Agenda item

As detailed in the recommendation.

The Leader of the Council and Cabinet Member for Finance introduced the draft revenue budget proposals for the Council Fund and advised of the ongoing work to close the current remaining budget gap in 2014/15. 

                        The Leader and Cabinet Member for Finance explained that for Cabinet the overall strategy for 2014/15 had been to seek to maximise internal cost reductions as much as possible including management, operating and workforce costs.  In early 2014, it was proposed that consultation with local communities be carried out on the priorities for the future and the choices to be made over the way the Council runs and pays for local services from 2015 onwards.  Local communities would be invited to share in planning solutions for the future.  The Cabinet continued to remain resolute in defending local communities against the worst impacts of cuts to the Council’s funding. 

            The Head of Finance detailed the financial strategy which had been adopted to support the Organisational Redesign and Change Programme as shown in the report.  The report provided details of the total revenue budget and budget requirements, details on expenditure, pay and inflation, schools budget, earmarked and unearmarked reserves and the Investment Strategy.  The Council had an obligation to assess the potential equalities impacts of its budget proposals and it was important that all aspects of the Organisational Redesign and Change Programme were subject to an appropriate Equalities Impact Assessment, to ensure that there was no potential for discrimination or disadvantage to either service users of employees.   

            The Chief Executive thanked Members and officers who had worked together in setting the proposed 2014/15 budget.  He provided details on the Organisational Redesign and Change Programme and the expectations of the Cabinet for this programme.  The programme had four sub-programmes, as set out in the Medium Term Financial Plan:-

·        Corporate Value for Money

·        Functional Value for Money

·        Organisation Design: Structure and Operating Model

·        Operational Design: Workforce

The newly adopted Value for Money Model had replaced the previous programmes of targeted service reviews.  The Organisational Design: Structure and Operating Model Sub-Programme involved a two phased review of the way the Council was structured and operated with the dual aim of (1) improving the way the Council worked and (2) making significant reductions in senior management costs.  The combined efficiency target for these two phases was set at £2m in a full financial year with a proportionate target for 2014/15 of £1.45m based on the timing of the current implementation plan.  There will be operational efficiencies across corporate level and there was a good degree of confidence that the £10m savings in this area could be achieved.  A more challenging review involved the changes to workforce and management with big decisions needing to be taken over the coming months.

In line with the financial strategy, a risk based approach had been taken to the assessment of all potential items of additional cost as to their likelihood and the level required.  The achievement of planned efficiencies was a priority with the Improvement Plan and the Council had a good record of making efficiencies year on year.  For 2014/15, the scale of the challenge was greater than in previous years which was recognised through the broader based and more ambitious change programme.

The Chief Executive concluded by detailing the use of single status/equal pay reserves should it be necessary as part of the total workforce strategy.  During 2014 the Council planned to review and consult on a number of service models and their future shape from 2015/16 onwards.  This would be politically led to consider options where future budget efficiencies would be drawn from.

            The Head of Finance detailed the formal consultation required on the draft revenue budget proposals.  A number of Overview & Scrutiny Committee meetings had been arranged for the week commencing the 28 January and they could be preceded by an all Member Workshop on the afternoon of the 27 January to consider the budget overview. 

            As the Chief Finance Officer, the Head of Finance confirmed the reasonableness of the estimates shown in the budget proposals and said that she was satisfied that the Council’s Change Programme was reasonable and supported the Council’s ability to deliver an ongoing programme of change and efficiencies in the base budget.              

Cabinet Member supported the draft revenue budget proposals which they felt were achievable and commented on the investment to continue to provide services for residents of Flintshire. 

            RESOLVED:

(a)       That the initial budget proposals and ongoing work to close the budget gap be endorsed; and

(b)       That the initial budget proposals be referred to Overview & Scrutiny Committees for consideration.