Decision details

The Committee will start looking at departmental portfolio plans and budget setting process for the 2016/17 financial year and beyond.

43.1     The Chair introduced the report and reminded the Committee that this was the Committee’s opportunity to comment on the 2015/16 reconciling policy, performance and resources (RPPR) process. The Committee discussed the RPPR process, the outcomes of the RPPR Board meeting and special Scrutiny Committee meeting held to discuss the Reformulated Supported Bus Network (RSBN).

Reformulated Supported Bus Network (RSBN)

43.2     The Committee thanked Officers for their work on the RSBN proposals, which are part of the medium term financial plan for the department. The commercialisation of some routes was welcomed by the Committee, but it was noted that the consultation had caused some public concern and distress about the potential loss of supported bus routes.

43.3     The Director of Communities, Economy and Transport explained that operators can choose to commercialise routes at any time during the year. The department continues to work towards this goal for as many routes as possible. The tendering process had led to a number of operators choosing to take on previously subsidised routes on a commercial basis.

43.4     It was noted that the Council had consulted on all routes in an open and transparent way, right at the start of the process. Although the commissioning process had been painful at times, it had resulted in a sustainable bus network. The Chair added that the commissioning process was a penetrating way of working out the best way of delivering services against a background of diminishing resources.

43.5     The Director of Communities, Economy and Transport thanked the Committee for their comments about the work of the Public Transport team. The commissioning process is iterative and the team will continue to work to commercialise more supported bus routes as opportunities arise.

Reconciling Policy, Performance and Resources (RPPR) process

43.6     The Committee approved the RPPR process and agreed that there is a need to continue reviewing services to secure sustainable, best value services in the future. The Committee will need to examine a number of aspects of the Department’s remit in the longer term, as the Council starts to look at the next three year budget setting process.

43.7     The Committee shall need to focus on a number of the Department’s activities to understand the cost and values of the various services. This will help the Committee form a picture of what services need to be retained and the projected effects of cuts on residents as they may be applied in the future.

43.8     The Committee considered the merits of reviewing the services provided by the department earlier in the year than has been the case previously. The Director of Communities, Economy and Transport reminded the Committee that the department has a policy framework that determines how the budget is spent and would welcome earlier discussions and input from Scrutiny on the budget. 

43.9     It is likely that the Council as a whole will need to find a further £70 million to £90 million pounds in savings over the next three years. The department does not know the percentage of those savings that it will be required to make, nor the projected outcomes. The Committee shall need to provide input into the following issues:

·        Should the Council be providing this service and at what level?

·        Are the different ways of providing those services?

·        Are there services that the Council should stop providing?

43.10   The department has a robust budget setting and monitoring process for both revenue and capital budgets. The revenue budget is made up of a fair proportion of fixed costs (e.g. staff costs) of which the department has very good understanding. The department has a total net revenue budget of approximately £79 million. The difference between the forecast expenditure and actual expenditure is approximately £60,000, which represents a variance of less than 1% of the total annual budget. For capital projects the department examines the risks involved with a project when formulating a budget, and will use external specialist expertise when necessary for advice on budget formulation.

43.11   The Committee agreed that it would like to hold a further “Away Day” to look at the RPPR issues and discuss the Committee’s work programme before July 2015.  The officers offered to provide input and information as may be required by the Committee at the “Away Day”.

43.12   Some dissatisfaction was expressed in regard to the Council’s “invest to save” and resilience issues. The use of capital funding for schools and other infrastructure and regeneration projects was highlighted.

43.13   The Lead Member for Transport and Environment responded that the Council is adopting a rational approach to investment in East Sussex, particularly through bids made as part of the Local Economic Partnership (LEP). East Sussex has been successful in securing a number of bids and should continue to take advantage of central Government funding to achieve the Council’s strategic plans. The County needs proper infrastructure in order to grow and there is a need to invest in schools.

43.14   RESOLVED: It was resolved to hold a further “Away Day” to look at the RPPR issues and discuss the Committee’s work programme before July 2015.