To receive a presentation from the Section 151 Officer.

The Chief Officer - Finance verbally updated the Committee on the future direction of budget strategy, the key points were as follows:

1.       The Council was currently consulting on the proposed budget for 2014/15; the consultation would close on 20 December 2013.  This would inform the decisions to be made by Cabinet in January 2014 and Full Council in February 2014.

2.       Significant savings had to be made due to reductions in government grant and budget pressures in essential areas, particularly Adults Wellbeing; savings of £15m had to be made in 2014/15.

3.       Presentations had been given to Cabinet Members and Group Leaders.  Presentations had also been given to, or were scheduled for, each political group.

4.       The Chief Officer - Finance invited the Committee to identify what additional information and engagement it wanted in terms of the scrutiny of the budget process, albeit acknowledging that time was limited.

The Chairman commented that there had been substantial overspend in Adults Wellbeing for many years and, whilst recognising the on-going efforts of the Director, questioned how this could be brought under control.  In response, the Chief Officer - Finance advised:

a.       The starting point for Adults Wellbeing going forward would be the actual expenditure rather than the current budgets, to avoid any in built overspend.  Consequently, there was a higher savings target to take this into account.

b.       The authority needed to gain assurance around identified savings, with detailed delivery plans signed off by Directors.  In particular, the Chief Officer - Finance and the Director for Adults Wellbeing were working to ensure that the budget was realistic and plans were in place which were deliverable within the relevant timescales.

c.       Budget monitoring showed a downward movement for Adults Wellbeing compared to the previous position and, although a significant overspend remained, this indicated that it was going in the right direction.

d.       In response to a question about the measures being put in place to ensure that data was accurate, the Chief Officer - Finance advised that some of the finance team had been redirected to support better management information and forecasts.  He added that, ultimately, he could only make judgements based on the information put in front of him.

The Chief Officer - Finance responded to questions from Committee Members, the principal points included:

i.        Further to point a. above, with expenditure as a starting point, it was reported that the authority was retendering contracts based on prices in the market and the experience of officers, and this would inform the budget process.  Savings would be delivered through the reorganisation of structures and reductions in staffing, with a number of consultations currently underway.  Further savings would be achieved by not filling vacancies in particular areas and by reducing the use of agency staff.  It was reported that each line of savings had a plan beneath it.

ii.       The assumptions in terms of Adults Wellbeing were based on current transition rates and there was no reason to expect these to change  ...  view the full minutes text for item 38