Agenda item

Budget Scrutiny

Cabinet Report 21 October 2014 attached:

 

Policy and Resources Strategy 2015/16 to 2017/18 – Scene Setting Report

Minutes:

7.1  Councillor Fiona Colley, cabinet member, circulated a report due to go to the cabinet on 9 December.  She explained that the Autumn statement had not been issued yet and that she expected there to be an addendum to the cabinet report.  She added that the council anticipated a growth in business rates of from £2.5 to £5 million.  Councillor Colley clarified that in January the council would decide the council tax base and collection rate and that this would feed into budget decisions taken in February.  The strategic director for finance and resources, Duncan Whitfield, commented that this was the most difficult budget he had ever seen and that it came on top of the last two or three years.  The Better Care money had not been directed to local authorities.  Southwark had £31 million less to spend in addition to changes in demand for particular services and increased inflation.  There were uncertainties around business rate retention and the 30% New Homes Bonus had gone to the GLA.

 

7.2  The chair, Councillor Gavin Edwards, explained that this was an early session for the committee to get members thinking about the issues and possible ways to save money.  The committee would come back to the budget at its meeting on 2 February 2015.

 

7.3  Councillor Tom Flynn reported that in Westminster George Osborne was considering enforcing in law that any council’s deficit be eliminated by 2018.  This could lead to budget cuts of up to 50% for every department.  Councillor Flynn wondered how prepared Southwark residents were for this level of cuts.  Councillor Colley responded that as a council Southwark was trying to be optimistic and was sure it could balance its budget for the coming year.  At the same time, if some of the predictions came true, some councils might go bust.  The strategic director felt that there had to be a tipping point.  At the moment if the council was positive and strong and took difficult decisions, it would come out stronger.  But this level of cuts could not go on forever and there would be continuing issues about social care.  Councillor Claire Maugham felt that an honest conversation needed to be had with residents about what a local authority is for and what it could do.  She was concerned that scenario planning was taking place and asked whether there were areas in which local authorities might have more freedom.  Councillor Colley was not sure that it was likely that local authorities in London would get more financial freedoms although there might be more devolved powers which might come with funding.

 

7.4  In response to a question from the vice-chair, Councillor Rosie Shimell, Councillor Colley clarified point 54 in the report.  Councillor Shimell asked whether there was potential to fund the proposed free swim and gym from the public health grant and, if not, where funding would come from.  She referred to the leader’s answer to a question at council assembly which had suggested that there might be external funding, for instance from Sport England.  Councillor Colley indicated that nothing had changed since the leader’s answer.  Public health spending had been taken on a year ago and funding would be allocated to priorities set by the Health and Well-being Board.  It was not anticipated that free swim and gym would be fully launched in the next financial year.

 

7.5  Councillor Jasmine Ali stated that deprivation and child poverty were on the increase.  Without innovation it would not be possible to convince people in the council that they could work differently and in a more integrated way.  Councillor Colley responded that the strategic director was suggesting that integration would not be enough on its own.  Councillor Ali asked whether the budget would enable the council to help the children in its care.  The strategic director stressed that every healthy organisation must continue to innovate and that digital innovation was part of that.  A lot of efficiency savings had been taken in the last ten years.  Councillor Colley added that innovation needed to deliver savings.

 

7.6  Councillor Martin Seaton stated that cuts affected certain groups of people and highlighted direct legal services in paragraphs 92 to 96 of the report.  He wondered if reductions had been subject to an equality impact assessment and was concerned that the council might be acting unlawfully.  Councillor Colley emphasised that legal opinion was necessary and that equalities impact assessment work had been started.  Guidance had been issued to officers coming up with budget proposals.

 

7.7  Councillor Anood Al-Samerai highlighted the leaflet which had been distributed to the public on the different ways that the council could allocate its funding.  She commented that it did not refer to catering, cabs or consultants and that she would be grateful if officers would look at how the leaflet could be improved.  Councillor Al-Samerai also highlighted proposals for free swim and gym and was concerned about investment in the Seven Islands Leisure Centre and asked the cabinet member whether she would make a commitment to reviewing this.  She also asked the cabinet member whether she regretted the majority group’s unfunded manifesto and expensive commitments.  Councillor Colley responded that the manifesto commitments were important to the public’s health and the future of residents and would be managed within the available funding.  Councillor Al-Samerai stressed her view that it was difficult to support free services when the council was cutting staff.  Councillor Colley stated that it was important to be ambitious and that progress had been made on reducing spend on the areas highlighted by Councillor Al-Samerai and that departments were pushed to contain costs within their budgets.  She added that some cab costs related to children in care.  In respect of Seven Islands, Councillor Colley explained that difficult decisions had been taken over a period of time.  The council had a long held aspiration for a new leisure centre at Canada Water and was close to achieving this.  In this context, it was a difficult question as to what was a reasonable amount to spend on Seven Islands so that it could continue to function.  It would not be right to invest £8 million when Seven Islands would only be around for five years at most.  £2 million investment would ensure that the centre remained operational and of a decent quality.

 

7.8  Councillor Adele Morris stated that the council should be focussing on the most vulnerable sections of the community.  She referred to the leader’s response to a question at council assembly which had suggested the need for cuts and better and more innovative services.  Councillor Morris felt that the council needed to be optimistic.  Councillor Colley replied that the council need not be overly negative as it would be able to set a balanced budget but that there would be reductions, savings and cuts.  Councillor Johnson Situ asked for an update on shared working with neighbouring boroughs and whether staff had been consulted on savings proposals.  Councillor Colley explained that staff were encouraged to bring forward ideas for innovations in working and that specific proposals were subject to the staff consultation mechanism.  In terms of shared working, there were a few projects ongoing such as shared legal services with Lambeth and the council was exploring whether these could be taken further.  There might be opportunities to work with Lewisham and Lambeth in the area of economic development.  Councillor Tom Flynn asked whether consideration was being given to council-wide voluntary redundancies.  Councillor Colley indicated that this was being actively looked at.

 

7.9  Councillor Ali emphasised that free school meals were tremendously positive and that free swim and gym would help Southwark residents towards a healthier lifestyle.  The chair asked whether any reduction in the hours of the call centre was being considered.  Councillor Colley responded that she would take away any suggestions for savings but that an out of hours service would need to be continued.  In response to questions from Councillor Claire Maugham, Councillor Colley explained that the workforce strategy allowed every member of staff to meet with their chief officer and cabinet member in order to understand the vision for the council.  She agreed that rent collection was key but that tenants should be entitled to help if they were unable to pay.

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