Agenda item

Councillor Andy Hull, Executive Member Finance, Performance and Community Safety was present for discussion of this item. Steve Key, Service Director Finance was also present.

During discussion of the report the following main points were made –

·         It was noted that there is an anticipated overspend in Environment and Regeneration of £1.9million, and that management action is taking place, in order to try to reduce the overspend. However, there is an underspend in Resources of £0.585million, resulting in a projected £1.3million overall overspend at year end, and it was stated that any overspends at year end would be covered by drawing down from the ongoing corporate contingency budget of £2million

·         Members were informed that, in addition to the ongoing corporate contingency budget, the Council has a one off contingency funding of £6.086million. The Executive Member Finance, Performance and Community Safety informed Members that it is proposed that, in order to improve the Council’s overall financial resilience over the medium term, that the Council’s General Fund balances (excluding school’s balances), be replenished back to the previous level of 5%, over the course of the medium term financial strategy. In addition, it is proposed to transfer the earmarked capital reserve, as capital contingency funding, for known budget pressures and risks, in the agreed capital programme (£4.086million)

·         It was noted that the forecast net variance for the Housing Revenue Account is a break-even position

·         Members expressed concern that as in previous years, there continued to be a significant overspend in Environment and Regeneration. Members stated that whilst there had been a re-organisation of services, under the Village Principle, this had been intended to achieve savings but was actually costing more. Councillor Hull responded that there was significant sickness in Street Environment Services that had necessitated the use of agency staff as cover, and that an HR expert on sickness is being employed to investigate this and recommend appropriate measures. Separately, measures had also had to be taken in response to ‘random testing’ that had been introduced

·         The view was expressed that there should also be a focus on whether management were enforcing the existing sickness procedures effectively

·         It was noted that whilst the budget for E&R was challenging it was felt to be achievable by Finance and E&R management

·         Members were of the view that PPS Committee should investigate the specific reasons for the overspends in E&R, and other areas of potential underachievement of savings, including if the savings envisaged from the Village Principle were achievable

·         Members also expressed the view that staff survey results should be analysed, in order to try to ascertain if there were any specific factors affecting sickness and absence in Street Environment Services

·         In response to a question as to the lower savings on the wi-fi concession than had been anticipated, it was stated that this was because the company concerned had had technical problems, however the Council had received an up-front payment

RESOLVED:

(a)  That the Executive Members Finance, Performance and Community Safety and Environment and Transport be requested to respond to the points raised above and report thereon to a future meeting of the Committee

(b)  That if Members had any further areas that needed investigation these be notified to Democratic Services who could raise these with the Executive Members for response