Agenda item
Revenue & Capital Budget 2019/20 to 2023/24
- Meeting of Corporate Overview Select Committee, Friday, 25 January 2019 10.00 am (Item 5/19)
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This item comes in two parts: Part A ‘Transformation Proposals – Delivering Better Services For Residents’ and Part B ‘Revenue & Capital Budget 2019/20 and Key Financial Strategies to 2023/24’. The reports will be published in a supplementary agenda on 21 January 2019 following publication of the Cabinet agenda.
Minutes:
Witnesses:
Mel Few, Cabinet Member for Finance
Joanna Killian, Chief Executive
Leigh Whitehouse, Executive Director of Finance
Michael Coughlin, Executive Director for Customers, Transformation and Digital
Key points raised during the discussion:
1. The Chairman informed the Committee that Part B, ‘Revenue & Capital Budget 2019/20 and Key Financial Strategies to 2023/24’ would be considered before Part A, ‘Transformation Proposals – Delivering Better Services For Residents’.
2. The Chief Finance Officer provided an introductory statement where he outlined the council’s current financial position. It was stated that its financial position compared to other local authorities was considerably weaker and that a trend was forming to use its resources, including reserves, to balance the budget. Members received a presentation which highlighted key information around the Cabinet report on its proposals which would be recommended to County Council on 5 February 2019. Members noted that there was a particular focus on adults and children’s service as there had been significant work through the transformation targeting improvements on practice and the delivery of outcomes to people. The Committee further noted details around the new Cabinet position of Cabinet Member for Finance where it was explained that the portfolio would be leading on the overall budget strategy and delivery against the financial plan. The presentation is attached to these minutes as annex 1.
3. When discussing the recent meetings of the Committee’s Budget Sub-Group, the Chief Finance Officer addressed Member’s concerns that the Executive Directors seemed to lack optimism that they would meet the targets outlined in each service budget envelope. He stated that it was important to be realistic and to not lose sight that the council’s financial situation was delicate, and that there was huge amount of work required. He further stated that some savings were considered to be high risk so it was sensible not to be too optimistic.
4. The Committee discussed the £10m contingency available to mitigate any savings shortfalls and felt this may be insufficient given the level of transformation required and the unknown factors or re-emerging risks. The Chief Executive said that she felt assured that it was a deliverable budget but highlighted that there was considerable risk as services needed to adapt. The Cabinet Member for Finance stressed the importance of frequently analysing activity measures at the earliest occasion to have a better understanding on arising challenges. The Cabinet Member also highlighted the need for budget holders to understand the responsibility and ownership they have over their respective budgets.
5. The Committee noted the rising costs from external foster caring agencies and out of county placements. Members advised that officers look at best practice of other local authorities to identify solutions and share lessons learnt.
6. The Committee sought information on plans to address costs around Special Educational Needs and Disabilities (SEND) and transitioning of young adults. The Cabinet Member for Finance provided detail on an all-age learning project that focused on transitioning young adults from care in the Children’s Service into Adult Social Care. He stated that this work provided a number of benefits which included allowing Adult Social Care to understand incoming costs as well as helping parents understand future arrangements. The Chief Executive added additional detail around a specialist learning disabilities team created to support needs as they arise as well as build relationships with children to promote better outcomes.
7. The Committee stressed the importance of having sufficient communication with service users as services evolve.
8. The Chief Executive stated that the council needed to reduce the number of children coming into care in a safe way. This included creating a new model that better supported parents with issues that could eventually lead to the involvement of Children’s Services.
9. The Committee were advised that officers were looking to change the model of practice within Children’s Services to bring it in line with practice nationally. It was stated that there was significant science behind the new model and that it would be delivered to provide better outcomes for children. It was further noted that a Children’s Academy had been introduced to help create a workforce that was skilled and able to support the new model.
Meeting adjourned 10:55am
Holocaust Memorial Day Ceremony
Meeting resumed at 11:30am
10. The Committee noted that there was not currently a system in place to forecast the number of people coming into the council’s care or that assessed future needs. Officers went on to explain that better and more consistent relationships were needed with the health service as they could provide useful data that will improve overall understanding. It was further noted that the county had significantly higher numbers of Educational, Health and Care Plans (EHCPs) compared to other statistically neighbouring local authorities.
11. Members highlighted the need for a holistic view when working on multiple overlapping projects to prevent any ripple effects having negative impacts. The Executive Director for Customers, Transformation and Digital stated that any changes were made through a systematic process through the business cases which allowed officers to see the overall effects and independencies.
12. When discussing the proposed closure of various Community Recycling Centres (CRCs), Members felt concerned as they were not aware of any programmes or projects that outlined each sites future arrangements. Officers stated that a governance board of experienced officers and Cabinet Members would be put in place to work on asset disposal or repurposing.
13. The Committee were pleased with the inclusion of the Environmental Impact Assessments (EIA) within the report and stressed the importance that all Members read them thoroughly before consideration at Cabinet on 29 January 2019.
14. The Chief Finance Officer provided detail around the staffing restructure of Children’s Service which formed part of the transformation programme.
15. The Committee highlighted the six recommendations included within the Budget Sub-Group report.
The Committee concluded discussions relating to Part B of the report and agreed the following recommendations:
The Committee:
- Recognises the difficulty of formulating a new transformative budget for 2019/20 and the consequences of failing to successfully implement this
- Supports the proposal of the Cabinet Member for Finance that there is rigorous, weekly monitoring of service activity, performance and expenditure and that this data must be owned individually and collectively by the Cabinet Members
- Is conscious that the £10m contingency available to mitigate any savings shortfalls could be insufficient given the level of transformation required and the unknown factors or re-emerging risks
- Recommends that the Cabinet Member for Finance in May is invited back to provide evidence on the progress towards achieving the targets set out in the Budget and Financial Strategy
The Committee moved to discussions relating to Part A of the report
- The Chief Executive provided an outline of the consultation and engagement carried out over the last several months. Members noted that officers felt it was very important to have regard for the opinions of residents in order to help outline the council’s priorities. When reflecting on the consultation outcomes, it was understood that the most vulnerable had to be prioritised within the council’s budget, although it was recognised that many of surrey’s population would have no involvement with Children’s Services and Adult Social Care. Officers also stated that they were mindful that £850m of the council’s budget had not yet been consulted on.
- Members of the Committee requested details on the lessons learned during the consultation and engagement period and asked officers to reflect on what they would do differently in the future to make residents feel better listened to. Officers explained that there was a need to incorporate engagement as ‘business as usual’ when working on individual projects in order to ensure as aspects are considered. This would also require a culture change within the council as there would be a need for an equipped workforce that had the skills to have the conversations with residents. It was also noted that it would be beneficial to have conversations earlier and the avenues to consult with hard to reach groups.
- When discussing free-format text boxes within the consultation, the Chief Executive acknowledged that the comments obtained could be extremely insightful but also sometimes be hard to analyse effectively.
- The Chairman highlighted that it would be beneficial for the Committee to scrutinise the topic of Council consultation, engagement and co-design with residents at a future meeting.
The Committee concluded discussions relating to Part A of the report and agreed the following recommendations:
The Committee recommends:
- It works with the Chief Executive to agree how the Committee can best contribute to the Council’s principles for future consultation, engagement and co-design; and
- Adds the topic of Council consultation, engagement and co-design with residents to its forward work programme for July
Supporting documents:
- Item 5 - Budget cover report, item 5/19 PDF 55 KB
- COSC Budget Sub-Group Report- Budget Scrutiny v4, item 5/19 PDF 132 KB
- Annex 1- Directorate for HWA budget envelope, item 5/19 PDF 114 KB
- Annex 2- Directorate for Childrens budget envelope, item 5/19 PDF 96 KB
- Annex 3- EGC 2019-20 Budget Envelope, item 5/19 PDF 177 KB
- Annex 4- CDT 2019-20 Budget Envelope, item 5/19 PDF 97 KB
- Annex 5- HT&E 2019-20 Budget Envelope, item 5/19 PDF 139 KB
- item 07 - Part A Service Transformation Cabinet report FINAL, item 5/19 PDF 236 KB
- item 07 - Part B Budget Report 2019-20 - Cabinet FINAL, item 5/19 PDF 139 KB
- item 07 - Annex 1 - CC Consultation Report FINAL, item 5/19 PDF 171 KB
- item 07 - Annex 1a - Children's Centre Equality Impact Assessment 2019 FINAL, item 5/19 PDF 215 KB
- item 07 - Annex 2 - SEND Consultation Report FINAL, item 5/19 PDF 95 KB
- item 07 - Annex 2a - SEND Transformation Programme EIA FINAL, item 5/19 PDF 237 KB
- item 07 - Annex 3 - L&CS Consultation Report FINAL, item 5/19 PDF 92 KB
- item 07 - Annex 3a - Transforming Libraries and Cultural Services in Surrey EIA FINAL, item 5/19 PDF 197 KB
- item 07 - Annex 4 - Shaping Surrey’s Community Recycling Centres FINAL, item 5/19 PDF 150 KB
- item 07 - Annex 4a - Proposed changes to Surreys Community Recycling Centres EIA FINAL, item 5/19 PDF 160 KB
- item 07 - Annex 4b - CRC Waste Service Information, item 5/19 PDF 3 MB
- item 07 - Annex 4c - CRCs environmental consideration summary FINAL, item 5/19 PDF 53 KB
- item 07 - Annex 5 - Concessionary Bus Travel Consultation Report FINAL, item 5/19 PDF 107 KB
- item 07 - Annex 5a - Concessionary Travel Review EIA FINAL, item 5/19 PDF 160 KB
- item 07 - Annex 6 - 2019-20 Budget Financial Strategy 2019-24 FINAL, item 5/19 PDF 444 KB
- item 07 - Annex 7 - SCC Budget EIA FINAL, item 5/19 PDF 116 KB
- item 07 - Annex 7a - ASC Transformation Savings EIA FINAL, item 5/19 PDF 247 KB
- item 07 - Annex 7b - Customer Experience EIA FINAL, item 5/19 PDF 275 KB
- item 07 - Annex 8 - Flex Use of Capital receipts FINAL, item 5/19 PDF 74 KB
- item 07 - Annex 9 - Surrey CC Capital and Investment Strategy FINAL, item 5/19 PDF 215 KB
- item 07 - Annex 9a - MRP Policy 19-20, item 5/19 PDF 54 KB
- COSC Powerpoint, item 5/19 PDF 335 KB