To receive apologies for absence.

Apologies were received from Councillor RJ Phillips, Leader of the Council.

To receive any declarations of interest by Members in respect of items on the Agenda.

There were no declarations of interest.

To approve and sign the Minutes of the meeting of the Strategic Monitoring Committee held on 2 December 2009.

RESOLVED:  That the Minutes of the meeting held on 2 December 2009 be confirmed as a correct record and signed by the Chairman.

There were no suggestions from members of the public.

To seek the Committee’s views on the draft Medium Term Financial Strategy (MTFS) 2010/13.

The Committee considered the draft Medium Term Financial Strategy (MTFS) 2010-13.

The report noted that the MTFS was to be considered by Cabinet on 21 February with a view to Council approving the Strategy on 5 February.

The Director of Resources commented on the context within which the Strategy had been prepared.  He noted the considerable uncertainty over the financial position of local government generally in face of the state of the economy and national finances.

The national grant settlement for local government in the final year of the Comprehensive Spending Review 2007 provided for the Council to receive a 4% increase in grant (£2.2m).  However, the prospects for future years were more difficult with the Council projecting a 5% reduction year on year.

The original MTFS had originally envisaged a 4.7% Council Tax increase, reduced to 3.9% last year.  The Strategy now assumed 2.9% for 2010/11 and the following two years but it was likely that there would be a need to be flexible on this point. 

A 1% reduction in Council Tax meant an £830k reduction in the base budget year on year.  Whilst the Government might be seeking lower Council Tax rises the Council needed to weigh the implications of any reduction in the proposed increase carefully given the range of budgetary pressures it faced.  The Director was monitoring the situation and developing contingency plans with colleagues.  He would present a clear statement on the latest position to Council in February.

In discussion the following principal points were made:

·         Noting that the Government had indicated that it expected to see Council Tax rises “substantially” below 3%, Members questioned whether a proposed rise of 2.9% was sustainable.

      The Director said that the Government never set a firm limit for capping in England.  He was monitoring proposed rates across the Country.  The average proposed increase by unitary authorities had originally forecast 3.9% but this was reducing.  The average for county councils was currently slightly lower at 3% but this was also reducing. 

      The Government had the power to cap the Council’s Council Tax increase.  This would mean the Council incurring the substantial cost of rebilling and having other consequences that the Council would wish to avoid.

·         That, whatever the future prospects, the Council expected to receive a 4% increase in Government grant for 2010/11.  It was questioned how the proposal to increase Council Tax by 2.9% in this context would be perceived by the public and Government.  In a year of a General Election there would be great pressure to reduce the level of Council Tax increases and it was asked what contingency plans were in place should there be a need to reduce the rate of increase.

The Director of Resources reiterated that there were a number of budgetary pressures, for example the need to respond to new legislation and increases in the costs of contracts.  If the proposed level of Council Tax increase was reduced, mindful that the MTFS had originally envisaged an increase of 4.7%,  ...  view the full minutes text for item 5.

To consider whether to make any comments to Cabinet on the draft joint Council and NHS Herefordshire Corporate Plan.

The Committee considered the proposed joint Council and NHS Herefordshire Corporate Plan.

The report noted that the joint Plan was to be considered by Cabinet on 21 February with a view to Council approving the Plan on 5 February.  The NHS Herefordshire Board was to be invited to approve the Plan on 28 January.

A revised report to Cabinet had been circulated to Members.  The Corporate Policy and Research Manager (CPRM) noted that this now contained two appendices.  Appendix 1 comprised the vision, priority themes, strategic objectives and long-term outcomes, and was proposed to be recommended to NHS Herefordshire and the Council.  Appendix 2 was the present working draft of the performance indicators and associated targets, key projects and milestones that would be used to achieve these, as well as providing the basis for strategic performance management.  Appendix 2 was work in progress. 

He added that the format of the Corporate Plan was a departure from previous years, with considerably fewer words, and a clear focus on delivery.

The intention was to align the plans of the Council and NHS Herefordshire by setting out what they were seeking to achieve through their close partnership, within the overarching framework of the refreshed Sustainable Community Strategy.

It was essential that the Plan was affordable.  He reported that it had accordingly been prepared with regard to the assumptions about future funding in the medium term financial strategies of the Council and NHS Herefordshire.  However, as noted in the risk management section of the report to Cabinet, the Plan could need to be reviewed were those assumptions to prove significantly wide of the mark, for instance in the light of a dramatic change in the Government’s funding regime for local authorities.

In discussion the following principal points were made:

·         The CPRM confirmed that the intention was to produce a version of the Plan that was readily accessible to the public.

·         The CPRM provided background on the identification of the major challenges highlighted in Appendix 1 in relation to the joint vision for the Council and NHS Herefordshire. He confirmed that these were intended to be of equal priority.

·         Members emphasised the importance of the provision of sufficient affordable housing, noting that this had a number of beneficial impacts, for example on people's health, and expressed concern that the currently proposed targets seemed unlikely to meet the probable level of need.

·         It was observed that Appendix 2 contained targets for the completion of capital schemes such as the Butter Market for which there was as yet no provision in the Medium Term Financial Strategy.  The CPRM reiterated that appendix 2 was a work in progress.  He also confirmed that further drafts of Appendix 2 would set out clearly the  basis of measurement to be used for each  of the proposed performance indicators.

·         Members noted that the Plan was being recommended to Cabinet as affordable and deliverable. However, they wished to emphasise the need to be vigilant in ensuring that this was and remained the case.  ...  view the full minutes text for item 6.

To consider whether to make any comments to Cabinet on the refresh of Herefordshire’s Sustainable Community Strategy covering the period 2010 – 2013.

The Committee was informed that further revisions were being made to the Sustainable Community Strategy and it was intended to present an updated document to the Committee in February.

RESOLVED: That consideration of the Strategy be deferred.

To consider the work programmes of the scrutiny committees.

The Committee considered the work programmes of the scrutiny committees.

The Committee’s responsibility under the Council’s new Constitution for overseeing, coordinating and approving the work programmes of the scrutiny committees was noted.

It was reported that expressions of interest had been received to fill the remaining place on the External Communication Review Group appointed by the Strategic Monitoring Committee in December 2009.

RESOLVED: 

That       (a)     the current work programmes be approved as a basis for further development; and

               (b)    Councillor PGH Cutter be invited to serve on the External Communication Review Group.