Issue - meetings

Councillor Mark Elliott, Cabinet Member for Resources, introduced the item, making the following points:

·  This document is a holding pattern based on assumptions until the Chancellors statement in October when there may have to be readjustments.

·  The financial position of the Council is sound.

·  Children’s Services continues to present extraordinary challenges.

·  Adult Social Care – we have made the move to bring this back in house.

·  Heritage and Parking Services are performing well.

Panel members made the following points and asked the following questions:

Councillor Halsall asked if we are going to ask the Government about a tourist tax. The Cabinet Member explained that this was an idea that is being floated.

Councillor Halsall asked if the Cabinet Member believed that the Government recognised that a World Heritage City is in a unique position. The Cabinet Member explained that, being a relatively small authority, we need to emphasise our particular issues.

Councillor Hounsell asked why highways showed an underspend when there is so much work to do. The Executive Director (Operations) explained that the Highways cost centre is a mix of income and expenditure. The figure showing an underspend is showing income rather than a reduced spend. She gave assurance that we are on track in terms of revenue and capital.

Following a question from Councillor Treby, the Cabinet Member explained that he would be surprised if there was an underspend on revenue. Regarding capital expenditure – there may be an underspend as we want to have a better understanding of the work to be delivered. The Executive Director (Sustainable Communities) explained that a more professional delivery function is being developed regarding the capital programme and sometimes there is a proactive decision to delay a capital spend.

Councillor Treby asked if it would be better to budget slightly higher regarding revenue and slightly lower for capital. The Executive Director explained that an underspend is budgeted regarding capital.

Councillor Hughes stated that he was reassured that the issues in Children’s Services are being tackled. He asked if the Heritage Business Plan had been updated to show the latest figures. The Executive Director stated that she would get back to the Panel to explain the discrepancy.

Councillor Hughes stated his concerns about supporting businesses especially in relation to North East Somerset parking charges. The Cabinet Member stated that economic development money is being invested in Midsomer Norton high street regeneration and he disagreed regarding parking charges. Councillor Hughes stated that the bulk of investment in the town is in the Market Square, this was a Heritage Issue. We would not have chosen that. He added that sometimes projects take away money from where it should have been spent. The Cabinet Member stated that he would not characterise this as a misspend. Decisions on where money is spent are not within his portfolio.

Councillor Moss stated that some of the investment in the Somer Valley is reliant on partnerships.

Councillor Hodge asked the following questions. Cabinet Member and officer responses are in  ...  view the full minutes text for item 99

The Medium Term Financial Strategy sets out the strategic direction and priorities for the Council as well as outlining the financial context and challenges the Council faces over the next five years and the strategy that will be used to inform its annual budget process.

Cllr Mark Elliott, Cabinet Member for Resources, introduced the report, moved the officer recommendation and made the following points:

·  The Medium-Term Financial Strategy is a key, underlying document which provides the framework for all the strategic planning of the council.  It sets out the current financial challenge we face, the strategic direction, and the financial priorities, and sets out our mechanisms for financing our activity.

·  It is a pre-cursor to the budget setting period and sets out what savings we believe will be required, and our approach to addressing predicted funding gaps.

·  Last year we set out a two-year balanced budget, but this is somewhat speculative until the new Chancellor’s budget on 30^th October.

·  One of the key challenges is the large ongoing demand on Children’s Services.  The increase in numbers of children in care, the increase in cost per child from external providers and the huge increases in numbers of children with Special Educational Needs, many of whom are using services provided by external providers.

·  The long-term fix must be, firstly, to put a stop to the back-door privatisation of social care for both adults and children.  Many services are run by for-profit private providers.  At the last cabinet meeting we discussed and agreed to use the Culverhay school site to build new Alternative Provision and SEND Schools.  Yesterday, the decision by Cllr May to repurpose Charlton House as a new Special Residential and Day School was published.  These kinds of decisions, which allow us to provide in-area, council run services, rather than commissioning out-of-area, privately run services, are key both to getting control of the budget and providing a better experience and service to our vulnerable children.

·  It is also important to work with our colleagues in the Health Service to develop much better mental health services for the most vulnerable children in our society.

·  We are taking action to bring the social care spending back under control, but there are no quick solutions, and this will require capital investment to improve the financial position over time. 

·  On the up-side our Heritage Services and Parking Services continue to perform very well.  In these incoming generating services, where we have much more control over our own destiny, we are showing how a well-managed, well-run council can use its assets to try to mitigate at least some of the enormous financial pressures we are facing elsewhere.  Without this income, those pressures in Children's Services would be felt even more harshly.

·  Things will continue to be difficult for local government financially.  However, we are taking action, putting in place the in-house services which will help alleviate the pressure in the long-run, and will continue to balance the books despite these pressures.

Cllr Paul May seconded the motion and made the following points:

·  The council has statutory duties set by national legislation which remains our commitment, but things change over time, so the primary aim is to live within our means, seek financial efficiency improvements, seek to improve income and  ...  view the full minutes text for item 48