Note: This meeting followed on from the Health and Social Care Overview and Scrutiny Committee, where the presentation on the Budget 2015/16 and Medium Term Financial Strategy was received.  The presentation was provided in a supplement to the agenda.

To receive apologies for absence.

Apologies for absence were received from Councillors TM James and DB Wilcox.  Apologies were also received from Councillor H Bramer (Cabinet Member Contracts and Assets).

To receive details of members nominated to attend the meeting in place of a member of the committee.

Councillor KS Guthrie substituted for Councillor DB Wilcox.

To receive any declarations of interest by members.

No declarations of interest were made.

To receive the minutes of the meeting held on 4 November 2014.

The minutes of the meeting held on 4 November 2014 were received.   Referring to minute 27, paragraph 2, a committee member thanked the Director for Economy, Communities and Corporate for providing comprehensive details about the council’s vehicle fleet and said that he hoped that it would be kept up to date.  Another committee member drew attention to resolution (b), that ‘Committee members be provided with details of the range of council assets and a briefing note on the assumptions being used in relation to the Medium Term Financial Strategy’, and said that it was regrettable that the information had not been provided in time for this meeting.

RESOLVED:      That the minutes of the meeting held on 4 November 2014 be approved as a correct record.

To seek the views of the overview and scrutiny committees on the budget proposals to be presented to Cabinet on 15 January 2015.

The Chairman noted that members had asked a number of questions at the earlier meeting of the Health and Social Care Overview and Scrutiny Committee that were relevant to the remit of this committee and he invited further questions.

The Chief Financial Officer provided answers to a number of questions from committee members, the responses included: 

1.       The Projected Breakdown of Council Funding Sources 2013/14 - 2016/17 slide (page 8 of the supplement) showed where sources of funding would need to come from over the next four years; as the government funding proportion reduced, the Council Tax and Business Rates proportions increased.

2.       Assumptions within the budget plans included an increase in Council Tax of 1.9% and an element of growth in Council Tax resulting from new housing.

3.       Attention was drawn to the Budget Consultation slide (page 15 of the supplement) and the statement that ‘On average the results indicated a reduction in Council Tax increase to 0.9% from 1.9%’.

4.       Reference was made to the treasury management details contained in regular budget monitoring reports to Cabinet and it was confirmed that the loan portfolio was being managed actively, with quality assurance provided by external advisors.  It was reported that the authority was taking advantage of low short- and medium-term borrowing rates wherever possible but it was not always beneficial to reschedule existing long-term debts because of the prohibitive penalties involved.  The Chief Financial Officer agreed to provide more detail to a committee member after the meeting.

5.       It was not anticipated that increased savings in terms of Back Office Services from £200k to £420k in 2015/16 would impact on direct service provision as this principally related to changes in arrangements with the council’s back office service provider, Hoople; a related report would be considered by Cabinet in January 2015.

6.       The savings plans for Customer & Library Services were consistent with the changes to service delivery agreed by Cabinet on 23 January 2014 (minute 65 refers).  The Cabinet Member Corporate Services confirmed that the Masters House redevelopment in Ledbury would co-locate customer service and library facilities.  It was suggested that the wording on page 34 of the report be revisited.

7.       In terms of ‘one off costs to achieve improvements and savings’ (page 25 of the supplement), future relief road development work would be capitalised as planned for previously and the reduction in car parking income at Merton Meadow would result from development associated with the link road.

In response to questions from the Chairman:

i.        The Chief Financial Officer advised that gaps in expertise needed to be addressed, especially around change management, but the authority was trying to reduce the use of external consultants over time and this was reflected in the Annual Governance Statement.

ii.       The Leader said that it would not be possible to limit the level of Council Tax increase to 0.9%, as this would require approximately £800k of additional savings.

Responding to a question from a committee member about the recommendations made at  ...  view the full minutes text for item 35.