the solar farm.

·       An answer was sought for the question asked by many residents as to why the authority appears to have financial problems when Council Tax is running between 3-4 times the rate of inflation.

Chair’s Summary:

The Chair thanked the Cabinet Member and officers for the significant discussion that had taken place and moved the report.