Agenda item

Context:

·         To scrutinise the draft proposals on the budget savings required to meet the gap between available resources and need to spend in 2017/18, for consultation purposes.

·         To scrutinise the 2017/18 budget within the context of the 4 year Medium Term Financial Plan (MTFP) and the emergence of priorities to guide forward activities through Future Monmouthshire.

Key Issues:

The Select Committee scrutinised the Children and Young People Directorate’s budget proposals, as outlined in Appendix 3B of the report, which equated to a saving in the sum of £245,461.

Member Scrutiny:

·         It was considered that there were no significant pressures identified within the Children and Young People Directorate.

·         It was noted that a year ago it had been assumed that there would need to be an increase in Council Tax in the sum of 4.95%.  However, this had been reduced to 3.95%.  It was noted that an increase in the Council Tax to 4.5% would eliminate the budget deficit of £243,000 for the whole Council. 

·         In response to a Select Committee Member’s question regarding external and independent challenge, as outlined in paragraphs 3.8 and 3.9 of the report, it was noted that a company was used that had been engaged via the work undertaken through Future Monmouthshire which helped to outline the 2017/18 budget proposals. Working together, a good piece of work was produced and ensured that the Authority was not missing opportunities going forward. This process helped in identifying work that is likely to come on stream in later years.

·         In response to a Select Committee Member’s question regarding reference to a reduction in expenditure on professional fees, it was noted that this referred to the legal costs associated with some of the processes that are run internally. Officers are looking to ensure that staff have the right skills which will be provided internally.

·         In response to questions raised by a Select Committee Member, the Assistant Head of Finance stated that he would provide the member with a copy of the Treasury Management update which is presented to Audit Committee every six months.  The net borrowing at the end of this year will be in the region of £88,000,000 which is a variety of loans. The Councils collective rate of borrowing is in the region of 4.5%.  However, a number of these loans will be historic in nature and will reflect the fact that interest rates in the past were higher than they are now.  Therefore, the combined rate across the Council is in the region of 4.5%.   Per year, the Authority is paying back £3.4m in principle and £2.9m external interest.

·         The removal of the training budget - It had been considered that the way the training budget was structured in the Directorate could be used more effectively.  Therefore, the budget in the sum of £8000 has been removed. Team budgets within the Directorate will now meet the needs of staff training.

·         Further savings in Support Services can be achieved by bringing these services together to create savings.

·         Early Years Provision saving in the sum of £14,500 – For a period of time there was a double funding arrangement, i.e., funding was received from Welsh Government via a grant. Also, there was funding via the Authority’s base budget.  This money has now been realised and this service will be funded via the Welsh Government Grant.

·         The reduction in the Independent Special Schools Budget in the sum of £50,000 – Through more effective commissioning of places in the independent sector for Monmouthshire’s children with Additional Learning Needs, the Authority will be looking to reduce this budget.

·         There has been a reduction in pupil numbers leading to a saving in the sum of £81,000. The Authority will always work to ensure that every school has the appropriate level of funding for the number of children that it has and appropriate staffing levels.

·         Reduction in the contribution required by the Education Achievement Service (EAS) in the sum of £13,500 – This came about through discussions with the EAS Board. The EAS recognised that it could reduce its central running costs.  This will not have a detrimental effect on schools in that, if a school moves into deficit, the Authority’s finance team will provide support via the implementation of recovery plans.

·         In response to a Select Committee Member’s question regarding schools that increase their numbers of pupils on roll, it was noted that the £81 000 is a reduction in the quantum that goes into the formula.

·         The extent of the 21^st Century Schools Programme represents a significant investment and the Authority is aware that this programme needs to be delivered on time and within budget. The benefits to the children with regard to this investment will be seen in due course.

·         The Authority has been better funded this year than expected and even within this better settlement, the Authority has only been able to flat line monies to schools.  That means that if there were to be a worse settlement next year, it is incumbent on the Authority to take the leadership role with Monmouthshire’s schools to ensure that they understand where their costs are and how best they may be minimised across all of the school system to ensure that they are able to deliver the level of teaching and learning that the Authority expects.

·         It is anticipated that the Authority will have to find different ways to work with regard to schools and be ready to work more collaboratively in the future.

·         The Mounton House restructure refers to the catering staff which are employed by the catering unit and not the school.  This matter refers to how meals are provided.

·         In response to a Select Committee Member’s question, it was noted that under the three year delivering excellence plan, the Children’s Social Services Section was looking to achieve an appropriate staffing structure, reducing the use of agency staff, improving service offers and reducing reliance on external placements. Therefore, bringing Children’s Services to function within its means. 

·         All of the savings proposals for Social Care and Health are centred on Adults Services.  With regard to Children’s Services, 2017/18 will be a time in which to consolidate and take stock.  Budgets are being re-aligned in line with the three year delivery excellence plan.

·         It was acknowledged that pressures bring uncertainty and it is true to say that throughout the Authority stress related illness is increasing. The ongoing situation is challenging for all settings. Therefore, the Authority is working with schools in a positive, proactive way to help them minimise the impact on their teaching staff.