Agenda item

Context:

·         To highlight the context within which the Medium Term Financial Plan (MTFP) will be developed for 2018/19 to 2021/22.

·         To agree the assumptions to be used to update the MTFP, and provide an early indication of the level of budget savings still to be found.

·         To receive an update with the implications arising out of the provisional settlement announcement of Welsh Government.

·         To consider the 2018/19 budget within the context of the four year Medium Term Financial Plan (MTFP) to be incorporated within the emergent Corporate Plan

·         To receive detailed draft proposals on the budget savings required to meet the gap between available resources and need to spend in 2018/19.

Key Issues:

The Select Committee scrutinised the Enterprise budget proposals, as outlined in the report, which related to the Enterprise Directorate.

Member Scrutiny:

·         The general reserve is made up of the Council fund reserve and school balances, which equates to in the region of £7million.  In addition to this, the Council makes contributions to earmarked reserves for particular purposes.

·         With regard to borrowing, the Authority uses a system called internal borrowing to avoid taking out extra loans that the Authority doesn’t need. The only purpose of borrowing is to afford capital expenditure, which Council agrees annually.

·         With regard to the Revenue Support Grant, it was noted that there is a distribution sub group and the Head of Finance sits on this group. Together with the other 22 authorities, the Group looks to work with Welsh Government and with the Welsh Local Government Authority (WLGA) to try and affect the distribution mechanism for the settlement that the Assembly has to remedy some of the issues.  Rurality and deprivation are some of the issues being raised.  The Authority only receives funding for deprivation in the sum of a few hundred pounds per annum, which does not reflect the pockets of deprivation that the Authority has. In order for the Revenue Support Grant formula to be altered, the 22 local Authorities would have to vote on this matter.  However, it is unlikely that this will occur. Appendix 3 of the report refers to a letter that has been sent to Welsh Government by the Authority regarding the need for a more equitable distribution of the funding formula.

·         Post Brexit, there will be changes.  The money allocated to local authorities to help combat deprivation largely comes from European funding.  This funding will not be available in the future.  Therefore, the Authority will need to be more innovative in future.

·         In response to a question regarding comparing the Authority’s unit costs and performance with those of other Welsh Councils to understand where the greatest opportunity was to make further savings, it was noted that the Authority has to provide certain returns on the same basis as other Welsh Authorities. Monmouthshire’s Unit costs are in the lowest quartile in terms of cost.  Performance is also looked at. Data driven decisions are where Cabinet wants to get to. 

·         Closer scrutiny is welcomed with Members, as well as officers, receiving appropriate training when required.

·         Future Monmouthshire is about the whole Authority working together, understanding the problems that we face and solving them, as an Authority.

·         The new Cabinet report format has now strengthened aspects around options appraisal, evaluation and consultation.

·         A Draft Commercial Strategy is being prepared with a view to the Select Committee having an opportunity to scrutinise the draft strategy in the new year.

·         Staff cuts are being kept to a minimum. Staff are being set broader targets and are expected to contribute some ideas and thinking regarding how the Authority can solve issues affecting the Council.

·         There is resource and good will within the town and community councils.  We need to demonstrate, as a Council, that we are positively engaging with them collaboratively.

·         By looking at the Authority’s procurement procedure, this is an area where the Authority can make savings on spending.

·         In response to a Select Committee Member’s question regarding Council Tax payments being offered over a 12 month period, it was considered that this flexibility already existed.  However, the Assistant Finance Manager stated that he would clarify the position and get back to the Member.

·         The Council Tax proposal is 4.95% in 2018-19 reverting to 3.95% in each of the three subsequent years of MTFP.

·         Robust business plans are required when investing public money with a view to generating income. There is also a need for robust scrutiny in these circumstances.

·         The well-being of staff is important and the Authority has a duty of care to its staff.  A staff survey was carried out earlier in the year which had not raised any significant concerns in terms of well-being of staff.  Sickness and absence projections are indicating an improvement on last year.  However, staff sickness relating to stress and psychological reasons is on the rise.  This highlights the issues that the Authority is working to address.  Health and well-being of staff is a priority for the Authority. Health and well-being events have been held over the County for staff to attend and attendance has been good.