The Corporate Policy Development and Scrutiny Panel met on Tuesday 17 September 2024 to discuss the council's financial strategy and receive an update from the Cabinet Member for Resources. The panel reviewed the 2025/26 Medium Term Financial Strategy, which outlines the council's financial challenges and priorities for the next five years, and noted the future workplan.

2025/26 Medium Term Financial Strategy

The panel discussed the council's financial outlook for the next five years, as detailed in the 2025/26 Medium Term Financial Strategy. Councillor Mark Elliott, Cabinet Member for Resources, introduced the strategy, highlighting that it is a holding pattern pending the Chancellor's statement in October. The strategy anticipates a need to find up to £28.60 million in savings over the next five years, assuming Council Tax increases are capped at 3.99% annually.

Key challenges identified include sustained inflation, higher interest rates impacting running costs and supply chains, and increasing demand for essential social care services, particularly for Children's Services. The report indicates a projected overspend of £2.47 million in Children's Services due to demand-led placement and package costs. Adult Social Care also faces pressures from increasing demand, complexity of need, and market stability issues.

The strategy assumes a continuation of current government funding levels, with potential readjustments following the Chancellor's budget statement and the provisional local government settlement in December. The council plans to address the funding gap through a combination of savings and income generation, with proposals detailed in Appendix 2i - 2025-26 - 2027-28 Savings and Income Proposals. These include measures such as reviewing care packages, centralising facilities management, and increasing income from parking services.

Councillor Ian Halsall questioned the realism of budgets set by Corporate Estate and Waste Management departments, to which Councillor Elliott explained it was an exercise to gain better visibility on departmental needs. The Executive Director (Operations) noted underlying pressures in Waste Services, including staff costs and sickness pay, and that budgets were very lean. The Executive Director (Sustainable Communities) highlighted issues with the Corporate Estate, such as the cost of empty assets like Culverhay, lost income, and challenges in making anticipated savings.

Councillor Robin Moss raised concerns about the Guildhall market roof window that had fallen that afternoon, noting that stallholders had expressed concerns about similar windows. The Executive Director stated it would be repaired swiftly, adding that regular assessments were conducted to prioritise repairs across the estate.

The strategy also outlines the council's capital programme, with significant investment planned across various portfolios, including Resources, Economic and Cultural Sustainable Development, and Highways. The capital programme is guided by the Prudential Code, ensuring affordability, prudence, and sustainability.

Cabinet Member Update

Councillor Mark Elliott, Cabinet Member for Resources, provided an update on the council's financial focus, which is currently on areas predicted to be over budget: Corporate Estate, Waste Management, and Children's Services. He confirmed regular meetings with Heads of Service to address these pressures.

Regarding Children's Services, Councillor Elliott reiterated the commitment to providing the best care for vulnerable children, noting that the top 10 cases represented 20% of the budget. He also provided an update on the BOB (Being Our Best) Programme, aimed at optimising the council's organisational structure. He reported good progress and engagement with Trade Unions, with a lead officer available to provide a full update at a future meeting.

Councillor Ian Halsall inquired about the realism of budgets for Corporate Estate and Waste Management. Councillor Elliott explained the process was about lifting the lid to understand departmental needs better. The Executive Director (Operations) elaborated on pressures in Waste Services, citing staff costs and sickness pay, and noted that budgets were very lean but that there was now a better understanding of the cost base. The Executive Director (Sustainable Communities) detailed issues with the Corporate Estate, including the cost of maintaining empty assets like Culverhay, lost income, and challenges in achieving anticipated savings.

Councillor Toby Simon asked about the BOB programme and the number of appeals regarding role profiles. The Executive Director explained that approximately 1,000 job descriptions had been replaced with 350 role profiles, with fewer than 100 follow-up enquiries. Discussions with Trade Unions were confidential, and the next staff communication was expected towards the end of the year.

Panel Workplan

The Panel noted their future workplan, with upcoming items including the Quarter 2 Monitoring Report, the ADL Annual Report, and an update on the Council Tax Reduction Scheme scheduled for November 2024. Other potential future items include the BOB Programme and new performance indicators.