Agenda item

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 announcements regarding funding and the postponement of the Fair Funding Review. There are a number of other issues such as Brexit and the Devolution White Paper which add further challenges to financial planning. It was clarified that no indication as yet had been given on the future funding levels for Public Health.

5.8       The Assistant Chief Executive outlined that modelling work is being undertaken to assess the impact of the loss of income and other changes. There is a regular response meeting which examines the impacts of any changes on the Council’s financial position. Any changes will be reported through the quarterly Council Monitoring reports and updates will be made throughout the RPPR process.

5.9       The Committee discussed and agreed to form an RPPR Board to provide comments to Cabinet on the RPPR budget setting process. It was agreed that the membership of the RPPR Board will be Councillors Bob Bowdler, Godfrey Daniel, John Barnes, Chris Dowling, Stephen Shing and Andy Smith.

5.10     The Committee RESOLVED to:

1) To note the difficulties in providing accurate financial estimates for the MTFP at this stage in the RPPR process due to the exceptional circumstances created by a number of factors;

2) Request information on the need for any further savings, and any changes to the existing savings plans; and

3) Form an RPPR Board comprised of the members of the Committee listed in paragraph 5.9 above.