Agenda item

Report of the Corporate Director (Finance & Performance) considered by Cabinet on 1^st September 2009

The Panel received the joint report of the Corporate Director (Finance and Performance) and the Head of Financial Services, which advised of Cabinet’s progress so far in identifying options for savings and efficiencies and areas of service activity that should be pursued further.

The Corporate Director (Finance and Performance) reported that, following Cabinet agreeing the timetable and process for identifying options for savings and efficiencies, officers had drafted a Savings and Efficiency Programme, which was attached as Appendix A to the report.  This included, amongst other things, an outline of the principles for developing shared services with other local authorities where demonstrable benefits could be gained, and Cabinet was looking at a range of options.

Members were advised that a Cabinet exercise to review variances and assess their impact on future years’ budgets was ongoing.  A Statement of General Fund Savings achieved to date was attached at Appendix B to the report, showing approved savings included in the 3-year revenue budget and the impact so far of other approvals and known or potential budget changes on Medium Term Financial Strategy (MTFS) savings targets.  Members were guided through the details.  It was noted that Cabinet was at the early stages of developing savings and efficiencies options and that the Panel would like to receive further reports from Cabinet on the progress that individual Cabinet Members were making.  The Panel felt that this was important due to previous delays in Cabinet identifying options for savings and further felt that this should be added to the Panel’s work programme.  In addition, the Panel agreed to advise Cabinet that they should follow their agreed timetable for preparing savings and efficiency options.

Attached as Appendix C was an analysis of the current year’s expenditure and income analysed over Corporate Plan priorities, Cabinet Member portfolios and individual priority objectives and other service activity not currently aligned to corporate priorities.  It was noted that Cabinet had been asked to consider the allocations of current net spend and make appropriate recommendations.

It was reported that Cabinet had agreed that a public engagement exercise be undertaken as part of this year’s budget process and had requested officers to produce options for its consideration.  The work was complete and Appendix D to the report set out a range of options and associated costs for Cabinet’s consideration and their preferred approach.  The Panel was advised that Cabinet had agreed Option 4a at their recent meeting.  A public consultation would be undertaken in December, which would run for six weeks.  Results of the consultation process would be reported to Cabinet and the Panel in January.

Resolved:

(1)        That the report be noted.

(2)        That the Panel agree the principles shared by the Leader of identifying savings and efficiency options earlier than previous years and that Cabinet Members be strongly urged to prevent slippage in the timetable to enable evaluation and scrutiny by the Overview and Scrutiny Committee and Budget and Performance Panel to be undertaken.

(3)        That the Panel’s work programme be amended to include an item to receive future reports of the progress made by individual Cabinet Members in identifying savings and efficiency options.