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 Social Care, Health and Safeguarding budget proposals, as outlined in the report, which related to the Social Care, Health and Safeguarding Directorate Budget.

Member Scrutiny

The report was introduced by the Finance Manager, noting that since the report was initially scheduled for consideration, final settlements have been announced.  Members were informed that this and a Joint Select Committee, were opportunities to put forward ideas to alter the proposed budget. Questions were invited as follows:

A Member remarked on the increase to Council Tax of 4.95% and questioned if that proposal would remain as the final settlement was slightly better than expected.   It was confirmed that this was the case to ensure the budget gap did not increase e.g. there was no addition to the settlement to cover the public sector pay increase.

The Chair asked if there was any possibility of exceeding 4.95% and it was responded that there were no proposals to do so.  Elected Members were informed that English counties can set a higher precept as they have an adults’ social care precept specifically for social care but that doesn’t apply in Wales.  It was explained that Council Tax is not the main source of income for the authority and that the bulk comes from the Welsh Government settlement.  The impact of the Police precept was queried but it was confirmed that the authority just collects and pays the precept to the Police and town/community councils. 

It was confirmed that work will now take place to see how the Council can bridge the funding gap; task groups will look at alternatives. The Chair asked when it will be known if and when the gap is fixed. It was confirmed that this information will be available in February.  Members were reminded that 1% increase in Council Tax raises roughly £300,000.

A Member provided information that the final Welsh Government budget will not be finalised until next week so some changes may still occur.  It was queried what impact the pay award would have locally in terms of the fragility of the local independent market.  It was agreed that it is a burden but the increase to the Living Wage is welcomed in the care market as investment is needed to ensure an appropriate workforce. Discussions are in progress about the viability of using accommodation as an incentive to recruitment.  It was also clarified that, in terms of the capital threshold issue, the authority has only 27% of the market as the rest are self-funding or funded through community health care.   The strategy remains to encourage people to stay strong in the community.

A Member expressed concern about the authority’s ability to deal with unforeseen events and requested more information on the approved reserve strategy.  The Officer explained that our reserves are at the minimum Wales Audit Office recommended level and if they are spent, they have to be replenished.  Therefore the money has to be well spent and recoverable for the future.  It was added that there are always in-year demands referring to the forecast reports where overspends are predicted.  These are balanced through underspends in other departments or via reserves.

A Member mentioned proposals to cut buses on a Sunday and expressed concern about the implications for public transport to hospitals and also to the development of the Crick Road facility.  It was accepted that any variation will have an impact and it was agreed to pass the comment to the Head of Service. 

It was commented that this was an opportunity to campaign against transport cuts due to reductions to Welsh Government grants citing the impact on wellbeing of future generations.  It was confirmed that there were proposals for savings to the Adults Services budget for 2018/19 of £638,000 (budget reduction for social care next year within a strategy of practice change) and £536,000 thereafter to the end of the Medium Term Financial Plan.  It was explained that there is no opportunity for income generation.

The Chair stressed the importance of quality impact assessment being added to reports. 

The Chair asked if residents will retain quality of service through the changes.  It was confirmed that this has been a transformation process supported by practice change based on a tiered system of the right support at the right time. This has proved successful due to the integrated platform and good training and staff; quality is not in question.  It was added that the savings targets have been met and there are good quality staff.  Assurances were given that due diligence is carried out before introducing new proposals.