Agenda and minutes

Mr. D. R. Parsons CBE CC             | (For Minute 158)

Mr. N. J. Rushton CC                        |

The minutes of the meeting held on were taken as read, confirmed and signed.

The Chief Executive reported that no questions had been received under Standing Order 35.

The Chief Executive reported that no questions had been received under Standing Order 7(3) and 7(5).

There were no urgent items for consideration.

The Chairman invited members who wished to do so to declare any interest in respect of items on the agenda for the meeting.

Mr. D. R. Parsons CBE CC, Leader of the Council and Mr. N. J. Rushton CC, Deputy Leader of the Council, each declared a personal prejudicial interest in the Medium Term Financial Strategy (MTFS) 2011/12 – 2014/15 (minute 158 refers), as they had attended the meeting of the Cabinet when this item was discussed.

The following members each declared a personal, non-prejudicial interest in respect of all items on the agenda as members of district/borough or parish councils:

Mr. R. Blunt CC
Mr. G. A. Boulter CC

Mrs. R. Camamile CC
Mr. S. J. Galton CC

Dr. S. Hill CC
Mr. Max Hunt CC

Mr. P. G. Lewis CC*

Mr. M. B. Page CC*

Mr. B. L. Pain CC
Mrs. P. Posnett CC

Mr. R. J. Shepherd CC*

* Dr. R. K. A. Feltham CC, together with those members highlighted above, each declared a personal, non-prejudicial interest in respect of any discussions on the MTFS item that concerned concessionary travel as holders of bus passes (Minute 158 refers).

Mr. B. L. Pain CC further declared a personal, prejudicial interest in respect of the MTFS item as the owner of a taxi company. He indicated that he would leave the room if the debate on this item strayed into the area of concessionary travel and issues such as taxi vouchers (Minute 158 refers).

There were no declarations of the party whip.

The Chief Executive reported that no petitions had been received under Standing Order 36.

The Leader of the Council and the Deputy Leader have been invited for the debate on this item.

The Commission considered a joint report of the Chief Executive and Director of Corporate Resources concerning the Medium Term Financial Strategy (MTFS) 2011/12 to 2014/15.  A copy of the report, marked ‘B’, is filed with these minutes.

The Commission also considered supplementary reports setting out the comments of the Overview and Scrutiny bodies on the Medium Term Financial Strategy relating to their respective service areas.  A copy of the supplementary report, marked ‘BB’, is also filed with these minutes.

The Chairman welcomed to the meeting the Leader of the Council, Mr. D. R. Parsons CBE, CC and the Deputy Leader of the Council, Mr. N. J. Rushton CC who were attending for this item.

During the discussion, the following principal points were made:

General

(i)           The Director of Corporate Resources advised the Commission that in a written statement the Under Secretary of State had announced the details of the final local government finance settlement for 2011/12.  This would be the subject of a debate in the House of Commons on 9 February.  The changes in the County Council’s Formula Grant figure for 2011/12 and provisional figure for 2012/13 were as follows

2011/12 Reduction in Formula Grant of £51,000

2012/13 Increase in Formula Grant of £26,000.

(ii)         In recognition of the particular issues in relation to the CYPS Budget as a result of the significant loss of specific grants, the Leader had indicated at the meeting of the Cabinet on 19 January that £5 million from the Council’s reserves could be used to ease the transition of services that were currently funded by specific grant.  The detail of how this £5 million would be allocated was yet to be determined and a report would be submitted to the Cabinet in due course.  The Director also advised that he was looking to use the underspend in the current financial year towards the £5 million reserve to be used for the CYPS budget.

(iii)       The Leader advised the Commission that, although this was a difficult budget settlement which required significant savings of the County Council, the majority (70%) of which would be met from efficiency savings, the proposed budget also contained significant growth for Adult Social Care (£26 million) and Children in Care (£2 million).  He also welcomed the additional £6.4 million NHS funding which would be used to mitigate some of the proposed reductions and invest in new services to benefit health.

(iv)        In formulating the budget, the views of Leicestershire residents had been taken into account. The Leader was keen to let it be known there was growth in the budget. In addition to the items mentioned by the Director of Corporate Resources, he particularly welcomed the investment of £500,000 in Big Society initiatives and the provision of £1.5 million on a one year basis for repairing winter damage to roads. Overall, the Leader was reasonably confident that it would not be necessary to make major cuts in front-line services.

(v)          The Deputy Leader advised the Commission that the one of the key risks of the MTFS was inflation.  Provision of 3.3% had been made in the Budget but it was intended to hold this as a central contingency, recognising that there would be some services for which inflationary pressures would be greater than 3.3%.

(vi)        The development of a four year MTFS which had commenced in 2010/11 had meant that the County Council was in a better position than most to deal with the significant reductions in public spending.

In response to questions, the Commission was advised as follows:

(vii)      The decision to use reserves to support the loss  ...  view the full minutes text for item 158.

A copy of the Cabinet report is attached for the Commission’s consideration.

The Commission considered a report of the Chief Executive, which was to be considered by the Cabinet at its meeting on 8 February, updating members on the development of a new approach to support economic development in the Leicester and Leicestershire sub-region, including the establishment of a

Local Enterprise Partnership (LEP) and a Single Delivery Vehicle (combining Prospect Leicestershire and Leicestershire Promotions). A copy of the report, marked ‘C’, is filed with these minutes.

Arising from discussion, the Chief Executive advised the Commission as follows:

LEP

·                    The existing and future arrangements for economic delivery ensured that the needs of rural areas were taken account of as the Leicestershire Rural Partnership was an integral part of the existing economic arrangements and it was expected that this would continue;

·                    The LEP would be a strategic body, but had no direct funding. The Board would have a private sector majority and it was anticipated that a high profile Chairman would soon be appointed.

Leicestershire Promotions/Prospect Leicestershire

·                    The tenancy for the building to be vacated by Prospect Leicestershire was held by the County Council with any future liabilities to be shared with the City Council. The Commission was assured that arrangements for entering into a new sub-tenancy were being actively pursued;

·                    It was confirmed that the articles and memorandum of association of Leicestershire Promotions would ensure that any assets would be transferred to the new single delivery vehicle.

It was recognised that the new single delivery vehicle should be allowed to embed before any further scrutiny of the arrangements. In respect of the LEP, a suggestion was made for scrutiny to take place on a cross-authority basis.

RESOLVED:

That the report be noted.

The Chairman and Chief Executive will deliver an oral update on this item.

The Chairman reported that, following the previous meeting of the Commission, every effort had been made to organise a meeting with the Leader or his representative concerning the extent to which “subsidiarity” would be adopted as an approach in the voluntary sector single delivery vehicle (minute 144 refers). Unfortunately, due to the demanding budget schedule, it had not been possible to convene a meeting.

RESOLVED:

That the Commissioners continue to pursue a meeting with the Leader or his representative on this issue and that the result of any meeting be reported back to the Commission at its next meeting on 2 March.

The next meeting of the Commission is scheduled to take place on Wednesday 2 March 2011 at 2.00pm.

It was NOTED that the next meeting of the Commission would be held on Wednesday 2 March at 2.00pm.