Agenda and minutes

There were no declarations of interest.

There were no questions from the press and public.

The Head of Corporate Finance gave a presentation on the Medium Term Financial Strategy for 2005/06.  Copies of the Pressures and Growth Bids from the Medium Term Financial Strategy and the new Council Priorities were circulated for Members present.

The presentation focused on:-

• The Context of the Budget 2005/06
• Revenue Budget 2004/05 – A reminder
• Budget 2004/05 by Programme Area – A Reminder
• One Off Grant and Savings
• Revenue Budget 2005/06
• Priorities for Expenditure
• “A” List Growth Bids/Unavoidable Pressures
• “B” List Growth Bids
• “C” List Growth Bids
• Other Bids/Pressures/Uncertainties
• Options to Bridge the Gap
• Programme Area Gershon Proposals
• Medium Term Financial Strategy 2006/07 Projections
• Medium Term Financial Strategy 2007/08 Projections

The Scrutiny Panel asked a range of questions, several being around the efficiency proposals arising from Sir Peter Gershon’s review of public sector efficiency (that has identified approximately £6½billion of savings that could be made in back office, procurement, transaction service and policy-making functions).  Members were concerned that it was not appropriate to apply a blanket savings target of 2.5% - particularly in Leisure Services areas, where there was a relatively small back office function and therefore less opportunity for savings.

Other questions/comments were in respect of:-

(a)                Collection Fund Surplus (currently at £2.4 m) – what has been the 5 year trend?

(b)                Contingency funds/reserves – how much is held in the various accounts?

                  The District Auditor requires the Council to risk assess the reserve fund.  By the same token, contingency funds (including the new one proposed by the Chief Executive) should be risk-assessed.  Who will be doing this?

(c)                Motorcycle nuisance post – is funding for this on the “A”, “B” or “C” list of Economic and Development Services?

(d)                Local Public Service Agreement (LPSA) – how much is the Council expecting to receive this year in terms of reward grant?

(e)                Corporate IT Strategy – will this deliver the required Gershon savings with respect to computerising back office functions?

(f)                  Gershon Savings – Members are not happy with the 2.5% top-slicing approach.  Culture and Leisure does not have sufficient back office functions to make these efficiency savings.  Members are concerned that front line services will be hit.

(g)                Gershon guidance/criteria – when does the Council expect to receive this?

(h)                Gordon Brown’s £1 billion to keep council tax down (RMBC share = £3 m) – Members are concerned that if this is a one-off, council tax will have to rise even more in 2006/07.

      (i)         FSS (Formula Spending Share) – Members requested a breakdown by                       programme area.

In response to a query regarding the passporting of budgets directly through to schools, it was confirmed that this course of action was likely to be recommended to the Council by Cabinet.

Resolved:-  (1)  That the Head of Corporate Finance be thanked for his presentation.

(2)                    That a further report be submitted to the January 2005 meeting of this Scrutiny Panel with more detailed proposals on the ECALS budget for 2005/06. 

(3)  That Scrutiny be involved in  ...  view the full minutes text for item 72.

Resolved:-  That the minutes of the meetings concerning decisions made by the Cabinet Member for Education, Culture and Leisure Services, held on the following dates, be received:-

(a)                12^th October, 2004

(b)                19^th October, 2004

(c)                26^th October, 2004

(d)                2^nd November, 2004

(e)                9^th November, 2004

(f)                  16^th November, 2004

(g)                30^th November, 2004

Resolved:-  That the minutes of a meeting of this Scrutiny Panel held on 25^th October, 2004 be received and accepted as a true record.

Resolved:-  That the minutes of the meetings of the Performance and Scrutiny Overview Committee held on 8^th and 22^nd October, and 12^th November, 2004.

The Panel noted the content of the minutes of a meeting of the above Committee held on 14^th October, 2004.