Issue - meetings

1.         The potential implications of Spending Round 2013 (SR2013) on the county council’s budget position be noted.

2.         The proposed MTFP 2013-18 budget assumption changes in light of new information available since February 2013 (paragraphs 13 to 22 of the report submitted) be noted

3.         The MTFP 2013-18 be revised to:

a).   amend the capital programme to include an additional £95m in relation to school basic need and short stay schools for 2013-18 and £0.7m provisional expenditure in relation to the 800^th anniversary of the Magna Carta.

b).   reflect additional revenue budget spend from 2014-18 for:

·        revenue costs of additional capital programme items (£7.4m)

·        unachievable savings targets included in existing MTFP of £0.8m and

·        additional Surrey Fire & Rescue Service spending pressures (£2.0m)

·        the provisional contribution to celebrate the 800^th anniversary of the Magna Carta (£0.3m in 2014/15 only)

c).   add the level of additional savings that services have identified, which can realistically be delivered for 2014-18 (£56.0m in 2014-18, £19.5m in 2014/15)

d).   agree the predicted scale of currently unallocated savings required in
2014-18 if recommendations 3a-3c above are supported (£52.6m for 2014-18 and £25.6m for 2014/15).

e).   recognise that the remaining currently unallocated savings (£52.6m in
2014-18, £25.6m in 2014/15) would need to be met through further savings and/or increased income to ensure a balanced and sustainable budget could be prepared for 2014/15 onwards.

4.         That officers continue to work to identify realistic options for discussion with stakeholders and members during the next phase of the budget planning process for preparing a balanced and sustainable budget for 2014/15 onwards.

Reason for decision

In setting the MTFP 2013-18, the Cabinet agreed to undertake a review in the first quarter of 2013/14 to take account of the need to revise any of the budget assumptions in the light of progress with efficiencies and spending reductions, any impact of the revised Corporate and Directorate Strategies and implications of SR2013.

[The decisions on this item can be called in by the Council Overview and Scrutiny Committee]

The Chairman introduced the review of the Council’s financial plan and accompanying reports on the agenda relating to the further development and implementation of the corporate strategy for the next five years. This followed on from the Chief Executive’s 6 month report and discussion of the Corporate Strategy at the County Council meeting on 16 July 2013. These documents demonstrated the significant progress that had already been achieved and set out plans to ensure that the future of Surrey was secure. The Council’s success had been based on three pillars – taking a long term approach to financial planning and service delivery, being innovative in facing difficult challenges and working as One Team with partners, businesses and residents. Taken together, the reports before Cabinet set out the financial conditions faced by the authority following the recent Government Spending Round and the way Surrey County Council proposed to build on its previous successes to address these challenges and deliver the Corporate Strategy.

The Council faced stark choices in the coming months with demand for its services rising continually. Surrey would receive £24m less in government grant this year, with a further £16m reduction predicted next year as a result of the Government Spending Round 2013. At the same time, the increasing birth rate and service demand meant that a further £93m was needed for school places and £113mfor adult social care over the next four years. Savings would only meet part of this gap. One potential alternative would be to spend less, however this would mean difficult decisions on services for older people, the provisions of classrooms and improvements to roads, all of which residents valued and supported the local economy.

It was too early to set out what would be done in response, however officers would be instructed to develop realistic options for the budget planning process. The figures provided by the Government showed an expectation that council tax would need to rise. The Cabinet noted that the government figures did not align with central government requests for local tax freezes and that, in the circumstances, such a freeze would represent a reduction in the funding of services provided for the residents of Surrey.

Sir Merrick Cockell had noted that local government was by far the most efficient section of the public sector, however the further 10% cut in grant meant that it had again been the hardest hit. Surrey had consistently shown that it had the skills and ability to deliver public services efficiently and in accordance with local wishes, however it had to be realistic in the choices it now faced. Savings and reserves could only be spent once and had to be used sensibly.

The Cabinet noted key recent successes achieved by the Council. These included national recognition by the Employers Network in the area of equality and inclusion. Surrey employee Mr Abid Dhar had won the Equality Champion of the Year Award, ahead of competition from 300 national employers such as BT, EDF, IBM and  ...  view the full minutes text for item 124