Agenda and minutes

Apologies for lateness were received from Councillor Pauline Tunnicliffe.

Councillor Peter Fookes declared an interest in relation to item 11 (Operational Building Maintenance Budgets) on the Executive’s agenda as a trustee of Penge and Anerley Age Concern.  

In accordance with the Council’s Constitution, questions to this Committee must be received in writing 4 working days before the date of the meeting.  Therefore please ensure questions are received by the Democratic Services Team by 5pm on Thursday 30^th January 2014.

RESOLVED that the minutes of the meeting held on 8^th January 2014 (excluding exempt information) be confirmed.

Report CSD14026

The Committee noted matters arising from previous meetings.

The Committee noted the latest edition of the Forward Plan of Key and Private Executive Decisions as published on 14^th January 2014.

In accordance with the Council’s Constitution, questions to this Committee must be received in writing 4 working days before the date of the meeting.  Therefore please ensure questions are received by the Democratic Services Team by 5pm on Thursday 30^th January 2014.

Report DRR14/015

The Committee received an update on the delivery of the Bromley Youth Employment Project by Bromley College of Further and Higher Education on behalf of the Council. Although the College had improved its performance in relation to apprenticeships it had conceded that it would not be able to recover its performance on internships within the life of the project.

Vaughan Leishon attended the meeting on behalf of the College, and the Committee received presentations from Arron Guard, an intern, and Tom Fitton, an apprentice. Arron described his internship with the Newshopper, including the opportunities to work in different parts of the business and the training opportunities. Tom was working as a business administration  apprentice for Bromley College supporting the delivery of the Employment Project. Both were grateful for the training, experience and opportunities presented by the Project and hopeful that their current roles would lead to sustainable full time jobs.

The youth employment market was changing rapidly, with youth unemployment declining in the borough and a range of new schemes available. Officers confirmed that, after taking legal and procurement advice, it was recommended that the Council give three months notice to terminate the contract and review how the remaining funding could be spent most effectively. Despite this, the College was confident that it would deliver all 66 apprenticeships (42 were already in place). The apprenticeships had to last at least a year and a day, and these would continue to be funded.

The report recommended establishing a task and finish group, overseen by a Member Working Group, to draw up an options appraisal for the remainder of the money allocated to the Project. The Committee urged that this work commence as quickly as possible and should include looking at barriers to employment amongst young people, receiving evidence on whether young people were genuinely helped by such schemes (or would have got these jobs anyway) and how the Council could assist Looked after Children find employment. The Chairman asked that a draft work plan be drawn up and circulated to Members. 

RESOLVED that the proposals to terminate the contract for the delivery of the Bromley Youth Employment Project with Bromley College by providing three months notice, to reallocate the earmarked reserve to support the objectives behind the Project and to approve a task and finish group overseen by a Member Working Group to undertake an options appraisal be supported. 

Report CSD14033

It was proposed that Bromley’s Registration Service, responsible for the registration of births, deaths and marriages, should move to a local governance scheme. This followed the service’s “excellent” inspection outcome following inspection by General Register Office in 2009 and would allow more local freedom.

RESOLVED that the proposal that the Bromley Registration Service move to a local governance scheme by April 2014 and commit to the National Code of Practice and Good Practice Guide be supported.

Report FSD14010

The report proposed service changes to secure the joint appointment of a Head of IT for Bromley and Southwark as the first stage of a shared service opportunity. The successful postholder would be required to produce a business case to identify opportunities for financial savings and/or service improvements. Two other Councils were also interested in the proposals, and there were similar arrangements elsewhere in London. The post would be hosted by Southwark and would be subject to their terms and conditions.

Asked whether other local partners could be brought into the arrangement, the Director of Finance commented that this might be more likely if in future a local authority controlled company was set up to provide a secure platform.

RESOLVED that, subject to confirmation by the LB Southwark, the proposal to enable the recruitment of a joint Head of IT be supported.

Doug Patterson, Chief Executive, attended the meeting to update the Committee and answer questions.  He began by outlining progress on three major issues –

(i)  Integration of Health and Social Care – Budgets were being transferred to the Council and there were likely to be more joint commissioning posts at senior levels. In the short term, the CCG faced challenges overcoming the problems at the Princess Royal University Hospital (a CQL announcement was expected the next day), while other partners such as the Police were also undergoing major change.

(ii)  Local terms and conditions – the Employment Tribunal for the remaining staff who had rejected local terms was in June. Staffing numbers (excluding schools) had reduced from around 3,000 to 2,000.

(iii) Budget Monitoring – The overspends predicted in September when the Chief Executive had last appeared before the Committee had been addressed and a small underspend was predicted for 2013/14.

Mr Patterson reported that officers were still working on the information Cllr Nicholas Bennett had requested on the cost of new burdens – Councillor Bennett urged that this information be made available quickly so that it could be used to lobby government. 

A note was tabled setting out the staffing and budget positions overall and for each of the three Council departments. This formed the basis of the 2014/15 draft budget.  The figures were –

Chief Executive’s Department:   £44m/359 staff(318 fte)

Environment & Community Services  £42m/443 staff/364 fte)

Education, Health & Care Services:   £109m/1277 staff (1,027 fte)

TOTAL  £195m/2,069 staff (1,710fte)

Performance was still good, despite the reduction in performance data collection and formal monitoring (CAA/CPA) and both money and staff were focussed on delivering Building a Better Bromley. A further £50m in budget reductions had to be found by 2017/18, but there was less and less scope for savings and there was a long list of variables. Officers were working to provide a framework of information, including baseline reviews and the commissioning programme, to allow Members take vital decisions.

The Chairman urged the Chief Executive to provide a timetable for addressing the long term budget issues facing the Council, and to have the Council ready to proceed immediately after the election.  Mr Patterson stated that some savings were already being achieved through the commissioning programme (such as with the Customer Service Centre) and decisions were being lined up on other services. Considerable background research and soft market testing had been carried out, and intelligence built up for the crucial decisions ahead, but he emphasised again that services needed to be commissioned appropriately rather than just outsourced. It was suggested that the new Members needed to be given an overview of progress soon after the election.

On the future of the Education Service, the Chief Executive confirmed that the Interim Assistant Director was examining what sort of service and staff would be needed in future, and there would be a clearer direction soon. It was also confirmed that the Tackling Troubled Families initiative was being monitored by the Care Services PDS  ...  view the full minutes text for item 441.

Members of the Committee are requested to bring their copy of the agenda for the Executive meeting on 12^th February 2014.

Report CSD 14027

The Committee considered the following reports on the part 1 agenda for the meeting of the Executive on 12^th February 2014.

(5) Budget Monitoring 2014/5

Report FSD14009

The Committee considered the fourth budget monitoring report for 2013/14 based on expenditure and activity levels up to November 2013. The report also highlighted significant variations that would impact on future years and early warnings affecting the year end position, and recommended releasing various funds from contingency.

Councillor Neil Reddin requested an update on the financial position regarding The Glades – this would be circulated outside the meeting.

RESOLVED that the recommendations be supported.

(6) 2014/15 Council Tax

Report FSD14014

The report set out the final issues affecting the 2014/15 revenue budget to be recommended by the Executive to full Council, including the level of the Bromley element of the Council Tax and the schools budget. Confirmation of the final GLA precept would be reported to the Council meeting on 24^th February 2014. The views of the other PDS Committees would be circulated before the Executive’s meeting.

The Director of Finance reported that the referendum limit had now been confirmed at 2%, but there had been pressure within government for this figure to be reduced. The welfare fund had been a new responsibility for the Council added in 2013, but the government had indicated that funding would be withdrawn in 2015/16. He expected that expenditure in 2013/14 would be about £400-£500k, within a budget of £800k. The fund was to assist vulnerable people who the Council would probably have a statutory duty to fund under social care or homelessness legislation, so this would be a major pressure. The Leader had already written to the Government asking it to reconsider (appendix 1).

Questioned about the reserves which were £131m in 1997, the Director confirmed that reserves had fallen considerably but in recent years the levels had improved with front-loaded savings and reserves not being used to keep down the Council Tax or fund the capital programme. There were now various funds including Economic Development and Investment, Invest to Save, and various risk funds, and a  general reserve of around £20m. Any underspends would be directed to the Economic Development and Investment Fund which provided a means of achieving sustainable income for the Council for the future.

A Member commented on the level of the contingency in the 2014/15 budget at £13.7m, which he considered could lead to complacency about keeping within budget. The Director advised that this sum reflected many variables and risks and also included key cost pressures not allocated to Portfolios at this stage, for example, homelessness. He added that as the budget reduced there was less flexibility and that there would be robust policing of expenditure.

RESOLVED that the recommendations be supported.

 (7) Capital Programme monitoring Q3 2013/14 and annual Capital Review 2014 to 2018

Report FSD14015

The report summarised the current position on capital expenditure and receipts following the third quarter of 2014/15 and presented  ...  view the full minutes text for item 442.

(To Follow)

RESOLVED that the Press and public be excluded during consideration of the items of business referred to below as it is likely in view of the nature of the business to be transacted or the nature of the proceedings that if members of the Press and public were present there would be disclosure to them of exempt information.

The following summaries

refer to matters

involving exempt information

The exempt minutes of the meeting held on 8^th January 2014 were confirmed.