Agenda item

To approve the content of this report to form the basis of further public and partner consultation on these financial and service changes, to inform the final Budget-setting.

Report of the Acting Strategic Director Finance & Corporate Services.

Advisory Cabinet Member – Councillor Alam.

Minded to Grant Decision:-  (1)  That the content of the report to form the basis of further public and partner consultation on the financial and service implications of the Council setting a balanced Budget from 2016/17 onwards be approved.

(2)  That it be confirmed the Council is minded to take up the flexibility of a 2% levy on Council Tax for Adult Social Care, following Central Government’s Provisional Local Government Settlement announcements, to support a balanced budget in 2016/17 and ongoing service modernisation.

(3)  That specific, detailed consultations with service users, delivery partners and contractors as appropriate are ongoing (including further Equalities Assessments) be noted.

(4)  That detailed consultation with staff and Trade Unions on the workforce implications of these proposals be ongoing.

Reason:-  To note the financial and service changes that officers are continuing to work on forming the basis of further public and partner consultation in order to deliver a balanced budget for the Council from 2016/17, in line with the outline Medium Term Financial Strategy (MTFS) and the new vision for the Council, prior to the formal Budget-setting report for 2016/17 which would be presented to the full Council Meeting on 2^nd March, 2016.

Date of Publication of the Minded to Grant Decision:- Wednesday, 20^th  January, 2016.

Representations upon the decision are invited from Councillors, members of the public, partner agencies and any interested body or individual within five working days from the date of publication and must be received by Debbie Pons debbie.pons@rotherham.gov.uk no later than 5.00 p.m. on Wednesday, 27^th January, 2016.

Date Representations Received:-  None.

Representations Received:-  None.

Date of Commissioner Sir Derek Myer’s Final Decision:-   Thursday, 28^th January, 2016.

Consideration was given to a report presented by the Leader where he referred to the impact on budgets of the savings required over the next three years and how this would be managed requiring a number of financial and service changes that officers were continuing to work on in order to deliver a balanced budget for the Council from 2016/17.  This was in line with the outline Medium Term Financial Strategy (MTFS) and the new vision for the Council, prior to the formal Budget-setting report for 2016/17 which would be presented to the full Council meeting on 2^nd March, 2016.

Other Advisory Cabinet Members were invited to comment on their own area of responsibility in terms of the changes and proposals moving forward:-

·             Councillor Alam commended the report to the Commissioner and in doing so referred to the work being undertaken by officers, including Trades Unions and staff.

·             Councillor Yasseen highlighted the equality impact assessments for library services and where possible how the impact on services was minimised.  Customers were being encouraged to access services digitally and where required support provided.

·             Councillor Watson pointed out that Children’s Services were improving, but this could result in an increase in demand.  Unit costs for children placed in residential care and out of authority placements were high and every effort was being made to address this.  There were no quick fixes and all the improvements would take time to embed.

·             Councillor Roche referred to the grant for Public Health which was expected to be cut and the greater 1.8% efficiency savings the hospital were being asked to make.

In terms of Adult Social Care the traditional service needed to transform in order to become more effective.  Overall savings in the order of £10 million were required, but a ring-fenced precept on Council Tax to raise funds for Authorities with Adult Social Care responsibilities, set to a maximum level of 2%, would raise additional funding in the region of £1.7 million.

·             Councillor Wallis referred to the significant threats to social housing, the proposed 1% rent reduction through the welfare reform proposals, fixed term tenancies and the impact on the Housing Revenue Account.

·             Councillor Sims acknowledged the great pressure on budgets and the work taking place in her own area of responsibility where the level of service was still provided whilst ensuring the level of savings needed were achieved.

·             Councillor Lelliott reported on the reliance of economic development to bring in investment in order to grow jobs and the local economy.

The Leader confirmed this report focused on the expected impact on services with service specific changes, which excluded the £5 million from the Government to support Children’s Services reform.

The next five years in Local Government were going to be tough and the Council had given itself the difficult task of delivering the Medium Term Financial Strategy and sustaining the savings required which amounted to £21 million in 2016/17.

Councillor Parker expressed his concern about the 2% precept on Council Tax for Adult Social Care and the need to make it clear what these additional funds would be spent on as this would not be recognised by members of the public.

Commissioner Sir Derek Myers pointed out that there would be service reductions as well as service increases and new money would be available for Children’s Services and Adult Social Care.  It was right and proper that service reductions were placed into the public domain and a more balanced view would be available at the next meeting in February, 2016. 

Minded to Grant Decision:-  (1)  That the content of the report to form the basis of further public and partner consultation on the financial and service implications of the Council setting a balanced Budget from 2016/17 onwards be approved.

(2)  That it be confirmed the Council is minded to take up the flexibility of a 2% levy on Council Tax for Adult Social Care, following Central Government’s Provisional Local Government Settlement announcements, to support a balanced budget in 2016/17 and ongoing service modernisation.

(3)  That specific, detailed consultations with service users, delivery partners and contractors as appropriate are ongoing (including further Equalities Assessments) be noted.

(4)  That detailed consultation with staff and Trade Unions on the workforce implications of these proposals be ongoing.