Agenda item

The Committee received a report of the Director of Law and Democratic Services, providing members with the opportunity to better understand the strategic context and framing for the direction of travel of the organisation to deliver the Vision for Swindon over the next four years.  This was within the expected financial context, and the particular processes the Council had adopted to ensure a balanced budget for 2016-17 and a sustainable financial position moving forward.

At the Chair’s request the Committee also had copies of the Budget Diversity Impact Assessments (DIA’s), which were circulated at the meeting. Members raised concerns about the lack of time to adequately digest the information contained in the DIA’s, but agreed to proceed with this part of the meeting as they accepted that written responses could be given where the answers were not readily available.

The Chair welcomed David Renard, Leader of the Council and Chair of Cabinet, and the Board Director Resources to the meeting who responded to the following observations and questions from the Scrutiny Committee:

·        The effect on the Council of using the New Homes Bonus as a source of base budget funding

·        The level of New Homes Bonus to be used for base budget funding in 2016/17

·        The future use and ownership issues of community assets for example Sure Start children’s centres and the need to inform ward councillors of any alterations to leases.

·        The consultation exercise undertaken in relation to those vulnerable groups that utilised children’s centres and the need to scrutinise the outcomes.

·        The role of inflation within the forecast funding position for the Council between 2016 and 2020.

·        The support being offered to vulnerable families who find it difficult to access support and funding.  

·        The percentage of vulnerable families with children not using existing children’s centres.

·        The commitment to deliver highway projects already approved and committed through the Localities Fund by 31^st March 2016 and the return of unallocated Localities Highway Fund to the Highways Capital Programme by 31^st March 2016.

·        Questions about the new approach and arrangements for Community Grants.

·        Support for an increase of a further 2% in Council tax to fund shortfalls in social care budgets.

·        The need to identify alternative options for increasing and decreasing proposed Council tax levels.

·        The need to maximise capital receipts from the disposal of Council assets and securing revenue income streams through taking a more pro-active role in local development initiatives.

·        Concerns in relation to the predicted funding gap and the potential to reduce this gap through the realisation of new income streams.

·        The training and support that would be offered to Parish Council staff following the transfer of services from the Council to ensure they understood the technicalities of the services and had the business support to manage these in the future.

·        The financial consequences for this Council of Parish Councils not agreeing to the transfer of certain services and how the shortfall in transfers would be managed.

·        The perceived discrepancies between the relationship of the number of new Band D equivalent properties and the forecast for the Council’s Council Tax Base growth.

·        Concern about the potentially fractured delivery of services by Parish Councils.

·        The number of adult health assessments being carried out and the potential effect on Council budgets.

The Committee also considered a motion put by Councillor Moffatt inviting the Leader of the Council to seek the Governments views as to how the Council should maintain its statutory duties taking into account the current and future budgetary pressures. The motion was not passed; however the Leader of the Council explained that this was a discussion being held by the Local Government Association (LGA) and he would endeavour to provide feedback to the Scrutiny Committee from the LGA discussions.   

The Chair thanked the Leader of the Council for attending the meeting in the absence of the Cabinet Member for Finance, People and Performance, and also the Director of Resources and Director of Commissioning, and for their full and open responses to members questions and observations on the issues raised.

Resolved –

(1)  That the Budget Position Update report be noted.

(2)  That the Cabinet be recommended to consider the following comments in relation to the Budget setting process 2016/17:

a.    That recognition of the new health demand change from acute to prevention to facilitate budget saving initiatives be continued.

b.    That Swindon’s economic development, the Council’s savings proposals and the identification of new forms of revenue streams be supported.

c.    That highway projects already approved and committed through the Localities Fund by 31^st March 2016 be ring-fenced.

d.    That the Director of Law and Democratic Services include the review of the delegation of Locality Community Grants within the future review of the Scheme of Delegation to keep current funding in 2016.