Agenda item

(a)       That the Streetscene & Transportation and Planning, Environment & Economy efficiency proposals for 2020/21 be endorsed; and

(b)       That the Streetscene & Transportation and Planning, Environment & Economy cost pressures recommended for inclusion in the budget for 2020/21 be endorsed.

The Corporate Finance Manager presented a report on the current financial forecast for 2020/21 together with efficiencies and cost pressures across portfolios.  Specific proposals for the portfolio were highlighted for review.  Since the report to Cabinet in April, the overall projected ‘gap’ in the Council’s funding requirements for 2020/21 had increased by £2.854m to £16.174m.

The report also set out the national position and options available for the Council to achieve a balanced budget.  Proposed efficiencies for all portfolios had been shared with Members at a workshop during the summer.  Since that time, no further options had been put forward.  The overall summary position to date showed a significant contribution of £8-8.5m towards the budget gap comprising of corporate and portfolio efficiencies and income (£1.784m), income derived from a provisional 5% increase in Council Tax (£4.38m) and the amount available to the Council from an Actuarial review which was nearing completion (£2m).  The remaining options - dependent on the outcome of the Welsh Government (WG) budget - were a further review of the Pension Fund employer contributions, the sharing of cost pressures with schools and a Council Tax increase above the working assumption.  The Provisional Settlement was due to be published on 16 December, with the Final Settlement confirmed for 25 February; possibly after the Council had set its final budget for 2020/21.

Councillor Peers asked whether a review of services was amongst the remaining solutions available to balance the budget.  He noted that the provisional 5% increase in Council Tax required a much improved Settlement and said that alternative options were needed to avoid a similar position to that in the budget process for 2019/20.  He also commented on the projected income from car parking where some areas had exceeded projected levels whereas others were consistently below targets.  He added that garden waste charges should not be classed as an efficiency as charges were being passed to residents.

In response, the Corporate Finance Manager said that all service efficiencies had been included in portfolio business plans and that to implement anything new at this stage would be difficult.  On the Council Tax increase, whilst a positive Settlement was expected from WG, the question remained whether it would be sufficient.  More detail on the options available would be reported to Council later in the day.  On the single person discount for Council Tax, a review that was underway was expected to generate additional income during 2019/20 and 2020/21.  The Corporate Finance Manager acknowledged the need to differentiate between cost efficiencies and income generation.

Councillor Carolyn Thomas said that after the achievement of efficiencies, a decision had been taken not to cut any more services to avoid the impact on residents.

The Chairman sought clarification on contributions from Organisational Change and the efficiency on income from external works.

The Chief Officer (Streetscene & Transportation) said that recognising the difficulty of finding further efficiencies, beyond those already identified, had prompted a change in the way of working to generate income.  More information would be shared at a later stage on exploring such opportunities within services through cultural changes or Alternative Delivery Models.  On income from external works, the Chief Officer provided explanation on the benefits from the outsourced fleet provision through a single contractor, resulting in newer vehicles and reduced maintenance costs.

When asked by the Chairman, the Corporate Finance Manager said that the income generation approach would be applied across the whole of Council services.

Councillor Banks said that the aim was to protect core services and that no further suggested efficiencies had been put forward by Members.  He gave a reminder that garden waste collection was not a mandatory service and that the charges offered value for money to residents.

The recommendations in the report were moved by Councillor Shotton and seconded by Councillor Dunbobbin.

RESOLVED:

(a)       That the Streetscene & Transportation and Planning, Environment & Economy efficiency proposals for 2020/21 be endorsed; and

(b)       That the Streetscene & Transportation and Planning, Environment & Economy cost pressures recommended for inclusion in the budget for 2020/21 be endorsed.