Agenda item

The Cabinet Member for Resources will give a presentation and answer questions.

The Cabinet Member for Resources ( Malcolm Hanney) introduced this item and informed the meeting that the Council were planning for a 30% reduction in government funding over the next four years. However, the Council had managed to achieve a balanced budget in recent years and had £23m in reserve. Savings of £15.5m were required in 2011/12 of which £7.3m would come from efficiency savings, bringing the total of efficiency savings over the period 2007/12 to £25m. Actual cuts were £2.6m or about 1% of gross expenditure with very limited impact on frontline services, particularly for the vulnerable. Council tax rates had been frozen. With regard to the impact on employees, 150 posts would be lost during 2011/12 out of a total planned reduction of 300 posts over the next 3 years. Of these, only 73 were redundancies (67) or early retirements (6); there were only 24 compulsory redundancies. The Council were much better placed than most councils as a result of forward planning and past prudence.

The Council are planning £200m capital investment over the next 5 years including including Keynsham Town centre regeneration (£33m) as well as more investment in the public realm, infrastructure, leisure facilities in Bath, affordable housing and schools.

The Council was in close partnership with the PCT and were working with the emerging GP commissioning consortium. The social care costs are currently within budget and not overspent. In addition, the West of England was a major generator of Gross Domestic Product (GDP) and it was hoped that this would serve to attract government and private sector investment in the region.

Overall, for 2011/12, Bath and North East Somerset was in a better position than most other councils, but by 2013/14, the financial situation would be more concerning. Academies would be in place, there would be benefits changes and the joint health and social care provider would be independent. Councils would move increasingly to become ‘core’ or commissioning organisations which will impact on the overall structure, particularly affecting support services. In conclusion, Councillor Hanney informed the meeting that the budget had been passed by full Council on 15^th February with no material cuts to frontline services. 

A representative from Saltford asked whether the capital being raised was achieved by selling properties or by increased borrowing. Councillor Hanney replied that the Council will be increasing borrowing but will also be developing a partnership for the Commercial Estate working with an organisation(s) which share the Council’s vision for the future. It was planned to invest in the public realm, which will enhance the City centre and the Council’s retail property interests. The retail sector in Bath is currently relatively healthy with a constant demand for shop premises. In addition, the local knowledge and creative industries are now larger than tourism and retail combined, so there are many opportunities for growth. The corporate estate itself generated £14m income and was worth well over £250m. 

A representative from Bathford asked whether the funding for the Bath Transport Package would come from resources or asset sales.  Councillor Charles Gerrish replied that the final submission for the Transport Package would be in the autumn. The government had made it clear what share they expected from the Council towards the project and so £9m has been allocated out of capital as B&NEs’ contribution. Councillor Hanney added that this would have no impact on reserves.

A representative from Batheaston commented that the Council had decided arbitrarily to withhold money from the Batheaston youth club contrary to the guidelines in the Parish Charter. Councillor Hanney replied that the Council had to prioritise certain areas. Money had been allocated to Radstock and Keynsham youth projects and that there was other funding which could be bid for, including possibly through Community Empowerment. The representative form Batheaston repeated that the parish council had not been consulted and that the club would close at the end of March.  The Chief Executive (John Everitt) added that there was a shift in how the Council delivered youth services and that there were reasonable sums available to parishes for this purpose. He assured Batheaston Parish Council that an officer would be in contact about this issue.