Agenda item

The County Treasurer for Lancashire County Council has been invited to discuss the County Council’s Budget proposals for 2012/13 and 2013/14.

The Panel received a verbal presentation from Gill Kilpatrick, Lancashire County Council’s Treasurer, regarding Lancashire County Council’s budget proposals for 2012/13 and 2013/14. 

The County Treasurer thanked the Panel for the invitation and advised that any comments on the proposals should be included in the Council’s consultation response and would be fed back to the County Council’s Cabinet at its next meeting. 

The County Treasurer reminded the Panel of the context in which the budget proposals had been considered, in 2011/12 the Council had identified £171m in savings.  As with any three year period, many things had changed, however, the Council’s priority remained to maintain stability for services, especially those which affected vulnerable people. 

The Panel were advised that there were two parts to the proposals, budget pressures and investment opportunities. There were three main areas of budget proposals which were waste costs, council tax freeze grant 2012/13, and below the line savings within the three year financial strategy. These were outlined in detail in the presentation. The Panel were advised that the County Council’s management team had identified below the line savings totalling £7.245m in 2013/14 to ensure the budget position was balanced, these were as follows:

·         Reduction in travel costs.

·         Property rationalisation.

·         Rationalisation of facilities management and conferencing.

·         Transforming finance through oracle release 12.

·         Reductions in management costs.

·         Operating model.

·         Reduction in members costs.

It was advised that these savings would not affect service delivery.

It was reported that the proposals set out in the report would create a one off headroom of £10.0m in 2012/13. On top of the treasury management extra-ordinary savings of £40.0m, and less £15.0m funding for the 2014/15 capital programme, this created £35.0m total resources available for investment in the Council’s key priorities. The Cabinet were consulting on proposals for one-off investment in the following priorities:

·         Promoting sustainable employment for young people.

·         Support for travel costs for young people to assist them in education, employment and training.

·         Strategic economic development and infrastructure to develop employment opportunities across Lancashire.

·         Armed forces veterans – mentoring services for secondary school young people.

·         Libraries regeneration.

·         Further support for the programme of youth zones.

This created the opportunity for one-off investment in priorities. 

The County Treasurer advised the Committee that the date of Lancashire County Council’s Cabinet meeting had been changed to 1^st February 2012, and as such all consultation responses were requested to be returned by 31^st January 2012 at the latest.

Following the verbal presentation, the County Council’s Treasurer answered extensive questions from the Panel and stakeholders. The issued raised by the Panel and stakeholders were:

·         The County Council’s choice of investment banks.

·         Concessionary travel – companion card scheme.

·         Investment in residential and day care facilities for older people, and facilities for the provision of respite care for children with disabilities.

·         Street lights.

·         Reduction in travel costs.

·         Reduction in public transport information and removal of Real Time information service.

·         Negotiation into contracts with bus operator’s contract liability for the operators to install and operate digital information displays at bus stations.

The Chairman invited questions from those non-panel members and economic stakeholders who had been invited to attend the meeting, the issues raised were as follows:

·         Youth zones.

·         Trade waste.

·         Problems with diversion to landfill.

·         Borrowing between local authorities.

·         20mph speed limit zones in Lancaster district.

The County Treasurer advised that any comments received as part of the consultation process would be fed back to Lancashire County Council’s Cabinet at its meeting on 1^st February 2012.  

Resolved:

(1)               That the County Treasurer, Gill Kilpatrick, be thanked for her presentation.