Agenda item

To review the revised draft budget changes identified and discuss any further changes required in order for the Council to move towards a balanced budget for 2018/19

The Committee had before it and NOTED a report * from the Director for Finance, Assets and Resources in order that the Scrutiny Committee review the draft 2018/19 budget and make any necessary comments/recommendations to the Cabinet to be considered at its meeting on the 1 February 2018.

The officer outlined the contents of the report explaining that since the first round Cabinet and PDG meetings the Finance team and service managers had been revisiting a range of budgets to deliver more savings or increase income levels. He outlined the table below:

The officer explained that it was encouraging that the Council had managed to significantly close the budget gap of £617k discussed at earlier meetings, even after the potential pay award adding an additional £116k and new legislation relating to Homelessness Reduction adding circa £50k to the budget.

The officer informed Members that moving forward probably the biggest concern for the future was the New Homes Bonus arrangements that had seen circa £0.7m removed from the funding source on an annual basis, coupled with the threat that further revisions may be made from 2019/20 onwards.

Discussion took place regarding:

·         Council house stock and the right to buy scheme which resulted in reduced rental income;

·         Grounds Maintenance figures would show an increased income from the Housing Revenue Account (HRA) regarding grass cutting on HRA land.

·         Staff movements which had resulted in increased efficiency;

·         Successful funding bids for the Culm Garden Village;

·         Car parking and a pending report from the Economy PDG;

·         Expenditure on toilets;

·         An increase in the number of apprentices, particularly in the skilled trades area;

·         Potential reduction to income from the sale of recycled plastics following changes to the Chinese market;

·         Future refurbishment to areas of Phoenix House;

·         An assurance that funds highlighted for redevelopment would only be used on receipt of a robust business case;

·         The use of external contractors for Legionella checks and future plans to bring this in house.

The officer reminded Members that in order to conclude the statutory budget setting process, the updated draft budget position would go to Cabinet before being agreed at Full Council on the 21 February 2018. During this period officers would continue to identify and examine further savings possibilities that could reduce the current budget gap.

Officers were commended for the thorough work that had been undertaken to date to reduce the budget gap.

Note: - * Report previously circulated and attached to Minutes.