Agenda item

The Chairman emphasised that the Committee were considering the Medium Term Financial Strategy (MTFS) for 2013/14 to 2014/15 in advance of the Cabinet developing budget proposals for presentation in November.  The Committee would be considering the savings outlined in the MTFS and seeking to determine whether these were expected to be achieved.

 

The Deputy Leader of the Council and Cabinet Member for Resources and Performance, Councillor Thomas, and the Assistant Director of Strategic Finance, John Hooton, responded to questions from the Committee.  They were supported by the Leader of the Council, Councillor Richard Cornelius, the Cabinet Member for Adults, Councillor Rajput, and the Cabinet Member for Environment, Councillor Dean Cohen, for matters which related to their respective portfolios.   

 

The following questions were posed by the Chairman to the Deputy Leader of the Council and Cabinet Member for Resources and Performance:

 

·   Council Tax Freeze – referring to whether a Council Tax freeze could be achieved in the forthcoming financial year, the Committee were informed that a 2.5% Council Tax increase had been included in the base budget for 2013/14 onwards.  A Council Tax freeze could only be achieved if an additional £4 million of savings were identified in the budget.

 

·   One Barnet Savings – the Chairman queried whether the Cabinet were confident of achieving the projected savings from the One Barnet Programme.  Members were advised that these would be met or exceeded, with a total of £30million of savings expected to be achieved.

 

·   Friern Barnet Library – it was questioned whether the projected £100K saving had been achieved following the closure of Friern Barnet Library as part of the Libraries Strategy.  The Committee were advised that the £100K savings had achieved and that these related to savings in staff costs.  It was noted that the capital receipt from the sale of the premises was required to fund the upgrade to the remainder of the libraries network. 

 

·   Fees and Charges – the Committee were informed that there was no policy in place to link fees and changes to inflation.

 

·   Traffic Management, Moving Traffic Violations – the Chairman questioned whether the proposal to introduce CCTV enforcement for yellow box and banned turn violations would proceed.  The Cabinet Member for Environment confirmed that it would. 

 

·   Council Tax Support Scheme – the Deputy Leader of the Council and Cabinet Member for Resources and Performance reported that the estimated cost of the changes to the Council Tax system was estimated to be £4.4million.  Officers had been working to contain the additional costs within the Council Tax budget. 

 

·   Housing Reforms – the Committee noted that the recent Housing Reforms would result in council housing tenants being charged up to 80% of market rents.

 

·   Council Funded Voluntary Sector Groups Reserves – Officers reported that the Council would obtain details of the financial status of voluntary sector organisations if they applied for grant funding.

 

·   Schools Balances – the Chairman estimated that schools were holding between £10-12 million of local authority funding in their reserves.  The Deputy Leader of the Council and Cabinet Member for Resources and Performance undertook to provide figures on schools reserves to the Committee.  The Committee noted that the London Academy had been working with the Council on the Early Intervention and Prevention Project and had been utilising some of their reserves to fund this work.  Members noted that schools reserves were often off-balance sheet due to accounting rules.    

 

·   Blue Badges / Freedom Passes Administration Fee – the Committee were informed that the Council were currently consulting on the introduction of the £10 administration fee for blue badges.  Consideration would be given as to whether this could be extended to Freedom Passes.

 

Adult Social Care and Health

 

Members questioned how a £132,000 reduction in the contract value for Generic Floating Support could be justified when the recent decision to reduce sheltered housing support had been based on the investment in this area.  The Cabinet Member for Adults and the Deputy Director of Adult Social Care advised the Committee the saving would be achieved through better negotiation and contract monitoring with supported living providers.  There would not be any reduction in service level. 

 

Chief Executive’s Service

 

In relation to libraries, the Committee noted that the Council were anticipating achieving £130K savings by replacing staff with volunteers.  Members noted that the £100K saving in relation to the creation of a new landmark library would be dependent on successful negotiations with the Arts Depot. 

 

Children’s Services

 

Responding to a question regarding the planned reductions in the Early Intervention and Prevention Service, the Deputy Leader of the Council and Cabinet Member for Resources and Performance emphasised that the majority of work in this area had been completed.  Evidence of achievements and savings were detailed in Performance Monitoring and Outturn Reports.   

 

With reference to the Youth Offer, the Deputy Director of Children’s Services advised the Committee that the Council’s statutory duty was to have a regard to providing activities for young people.  The Council were discharging this duty was by targeting resources in areas where there was an identified need.

 

Members were informed that the £250K saving earmarked for the Pupil Referral Unit would need to be reconfigured as alternatives were being considered.

 

The Committee expressed concern that there was a proposed reduction in the provision of domestic violence services under the budget heading of Commissioned Services for Venerable Children and Families. 

 

Commercial Services

 

The Committee questioned how the reduction in costs of maintaining properties pending sale would be achieved.  The Deputy Leader of the Council and Cabinet Member for Resources and Performance informed Members that when properties or land were sold, maintenance was no longer required.  The Committee noted the requirement for the Council to manage its estates as efficiently as possible. 

 

In relation to the £393K saving in relation to Transformation of the Estates Service, the Committee were advised that this would be achieved by the service being managed more efficiently by the New Support / Customer Services Organisation (NSCSO) service provider.

 

Referring to the £1.1million saving in accommodation costs in 2014/15,  Deputy Leader of the Council and Cabinet Member for Resources and Performance reported that this was expected to be achieved by withdrawing from Barnet House and renegotiating rents at North London Business Park. 

 

Corporate Governance

 

The Assistant Director of Strategic Finance undertook to send Councillor Rayner details of the £9K saving in the Crime and Anti-Fraud Team.

 

The Leader of the Council undertook to remove the £88K saving in 2014/15 relating to Deletion of Political Assistants from the Corporate Governance budget reductions.

 

The Committee were informed that the £20k savings in Members allowances and a reduction in the Member development budget related to a saving in Member training.

 

Deputy Chief Executive’s Service

 

The Committee noted that the £80K savings for Trade Unions in 2014/15 related to reduced accommodation costs.

 

With reference to the £154K increased income from deposits, the Committee were informed that this was dependent on increases in business rates.  The Assistant Director of Strategic Finance reported that changes in the Council’s Treasury Management Policy would provide the Council to with more freedom to increase the size and term of investments to achieve better returns, without exposing the Council to a higher level of risk.

 

Environment, Planning and Regeneration

 

The Committee were informed that the renegotiation of the May Gurney contract was expected to achieve up to £1 million of savings. 

 

Street scene changes would be achieved by implementing changes to collection arrangements which would result in fewer vehicles being required. 

 

The Cabinet Member for Environment reported that the £7K income from charging in the seven remaining free car parks would be removed from the 2013/14 savings column. 

 

Members noted that the Special Parking Account had been experiencing service pressures which may impact on forecasted income in this area.  The Committee were referred to the Quarter 1 2012/13 Performance Monitoring and Outturn which would provide detail on actual performance in this area.

 

One Barnet Savings

 

Members commented on the lack of narrative relating to the One Barnet savings detailed in Appendix B.  The Deputy Leader of the Council and Cabinet Member for Resources and Performance assured the Committee that savings were on target to be achieved or exceeded.  Any variations in the figures from those previously reported where attributed to re-profiling.  The Committee requested that additional information be provided in relation to savings under each of the Wave 1 Projects. 

 

RESOLVED that:–

 

1.      that the comments and recommendations of the Committee, as outlined above, be referred to the Cabinet for consideration in their development of the  Council budget and Medium Term Financial Strategy

 

2.      the Leader of the Council be requested to provide the Committee with an update on the progress of the Community Library at Friary Park House.

 

3.             the Deputy Leader and Cabinet Member for Resources and Performance be requested to provide information on schools reserves to the Committee.

 

4.             the Committee recommend that the Cabinet give consideration to charging a £10 administration fee for Freedom Passes.

 

5.             that Cabinet note the concern of the Committee in relation to the proposed reduction in the provision of domestic violence services

 

6.             the Assistant Director of Strategic Finance be requested to send Councillor Rayner details of the £9K saving in the Crime and Anti-Fraud Team in the Corporate Governance directorate.

 

7.             the Committee note the undertaking of the Leader of the Council to remove the £88K saving in 2014/15 in the Corporate Governance directorate budget relating to the Deletion of Political Assistants.

 

8.             the Deputy Leader of the Council and Cabinet Member for Resources and Performance be requested to provide additional information to the Committee on the savings under each of the One Barnet Wave 1 Projects.