Agenda item

 

The Commission considered a joint report of the Chief Executive and Director of Corporate Resources concerning the Medium Term Financial Strategy (MTFS) 2010/11 to 2013/14. A copy of the report, marked ‘B’, is filed with these minutes.

 

The Commission also considered a supplementary report setting out the comments of the Budget and Performance Monitoring Panel and the Overview and Scrutiny Committees 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 Deputy Leader of the Council – Mr. J. B. Rhodes CC and the Cabinet Lead Member for Corporate Resources – Mr. M. B. Page CC, who were attending for this item.

 

Following the publication of an online survey and the circulation of consultation material to members of the public on the budget proposals, the Commission was advised that:

 

• 127 responses to the online survey had been received, most of which had disagreed with the budget proposals. Many of the responses were in relation to the proposed reduction in the Council’s contribution to the Arts in Education Service;
  
  
• Six comments had been received in response to a consultation leaflet, all of which were in disagreement with the budget proposals.

 

During the discussion, the following points arose from discussion and questions:

 

General

 

(a)               There were risks associated with the delivery of challenging efficiency targets in the later years of the MTFS and it was therefore important going forward that robust project management was in place to manage the efficiency agenda. PricewaterhouseCoopers, the Council’s auditors would be undertaking a review of the governance and project management arrangements in place to deliver the required savings. In the event of a critical situation in regard to the Council’s finances, the Council’s priority would be the maintenance of service provision;

Adult Social Care Department (now ‘Adults and Communities’)

 

Breaking the Barriers Team

(b)               Concern was expressed in relation to the proposed review of Council investment in the Breaking the Barriers Team and the effect this would have on service users;

Eligibility Criteria

(c)               The proposed changes to the eligibility criteria would generate significant long-term savings. Concern was expressed in regard to those with ‘moderate’ needs who would now no longer qualify for services and would be signposted to the voluntary sector. This, coupled with proposals to reduce voluntary sector funding, may have an adverse effect on the capacity of voluntary organisation services to deliver signposting. It was noted that this issue would be considered again by the Cabinet, arising from a consultation exercise to be carried out in the summer;

Chief Executive’s Department

 

Voluntary Sector

(d)               The proposal for savings of £50,000 in 2010/11 would be realised through a £10,000 reduction in grant funding provided to Voluntary Action LeicesterShire and a further £5,700 reduction in contribution to each of the community hubs;

Children and Young People’s Service

 

Arts in Education

 

(e)               Concern was expressed in regard to the reduction in subsidy for the Service which would affect the provision of drama and dance education. It was suggested that there could be a compound effect of proposed savings on partners that were also suffering their own financial difficulties and having to make significant cuts to service contributions. The Director of Corporate Resources advised that the County Council was involved in ongoing discussions with key partners in regard to their respective budget positions in an effort to identify in advance any service budget shortfalls;

Adult Learning Service

(f)                 Issues relating to funding provided by partners, including the Learning and Skills Council, were also relevant to proposed savings in this area;

Community Services Department (now part of the ‘Environment and Transport’ Department)

The Stepping Stones Project

(g)               There was a proposed reduction in the County Council’s contribution toward The Stepping Stones Project. It was highlighted that there would be implications for the Project, given the likely reduction in district/borough council contributions.

 

It was moved by Mr. Hunt and seconded by Mr. Bailey:-

 

“That the Cabinet be advised of the Commission’s concerns in regard to the compound effect of the proposed savings on key services that were part-funded by partners who may also have to make savings and that the Cabinet be requested to give further consideration to the likely impact of these savings on service provision.”

The motion was put and not carried, 4 members having voted for the motion, 7 against with 1 member having abstained.

 

RESOLVED:

 

(a)               That the comments of the Budget and Performance Monitoring Panel and the Overview and Scrutiny Committees, together with those of the Commission be forwarded to the Cabinet for consideration at its meeting on 9 February;

(b)               That officers be thanked for providing comprehensive budgetary information in a timely fashion that enabled full consideration of the issues;

(c)               That officers be requested to provide further information in relation to savings being made in provision to the voluntary sector.