Agenda item

A report from the Executive Director – Resources is attached. (Key decision – reference number 4991)

(Report No.114)

(7.25 – 7.30 pm)

Councillor Mary Maguire (Cabinet Member for Finance and Procurement) introduced the report of the Executive Director – Resources (No.114) providing an update on the Medium Term Financial Plan and Tranche One Savings.

NOTED

1.            The continued financial challenges that were being faced and the uncertainty over future funding provisions at a time of growing pressures as detailed within the report.

2.            That the report set out detailed savings and income generating proposals.

3.            That although additional Government funding had been allocated for Adult and Children’s Social Care this was still insufficient to meet the level of demand, as set out in the report.

4.            That officers were continuing to work through proposals to close the remaining gap for 2020/21 and across the Medium Term.

5.            That the budget would continue to seek to protect the most vulnerable residents in the Borough and deliver high quality services.

6.            The significant uncertainty with only a single year financial settlement in place for 2020/21. Local Government would continue to lobby for a multi- year settlement to enable effective medium term planning, as set out in the report.

7.            That approval was being sought to adopt the Adult Social Care precept of 2% alongside the referendum threshold Council Tax increase of 1.99%. These proposals had been considered by the Labour Group. The final budget proposals would be brought to Cabinet in February 2020 for recommendation to full Council for adoption.

8.            The continued financial uncertainty facing local government as specified in the report.

9.            The detailed information set out within the tables in the report: Table 1 – spending assumptions; table 2 – funding assumptions; table 3 – savings; table 4a – tranche 1 and 2 savings and income generation proposals by theme; table 4b – savings and income generation proposals by Directorate; and, table 5 – overall 2020/21 position allowing for tranche 1 and 2 savings. The appendices to the report outlined the financial pressures, funding assumptions and, savings and income generation details.

10.         Cabinet Members noted that the majority group had received a presentation on the Medium Term Financial Plan Tranche One savings, with a focus on People on 30 September and, Place, Resources and Chief Executive’s Departments on 7 October 2019.

11.         The difficult financial decisions that had to be made across the Council in order to protect the service provision for Adults and Children’s Social Care as highlighted in the report. Demand continued to exceed funding provision from the Government. The impact on local council tax payers was noted.

12.         The savings that had been achieved in the area of public health through the re-commissioning of services in the areas of 0-19 services; sexual health; and, substance misuse. In response to questions raised, Members were advised in detail of the improved service provision and positive financial impact of the sexual health service provision through the new contract with North Middlesex hospital. The Council was committed to supporting its local hospitals and was pleased to note the improvements that had been achieved.

13.         Members’ sought reassurances that the invest to save proposals would not result in staff redundancies and the employment of agency staff/consultants. In response, Officers outlined particular examples of invest to save proposals as set out in the report and proposals for in house services.

14.         That the budget proposals reflected the continued and significant pressures being faced by the Council and the difficult decisions that had to be made, as set out in detail in the report. Examples of the Council’s commitments going forward were highlighted including the provision of additional affordable housing; the continued support for the Summer University Programme which had been a great success this year; and continuing to meet the needs of the Borough’s vulnerable residents.

Alternative Options Considered: None.

DECISION: The Cabinet agreed to

1.            Note the continued financial uncertainty facing local government and the need to maintain the Council’s reserves and balances.

2.            Note the protection of its services to the most vulnerable in the Borough as exemplified in paragraph 6.12 of the report.

3.            Approve the adoption of the Adult Social Care precept of 2% alongside the referendum threshold Council Tax increase of 1.99%.

4.            Approve the savings and income generation proposals in Appendix 2b of the report for further development and consultation.

Reason: The Cabinet need to manage the 2020/21 to 2024/25 financial planning process with due regard to the available resources.

(Key decision – reference number 4991)