ITEM No. 5
1st
Budget Scrutiny Meeting
September 2004
Action Sheet
Present
Members: Councillors Jolley (Chair), Dawson, B. Murphy, MacDonald, Clague, Pennington and Salmon
and Councillors Hinds and J.Murphy (invitees)
Officers: John Spink (Corporate Services), Russell Bernstein, Peter Kidd (Scrutiny Support)
Apologies: Councillors Garrido and Jones.
ITEM
Action Sheet and
Matters arising.
Revenue Budget
Outturn Report Presented by John
Spink
Revenue Budget
monitoring 2004/05
Presented by John
Spink
ACTION REQUIRED
The Action sheet was accepted.
John Spink mentioned that this committee’s suggestion that the use of schools
budget be redistributed to Community Committees aligned with population statistics
was accepted by Cabinet and will be implemented with the proviso that
adjustments will be phased in over the next few years to smooth the impact.
Reports of the Director of Corporate Services
Following the provisional outturn presented to the Committee in June, this report
detailed the final revenue position, which showed a net underspend across
services. Overall the performance is satisfactory, on target with the medium term
financial strategy. A slightly higher than planned contribution was made to
reserves. The underspend on the Delegated Schools Budget will be available for
use in future years.
The DSO trading account was in surplus and although the Housing Revenue
Account showed a deficit this is largely due to a repairs commitment carried over
from the previous financial year.
The report also identified the carry forward of underspent balances by Directorates
in line with the scheme reintroduced this year.
Similarly the Community Committees underspend will be carried forward as normal.
John provided detail of the current revenue budget monitoring, the key budget risks
and the progress on previously agreed budget savings 2004/05.
The majority of services are performing well, inline with the budget or more
favourably than expected.
Community and Social Services – the Committee recognised and praised the work
that has been done to reduce the number of children taken into care, the area is a
1
RESPONSIBLE
MEMBER / OFFICER
John Spink –
Community
Committee budgets
will be adjusted
accordingly
John Spink
John Spink
TIMESCALE
This is an
annual
report
Regular
reporting
Item
ITEM
ACTION REQUIRED
significant risk and continues to be monitored closely.
Expenditure on agency staff was highlighted as another area needing close
monitoring, this led to a request from the Committee for a report into agency staff
costs across the city council.
Education – as well as previously raised concerns around the costs of IT
equipment, advertising vacancies and the lack of income from Lledr Hall, (when
closed for refurbishment) the report identified overspend within the Pupil Referral
Unit, LEA schools and the central services budget. Members requested that the
Director of Education & Leisure provide detail of the steps being taken to contain
spending and minimise the impact on services.
More detail on the creation of a separate budget for Marketing and
Communications will come to the committee as soon as it is completed.
DSO’s and DLO’s are generally favourable and there are a number of favourable
corporate issues emerging.
Capital Outturn
2003/04 Presented
by John Spink
The final position shows a significant reduction in both resources and expenditure
since estimates were reported in March. The main reason for this was outlined in
the report, chiefly this could be put down to timing, the slippage of both expenditure
and matching resources.
Members were pleased to hear that Education and Leisure were taking steps to
improve the management of their capital programme. They were concerned
however that pledged funding from English Partnerships had not materialised to
replace council resources invested in the Private Sector Housing programme. A
report on the consequences of the shortfall in funding is due to Cabinet shortly,
Members requested that more detail should come to the next Budget Scrutiny
committee.
2
RESPONSIBLE
MEMBER / OFFICER
John Spink
TIMESCALE
October /
November
Jill Baker / Cllr Mann
October
John Spink
October
ITEM
ACTION REQUIRED
Capital Programme
monitoring 2004/05
Presented by John
Spink
As a consequence of the capital outturn and a capital receipt deferred to 2005/06
there is a shortfall in resources. This size of this shortfall will be significantly
reduced if the funding for the Private Sector Housing programme is resolved.
The programme will however require careful monitoring throughout the year
Support Services
and SLAs - a
progress report
Presented by John
Spink
Following a request by Members in June, John presented a report updating the
progress against savings proposals to be made by Corporate Services in relation to
the review of Support Services and Service Level Agreements. For 2004 the only
saving which is behind target is related to the anticipated income from citizenship
ceremonies. This will continue to be monitored and should it fail to reach its target
additional income sources have been identified to make up any shortfall.
The Directorate has already taken steps to identify additional savings in 2005/06
Full details of these proposals will come before the Committee in due course, as
part of the budget process.
This report outlined the key issues from the CSR and other summer
announcements from the Government. Parts of the CSR, changes to the Formula
Spending Share (FSS), and the level of Aggregate External Finance, and the
possible impact on Local Government Services were outlined. The effect of the
introduction of 3-year revenue and capital settlements in 2006 will help authorities
develop long term plan. The rationalising of some government funding, the
establishment of Regional Centres of Excellence to drive efficiencies and the
continuation of the Neighbourhood Renewal Fund to 2007/08 are seen as positive
steps.
Other announcements ;
The Gershon Efficiency Review – a major challenge for
local government to make savings. Currently Corporate Services are considering a
“Think Efficiency “ initiative to identify and promote efficiency in line with the areas
identified in the review.
Education Funding – Schools funding will switch from FSS
to specific grant from 2006/07. The impact of this will only become clear later in the
year, further details will follow when available.
The Balance of Funding Review – an independent enquiry
Comprehensive
Spending Review
(CSR) and other
announcements
Presented by John
Spink
3
RESPONSIBLE
MEMBER / OFFICER
John Spink
John Spink
Further reports will be
presented as
situations develop
TIMESCALE
Regular
reporting
Item
Programmed
as
appropriate
ITEM
ACTION REQUIRED
RESPONSIBLE
MEMBER / OFFICER
TIMESCALE
into local government funding to be established, reporting in 2005, to look at,
among other things, Council Tax reform and implications of possible elected
regional assemblies.
Local Area Agreements – there will be a closer alignment
of funding streams though it will be 2006/07 before it impacts on Salford.
Among other announcements the use of Census data has been postponed to
2006/07 for the purposes of calculating the FSS
Further reports will come to Budget Scrutiny as more detail on the effects and
impact of these various announcements become clear.
Budget
Consultation
Presented by John
Spink
Following discussion between the Chair and the Lead Member for Corporate
Services, a report was submitted outlining the initial proposals for this year’s public
consultation on the Budget. Having agreed in principal to this there will be a more
detailed report on the process at the next Budget Scrutiny meeting.
Workplan
A draft workplan was circulated to Members for approval this will be amended to
incorporate issues raised at today’s meeting and prepared in more detail for the
next meeting.
Any Other
Business
There was no other business meeting closed at 12.30
Chairman
Assistant Director
Scrutiny Support Officer
Cllr. D. Jolley
Russell Bernstein
Peter Kidd
0161 787 7259
0161 793 3530
0161 793 3322
4
John Spink /
Geoff Topping /
Russell Bernstein /
Peter Kidd
October
Peter Kidd
Regular
reporting
Item
If you have any queries, please don’t hesitate to contact Peter Kidd.
Date of Next Meeting: 6th October 2004 - 9.30am
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