Issue - meetings

Report FSD19005

The Committee considered a report setting out the draft Renewal, Recreation and Housing Portfolio Budget for 2019/20, which incorporated future cost pressures and initial draft saving options reported to the Council’s Executive on 16^th January 2019.  Members were requested to provide their comments on the proposed savings and identify any further action to be taken to reduce cost pressures facing the Local Authority over the next four years.

The Director: Regeneration advised Members that a number of pressures would continue to impact the Renewal and Recreation Portfolio budget for 2019/20, including the challenges of variations in the income received from the Planning Service.  There were significant pressures associated with the increasing demands and costs of temporary accommodation which were projected to rise to in excess of £9M by 2023, and could not be met through contingency funds set aside for homelessness and welfare reform pressures, although actions were in place to slow the rate of increase and mitigate overall cost pressures.  A transformation programme would be undertaken across the Local Authority during the first half of 2019, which would include a root-and-branch analysis of every service.  The transformation programme was expected to be completed by the end of August 2019, following which a range of service proposals would be presented to Members.

In considering the draft Renewal, Recreation and Housing Portfolio Budget for 2019/20, the Chairman underlined the financial challenges facing the Local Authority with a projected budget gap of £32.2M per annum by 2022/23, and requested that further information be provided to explain how this figure had been estimated.  The Chairman also requested clarification regarding a variation of Cr £3,111k in the Other Changes column for Non-Controllable budgets for the draft Renewal, Recreation and Housing Portfolio Budget for 2019/20, as well as the reasons for a proposed increase in the Renewal budget within the Planning Service for 2019/20.

In response to a question from a Member, the Chief Planner confirmed that Section 106 contributions from developers were used to mitigate the impact of developments on public services.  There were a number of restrictions on how and when Section 106 contributions could be used, and there was a general move to replace Section 106 agreements with the Community Infrastructure Levy scheme which was currently being developed by the Local Authority.  The Community Infrastructure Levy offered a more flexible way to invest contributions from developers, but would need to be planned in advance with intended spend published on an annual basis.

RESOLVED that:

1)  The financial forecast for 2019/20 to 2022/23 be noted;

2)  Members’ comments on the initial draft Renewal, Recreation and Housing Portfolio budget 2019/20 as a basis for setting the 2019/20 budget be noted; and,

3)  Members’ comments on the initial draft Renewal, Recreation and Housing Portfolio budget 2019/20 be provided to the meeting of the Council’s Executive on 13^th February 2019.