Agenda item

Councillor Mark Elliott, Cabinet Member for Resources (supported by Andy Rothery, Chief Finance Officer (151)) introduced the report. The Cabinet Member explained that local government funding is pretty broken and that a number of Council’s have declared bankruptcy. He explained that Council Tax covers a third of the operating costs of the authority and other income comes from things we charge for. He stated that the pressure on budgets in social care is enormous. He explained that the budget would be finalised and agreed at Council in February 2024.

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

Councillor MacFie referred to the expenditure in adult and childcare and asked for assurances that this would be addressed. He asked that an item on the budget regarding childcare be brought to the Panel. The Cabinet Member agreed that an item on this aspect of the budget could be brought to the Panel in terms of what can be done regarding rises in this budget area.

Councillor Halsall stated that students who study in the city cannot then afford to live here. He asked if HMOs (Houses of Multiple Occupation) disadvantage the authority as they do not pay Council Tax. The Cabinet Member stated that Universities do add to the city but can be economically detrimental.

In response to a question from Councillor Simon regarding SEND funding, the officer explained that this funding came from the dedicated schools grant which is managed by the Council. The pressure is very high on this – the Council is part of a safety valve programme which is a funding package to help Council’s out of deficit.

Councillor Simon asked if there is a regional programme regarding accommodation for looked after children. The officer stated that a regional programme has not been adopted and that Councils are talking about how provision/properties can be brought into use.

Councillor Blackburn asked about the Revenue Support Grant and about what representations were being made in terms of a possible new Government. The Cabinet Member stated that Government funding had reduced from £31m down to £800k. He stated that conversations with potential future government could be more productive than any such conversations with the current Government. The officer explained that the F20 group (a group of authorities) had written to the government and are doing what they can to lobby.

Councillor Blackburn queried the fact that there was no mention of the Commercial Estate. The Cabinet Member agreed that a report on this could come to the Panel. He explained that the Commercial Estate was performing fairly well but not up to pre Covid levels. He added that rental values had fallen in Commercial properties. He is satisfied that officers are doing a good job.

Councillor Hodge asked what the social care contingency is. The officer explained that the social care reserve was put into last years budget so is no longer a reserve.

Councillor Hodge asked about budget re basing. The officer agreed across all services. Regarding budget adjustment, he explained that there had been risk assessment around pay.

Councillor Saini asked what the timeframe would be if we cannot close the funding gap. The Cabinet Member stated that the Council has to set a balanced budget every year.

Councillor Simon asked if an increase in planning fees could help. The officer stated that planning caseloads are volatile.

Councillor Henman pointed to the glimmers of hope around heritage services and asked if this income could be enhanced. The Cabinet Member stated that he is delighted that visitor numbers are not up to pre Covid levels but that spend per visitor is up. He assured the Panel that measures were being considered to sustain and increase this income. He added that the Fashion Museum will add to the heritage offering with its world class collection.

Councillor Hodge thanked the Cabinet Member for the detail in the report. The Cabinet Member credited officers who worked on it.

Councillor Moss stated that it is an extremely difficult time and made the following points (Cabinet Member/officer responses shown in italics):

·  Regarding the F20 group, can you share the membership with the Panel. The officer agreed.

·  Welcome a future item on Commercial Estate and business centre.

·  Heritage – some concern about simply driving numbers up as this may spoil the experience. The Cabinet Member agreed that the focus should be on the quality of the experience.

·  Regarding adult and children’s services – it would be great to come up with a solution.

·  License levy – scheme in Middlesborough could be good to look into. Also an accommodation/tourist levy – in Manchester there is a levy for hotel operators. The officer agreed to look into this.

The Chair thanked the Cabinet Member and officer.