Agenda item

To follow

Report ACS11010

The Portfolio Holder introduced the Draft 2011/12 Budget incorporating cost pressures and additional saving options reported to Executive on 12^th January 2011.  Members were requested to consider the savings proposed and to also identify any further action to be taken to reduce the cost pressures facing the Council over the next four years.  The Executive requested that each PDS Committee considered the proposals arising from the   “The Local Government Finance Settlement 2011/12 to 2012/13 and Related Budget Issues” report presented to the Executive on 12th January. Each PDS Committee is requested to provide comments, prior to Executive making recommendations to Council for the 2011/12 Budget.

The Interim Head of ACS Finance reported to the Committee that Bromley Council had incurred net losses in funding of £15 million in 2011/2012 and this would rise to £22 million in 2012/2013.  The Committee were informed that if the proposed savings options were approved, Officers should be in a position to deliver a balanced budget.

The Director ACS reviewed all the savings options presented in Appendix 2b of the report and outline how the savings would be achieved.

The Chairman corrected an error on page 17 of the report suggesting that the comment within line 2 should read “…increasing the amount of commissioned in-house training…”

The Chairman reported that she was uncomfortable with the proposal to reduce spending on the Private Sector Renewals Grant as this had been so successful.  The Director ACS clarified that smaller schemes such as “Staying Put” were unaffected by this proposal.  The Director suggested it would be helpful to present a future paper to the Committee with evidence of the reviewed running of the programme.  The Committee was assured that quality impact assessments would be undertaken on all the proposed saving options.

Another Member questioned whether charges could be placed on properties, and the Director ACS responded that whilst this was one of the options available, charges on properties were complex to administer.

In response to a question, the Director ACS reported that the total spend on the Private Sector Renewals Grant was around £400,000 to £500,000.

In respect of the proposed efficiencies through contracting, a Co-opted Member expressed concern as the contracts with third sector and voluntary organisations were important.  The Director ACS stressed that in future years the voluntary sector would play an increased role in service delivery.  The Director ACS explained that there were other efficiencies in contracting that could be made and outlined an example of a recent saving that had been made to the Committee.

A Co-opted Member highlighted that there was a network of forums that underpinned the relationship between voluntary and statutory organisations, and asked if the networks would be impacted by the savings.  In response the Director confirmed that they would not be affected.

Referring to the ‘Reduced Funding to Sheltered Housing’, the Chairman asked for an indication of the timescales for consultation.  The Director ACS responded that the consultation process was in the hands of the Housing Associations because the changes to levels of funding for services would affect their tenants.  Mrs Gill Rose reported that could to be difficult as a result of the contractual arrangements that were in place.  Mrs Rose highlighted that there had been publicity around national difficulties surrounding the loss of warden services and these difficulties were reflected at a local level.  The Director ACS noted that if this saving could not be realised, other savings would have to be found in other services areas.

The Portfolio Holder underlined the difficulties faced by the Department in continuing to deliver necessary services following the significant reduction in funding, and highlighted the importance of mitigating the impact any loss of service would have on service users.  The Portfolio Holder requested regular update reports to the Committee as the savings were implemented. 

RESOLVED that the:

(a)  savings options proposed by the Executive be noted;

(b)  update on the financial forecast and the Draft 2011/12 Budget proposals be noted;

(c)  outcome of the Local Government Settlement which results in significant reductions in Government funding to the Council be noted; 

(d)  the cost pressures from 2011/12 to 2014/15 be noted.