Issue - meetings

Report by the Chief Executive.

22.1     The Chair introduced the report which is the Committee’s opportunity to review it’s input into the RPPR budget setting process for 2021/22 and consider any areas for inclusion in the Committee’s future work programme. The Committee commented that they were happy with scrutiny’s involvement in the RPPR process and went on to discuss elements of the Medium Term Financial Plan (MTFP) and areas for inclusion in the work programme which are summarised below.

Trading Standards

22.2     The Committee discussed the work of the Trading Standards team, and particularly the work to protect vulnerable people from rogue traders and the vital work on scams. It was noted that further savings are planned for the service and the Committee will want to explore the impact of those savings on service provision to ensure the sustainability of the Service.

22.3     The Director of Communities, Economy and Transport (CET) commented on the fantastic work the Team does and the work to protect the vulnerable through the National Scams Team, as well as the work with the Police and other agencies. The Lead Member for Communities and Safety outlined that the Covid19 pandemic had had an impact on the Service and its ability to carry out planned work and generate income. The work of the Trading Standards Team also has a strong relationship with community safety and the Police.

22.4     The Committee agreed to include request for a report on the work of the Trading Standards team in the work programme to examine how services are currently being provided, the impact of proposed savings on the sustainability of the service, and whether it is adequately funded to continue its work to protect the vulnerable and work with partners on community safety.

Access to the Internet and Digital Inclusion

22.5     One of the areas highlighted in the Committee’s comments to Cabinet was the importance of access to the internet and digital inclusion. The Committee noted the good work of the Library Service to provide Covid secure access to the internet, which had provided a vital service for people wishing to apply for jobs or make benefits applications online who do not have internet access. The Committee also noted the importance of completing the work to provide the maximum internet coverage possible through the Superfast Broadband Project and the Council’s support for the Gigabit Broadband Voucher scheme.

22.6     The Lead Member for Communities and Safety assured the Committee that the Library Service would continue the work to support digital inclusion, and outlined the support Library Service staff had given to other departments during the pandemic such as the community hubs, and had ensured the home delivery of library materials for those unable to use the digital library.

22.7     The Committee agreed that it would like a report later in the year to update the Committee on the delivery of the Broadband Project and the role of the Gigabit Voucher scheme in enabling access to broadband services by hard to reach properties and communities.

Government Funding for  ...  view the full minutes text for item 22

Report by the Chief Executive.

13.1     The Assistant Chief Executive introduced the report. He outlined that there was still considerable uncertainty around the Government’s Spending Review which was due to be announced later in the day. It was likely that the Council would not receive full details of the financial settlement of funding from central Government until later in December.

13.2     The Committee discussed the report and commented on several aspects. A summary of the points raised is given below.

Medium Term Financial Plan (MTFP)

13.3     The Committee noted the projected budget deficit of £11.548 million for 2021/22 in the updated MTFP and the scenarios outlined in the report. It asked for further details of some of the larger budget pressures described in the table on pages 39 and 40 of the report namely:

• Looked After Children (LAC) placement costs (MTFP reference Z)
• Adult Social Care (ASC) future demand modelling (MTFP reference AD); and
• Council Tax collection fund deficit (MTFP reference AF)

13.4     The Chief Finance Officer explained that the financial planning process keeps budget pressures under review during the course of the year. Some of the cost pressures identified through the MTFP are related to increased costs due to Covid19. The approach to the current year’s budget (2020/21) is to identify Covid19 costs and non Covid19 costs separately and they will be reported through Council Monitoring reports. It is assumed that the Council will be compensated by central Government for the majority of Covid19 related expenditure. 

13.5     The growth in LAC placement costs reflects the situation that a number of children are being placed in settings due to Covid19 that are more expensive and that this cost pressure will reduce over time. The ASC future demand modelling takes into account an anticipated increase in the percentage of people being discharged from hospital with care needs that will become the responsibility of the Council initially (around 60%). The Council is working with the District and Borough councils to understand the impact on Council Tax collection rates. It is anticipated that there will be a downturn in collection rates as the number of people claiming support increases.

13.6     The Council is seeking financial certainty after the announcement of another one year financial settlement in the Spending Review 2020. The Council would like to see a return to longer term financial settlements where the Government announces revenue funding for three financial years and capital funding for four financial years.

Covid19 costs and current year deficit

13.7     The Committee asked if there was a Covid19 expenditure funding deficit at present. The Chief Finance Officer outlined that around £40 million has been paid so far to the Council in Covid19 expenditure payments from central Government. The Council has also submitted a claim for the loss of fees and charges totalling £1.6 million for the first four months of the year and there will be opportunities to make further claims. It was confirmed that the financial situation is manageable, and any funding deficit will be reported through the quarterly Council  ...  view the full minutes text for item 13

Report by the Chief Executive.

5.1       The Assistant Chief Executive introduced the report. He outlined that the State of the County report in July was a key milestone in setting out the current position, but due to the ongoing financial uncertainty, it has not been possible to articulate a revised Medium Term Financial Plan (MTFP) at that stage. Cabinet will receive a further report on 2 October 2020 updating them on the Council’s financial position and a Whole Council Forum will be held on 28 September 2020. A review of the priority service delivery outcomes and the Core Offer is being undertaken and they will be amended in the light of the response to the Covid19 and the financial uncertainty. Councillors will continue to be kept up to date with the financial position and Scrutiny will have the opportunity to comment on the revised MTFP when becomes available.

5.2       Members of the Committee discussed the financial situation and the challenges for this years RPPR financial planning process. The comments made by the Committee are summarised below.

5.3       The Committee commented that due to the uncertainty around the Council’s finances and the large number of unknown factors it is very difficult for the Scrutiny Committee to contribute to the RPPR process at this stage. It would be helpful for the Committee to know how they can best work with officers over the coming months and to have an indicative timetable of when more detailed financial information is likely to be available.

5.4       The Committee understands that the Council will be compensated by Government for the additional expenditure incurred due to Covid19 and for the loss of income. However, it would like to know if the Council has been fully compensated.

5.5       The existing savings planned for services within the remit of the Committee were noted.  Some Committee members commented that they would not be comfortable with cutting services further at this point in time as Covid19 has made people more dependent on the Council’s services. It would be helpful to know if further savings are required, for example due to loss of income from Council Tax or not being able to deliver existing savings, and the areas of search for any new savings.

5.6       The Committee asked if there is any scope for further efficiency savings to be made by reviewing office accommodation and through office automation with the use of new technology such as Artificial Intelligence (AI). The Chief Operating Officer explained that a review of office accommodation with respect to buildings and office space requirements is underway. The Council has made large savings over the last ten years in back office systems through office automation and consequently there is limited scope to make further savings. A briefing paper or report can be prepared for the Committee outlining the work that has been done in this area.

5.7       It was noted that the lateness of the announcement by Government of the Financial Settlement for local government also presented challenges, together with the speed of other  ...  view the full minutes text for item 5