Agenda item

A report by the Director of Finance, Performance and Procurement, (to follow).

The Committee is asked to support the update regarding the work towards a balanced budget for 2019/20.

64.1 The Committee considered a report by the Director of Finance, Performance and Procurement (copy appended to the signed minutes).

64.2 The Cabinet Member for Finance and Resources introduced the report, which provides an update on the Medium Term Financial Strategy presented to the last meeting of the Committee and the work underway to balance the budget for 2019/20. The local government finance settlement announcement is expected in December, alongside further details on how the extra adult social care funding may be used. Continued pressure is being applied to the Government for better long term funding of Council services. Having removed from the report the savings proposals which will not be achieved in this financial year the budget gap currently stands at £66.3m, which demonstrates the critical nature of the important decisions necessary to balance the budget.

64.3 The Director of Finance, Performance and Procurement introduced the report and highlighted key information for the Committee. The detail of the budget hasn’t yet emerged but officers are working on demand assumptions for services in 2019/20-2022/23 in order to close the budget gap. There is some uncertainty at this point but the latest inflationary figures will be updated in the final report coming to the January meeting of this Committee, and the national living wage and Fire and Rescue Service pensions will also be clarified by that time. The report reiterates the importance of maintaining the Council’s level of reserve funds, especially in light of the fair funding formula.

64.4 The Committee made comments in relation to the report including those that follow. It:

·        Commented that austerity is certainly not at an end and this concern is widely held by Members. The effects of past decisions and service reductions often have unintended consequences which still affect residents, with the burden often falling to District and Borough Councils. Extra funding is welcomed when given and lobbying of Government must continue, however the missing part of the full picture is the Government green paper on Adult Social Care. The Leader commented that at a recent County Councils Network (CCN) conference all Councils are in the same position as West Sussex. It is hoped there will be clarity in December with the settlement figure, however what the Council would really benefit from is longevity in financial planning.

·        Sought clarity regarding the £6.1m highway maintenance award from the Government as to whether this is for additional works above those already programmed or whether it can be added to the general highways budget, and if it is for additional works then is there sufficient capacity to bring forward works. The Leader explained that it is understood to be for additional works, however further details are awaited soon which will clarify how it is to be used. The Cabinet Member for Highways and Infrastructure confirmed officers are currently assessing the time and capacity requirements in relation to extra works being undertaken and he would feed back the review findings to the Committee in due course.

·        Sought clarity in relation to the strategic savings decision for on-street car parking, whether changes would only be made in areas which have been subject to a Road Space Audit. The Leader confirmed this is correct, and the decision is expected to be taken on 18 December.

·        Expressed concern regarding the recruitment freeze and that some important vacant posts are not being recruited to, such as lollipop posts which are critical to safety. The Leader commented that currently the Chief Executive assesses and approves each recruitment post. The priority is children’s social worker posts to ensure timely assessments take place, and £2m has been allocated to support new posts.

·        Commented on the resources within the Communications team producing magazines and publications for residents, yet there is a homelessness problem within the County and stated the Council’s priority should be the most vulnerable. The Leader commented that the Communications department appears to have grown over recent years, however this is not the case. It appears so due to staff who were embedded within their services undertaking a communications role that have now been centralised into one team. All services are being considered for savings, including a review of the Connections magazine.

·        Commented in relation to the local assistance network (LAN) and supported housing savings proposals that initially the services were given to local councils by the Government but without any funding, which adds to authorities’ difficulties now in funding extra demand. The Council should be lobbying hard to stop further unfunded Government initiatives such as this. The Leader explained that in 2011 the Government ring-fence for LAN was removed but the Council have continued to fund it. Government are being lobbied for funding but there has not been much progress. In relation to supported housing, the Council is not the housing authority but creative discussion is taking place with the District and Borough councils to mitigate this saving.

·        Highlighted that sufficient information must be made available to members as far in advance as possible for the Member Day on the Budget, Savings Programme and Capital Programme on 9 January in order to ensure effective member dialogue. The Director of Finance, Performance and Procurement explained that the deadlines are tight but officers are aiming to get the information out in time for the next meeting of this Committee.

64.5 Resolved:

1) That the Committee recognise the difficult budget decisions to be made and noted that these will be scrutinised at the relevant select committees over the next few weeks;

2) That the Committee looks forward to being able to review and scrutinise the full budget papers at the January meeting;

3) That the Committee reiterates the need for information to be provided ahead of the 9 January 2019 Member Day; and

4) That the Committee stresses the need to continue to lobby the Government for funding.