To receive a presentation from the Executive Member for Finance and Governance.

The Executive Member for Finance and Governance went through the presentation circulated as part of the agenda. The Committee were informed of the work that had been done to reduce the budget gap during the year. The presentation also included details of the increased budget pressures since the budget Scrutiny exercise.

The Executive Member for Finance and Governance went over the reserves and how they were expected to be used over the course of the year. The Committee’s attention was drawn to the fact that a large amount of the reserves had been COVID reserves and the Committee were asked to note they would be greatly reduced in the coming years. The Committee were assured that the reserves were being utilised to deliver further savings going forward.

The Executive Member for Finance and Governance went through the key budget risks facing the Council which included the reset of business rates and the fair funding review, the delivery of the Council’s savings programme, and the increase in energy costs and inflation. 

The Finance and Change Board had held a scoping meeting to discuss what the Board would deliver. The Executive Member for Finance and Governance suggested that the Committee may want to consider how they would like for the Finance and Change Board to involve Scrutiny in the work it was undertaking.

The Vice Chair thanked the Executive Member for the quality of the report and asked that additional information about the Finance and change Board be provided when the details became available.

Councillor Dagnall asked about the vacancy protocol and whether that meant the Council had not been filling vacancies. Councillor Ross responded that the council had put in a freeze to help close the budget gap. However, it had been recognised that the freeze had placed additional stress on staff. The Executive Member for Finance and Governance suggested that this may be an area the Committee wished to look at in greater detail. Councillor Dagnall noted the additional work staff were doing and asked if additional wellbeing support was being put in place. The Executive Member for Finance and Governance responded that wellbeing of staff was a key concern of the Executive and while there were several schemes to support and reward staff it was an ongoing task.

Councillor Carter asked for an update on the progress of the 50 lowest funded authorities in approaching the government for more funding. Councillor Carter noted in the presentation that it stated that the use of reserves was not sustainable and asked for further clarification. Councillor Carter also asked whether there was any indication as to what the staff pay awards would be for the coming years. The Executive Member for Finance and Governance responded that he had not received an update regarding the increase in funding to a fairer threshold following the request made to Michael Gove. With regards to the reserves the Council could no longer continue to use the reserves in the way they had done up until this point. Going forward use of reserves would be focused upon delivering returns on the investment rather than filling gaps in the budget. The Director of Finance informed the Committee of the expected pay award for 2021/22 and 2022/23, and the Executive Member for Finance and Governance noted that the pay award did work out as a real terms pay cut due to the rate of inflation. 

Councillor Carter asked for the Committee to be sent the response from Michael Gove once it had been received and the Executive Member for Finance and Governance agreed.

Councillor Jerrome recognised the work of the finance and Change Board was going to be undertaking and asked how challenging the task faced by the Board would be to achieve. The Executive Member for Finance and Governance responded that it was a great task to continue to deliver savings but was optimistic about the work that the Finance and Change Board and what they could achieve by working better with other organisations across the borough.

Councillor Newgrosh thanked the Executive Member and Officers for the detailed response given around the Council’s Electrical and Gas supply prices.

RESOLVED:

1)    That the presentation be noted.

2)    That the response from Michael Gove to the 50 lowest funded Local Authorities be shared with the Committee.

3)    That more details as to the role and work of the Finance and Change Board be shared with the Committee.