Agenda item

1.         That the proposals for Directorates’ contributions to deliver the Corporate Strategy  2014-19, as set out in Annex 1of the submitted report, be approved.

2.         That the detailed service revenue and capital budgets for the years 2014/15 and indicative budgets for 2015-19, including amendments resulting from the Final Local Government Financial Settlement and other Government funding changes announced after the 2014/15 budget was approved in February 2014, as set out in Annex 2 of the submitted report, be approved.

3.         That the publication of the service revenue and capital budgets as the 2014-19 Medium Term Financial Plan be approved.

4.         That the fees & charges approved under delegated powers be endorsed and  other fee and charge proposals, as set out in Annex 3 of the submitted report, be approved.

5.         That the work underway to secure the savings allocated to Adults Social Care in each year of the MTFP period, as set out in paragraph 9 of the submitted report, be noted.

6.         That the requirement to re-profile the Adult Social Care savings across the period, as set out in paragraph 9 of the submitted report, be noted and the use of unused provisions and reserves to support that requirement be approved:

·           the reduction of the council’s potential loss on its investment in two Icelandic banks, leads to a reduction in the required reserve of £1.0m (paragraph 12 of the submitted report)

·           the settling of the council’s Mutual Municipal Insurance liability in late February 2014 leads to the release of £3.3m from the Insurance Reserve (paragraph 13 of the submitted report)

·           the use of £5.4m from the Budget Equalisation Reserve (paragraph 14 of the submitted report)

·           the use of  £4.3m from the Economic Downturn Reserve (paragraph 14 of the submitted report)

7.         That a report be received in July 2014 on the detailed savings programme following a further review by the Chief Executive and Chief Financial Officer.

8.       That the Council will develop proposals to respond to damage to roads caused by flooding up to £10m, and that it is not the intention that this impacts on Project Horizon and also that it be noted that some funding is being made available from Central Government with any shortfall to be met by adjustments to the capital programme, and:

9.       That a report be received in July 2014 on the impact of the severe weather on services work programmes and the council’s revenue and capital budgets.

 

10.     That the Leadership Risk Register, as set out in Annex 4 of the submitted report, be noted.

 

11.     That the Equality Impact Assessment of the savings proposals within the Directorate and service budgets, as set out in Annex 5 of the submitted report, be noted

 

Reasons for Decisions:

 

The 2014–19 MTFP is a five year budget that is aligned to the corporate strategy. It reflects assumptions about the current local and national financial, economic and political environment. Regular reporting through the year will enable progress to be effectively tracked and managed.

 

The Corporate Strategy 2014-19 sets out the council’s key priorities, which are supported by contributions from each directorate to ensure the Council delivers great value to Surrey residents.

 

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

 

The council set its budget envelope and council tax precept for the 2014/15 financial year at the County Council meeting on 11 February 2014. At the same time, the Council also refreshed its Corporate Strategy 2014-19. Concurrently, the Council also approved indicative budgets for the following four years, 2015/16 to 2018/19. This report now presented the detailed service revenue and capital budgets for 2014/15 and indicative budgets for the following four year period.

 

The Leader referred to the report and the attached Annexes:

 

Annex 1 – Directorate Priorities

Annex 2 – Detailed Service Revenue and Capital Budgets

Annex 3 – Fees and Charges Schedules 2014/15

Annex 4 – Leadership Risk Register

Annex 5 – Equality Impact Assessments

 

He proposed that each Cabinet Member would speak on their portfolio. He said that he was satisfied with the report and pleased with the input from the select committees. He referred to the recommendations from the Communities Select Committee relating to the proposed direction of travel for Surrey Fire and Rescue, which were tabled at the meeting (attached as Appendix 2 to these minutes).

 

He also highlighted two other tabled documents: Medium Term Financial Plan (MTFP) corrections (attached as Appendix 3 to these minutes) and revised recommendations – to include a new recommendation (8), with subsequent recommendations renumbered, which was:

 

‘ That the Council will develop proposals to respond to damage to roads caused by flooding up to £10m, and that it is not the intention that this impacts on Project Horizon and also that it be noted that some funding is being made available from Central Government with any shortfall to be met by adjustments to the capital programme, and:’

 

Key points made by Cabinet Members / Cabinet Associate Members were as follows:

 

Adult Social Care

 

·         The Directorate had achieved significant savings in recent years

·         There was a very stretching target of £46m for this current year and it was hoped that £31m savings would be achieved by year end

·         There had been a detailed examination of the Friends, Family and Community Programme and strategies and processes were now in place to deliver savings from the programme in 2014/15 of £10m

·          Reference to recommendation (6) and the requirement to re-profile the Adult Social Care savings across the 5 year period

·         Note that the efficiencies risk analysis illustrates that the ‘red’ risks would be substantially less in 2014/15 but would increase in 2015/16

 

Children, Schools and Families

 

·         The proposed budget for 2014/15 is £334m, an overall increase of £9m

·         There were planned savings of £9.1m for 2014/15

·         The Directorate had established a Public Value programme to research and identify efficiency savings

·         Strengthening preventative work was crucial to making Directorate savings

·         The funding for the Special Education High Needs Block had not included growth to meet increased demand

·         Explanation of the reduction to the Dedicated Schools Grant

 

Customers and Communities

 

·         Budget pressures of £6m over this five year planning period

·         Surrey Fire and Rescue were continuing to implement the Public Service Plan on a planned basis and this service had planned savings and income generation of £6.3m over the five year period

·         The Cabinet Member for Community Services thanked the Communities Select Committee for their support re. the direction of travel for Surrey Fire and Rescue and endorsed the formation of a Member Reference Group. She also confirmed that robust plans would be in place for consultation with stakeholders and residents on the revision of the Public Safety Plan

·         A reference to the reductions to the Members’ Allocation Funding and the Community Improvements Fund

·         The Activity Information page lists the wide range of services within this Directorate

 

Environment and Infrastructure

 

·         The substantial budget pressures and growth for this Directorate

·         Many local bus services were subsidised by the County Council and these contract savings, planned for 2013/14 have not been delivered

·         The Highways Service ‘Project Horizon’ had been very successful

·         The flooding problems and repairs to roads

·         Work was on-going with Borough / District colleagues to put together a joint contract to deal with waste disposal / recycling

·          A new method of road re-surfacing was being trialled and could lead to further efficiencies in Highways

 

Business Services

·         Savings of £6.3m to be delivered from this Directorate over the five year period and partnership working would drive benefits from economies of scale

·         Additional strategic investment in IMT of £2m in 2014/15 and £1m per annum thereafter

·         Continued drive towards 60% procurement contracts being awarded to Surrey businesses

 

Chief Executives

 

·         On-going pressures of £1.5m over the five year planning period

·         Increased cost due to both the number and complexity of child protection cases within Legal Services

·         Roll out of superfast Broadband continues

 

Central Income and Expenditure

 

·         Gross Expenditure under this Budget has been reduced by a net amount of £3.5m

·         The risk contingency budget would be reduced in 2014/15 to £5m and be removed thereafter

·         The cost of auto-enrolment of employees to the Pension Fund had been less than originally estimated. However, the Pension Review completed in 2013/14 would result in increased employer contributions from 2014/15 onwards

·         Also, the change to single tier state pension, to be introduced in April 2016, would cost the Council an estimated £6m per year

 

Public Health

 

·         It had been a good first year

·         A preventative programme was critical to help residents stay healthy

 

Other key points:

 

·         The promotion of economic growth and the Council’s desire to award contracts to Surrey traders and businesses

·         The number of apprenticeships created

·         The importance of partnership working

·         The Broadband programme would complete this year. Also, the Council had recently appointed a Chief Digital Officer

·         The Council would be spending £105m in 2014/15 on creating additional school places

 

Equality Impact Assessments (EIAs)

 

1. Adult Social Care

 

The majority of the savings proposals were ‘continuations’ and therefore had existing EIAs which were on-going. However, there were two new savings requiring EIAs: (i) Family, Friends and Community Support – details set out within the Annex,

(ii) Savings from Traded Activity – the EIA to be undertaken as part of the detailed project planning by August 2014.

 

2. Business Services

 

There was one new EIA – Implementation of a Managed Print Service. Mitigating actions were set out within the Annex. However, the Cabinet Member confirmed that the Council would provide paper copies when required.

 

3. Chief Executives

 

There were two new EIAs: (i) One Team Communications Review – to realise savings on communications across the Council, (ii) Disbanding the Council’s Legacy Team.

 

4. Children, Schools and Families

 

There were three new savings proposals identified for this Directorate. Only one would require an EIA, as the service realignment would not be implemented until 2015/16, the EIA would be undertaken at a later stage, as the project develops.

 

5. Customers and Communities

There are twenty seven initiatives to deliver budget savings and seven have identified as needing EIAs at this stage, one of which is the reduction in the Members’ Local Allowance and the Community Improvement Fund. Potential impacts and mitigation that have been identified are set out within the Annex.

 

6. Environment and Infrastructure

 

Four new savings proposals have been identified but only one is at an advance stage for an EIA to be undertaken – the savings for the Network Management Information Centre. Two further proposals relating to Central Support and Transport Policy were expected to have potential equalities implications relating to staffing changes and EIAs would be completed at the appropriate time. Savings re. the Transport Review are not planned until 2015/16, the proposals are due to be considered by the Cabinet in June 2014 and an EIA will be presented with the report.

 

Finally the Leader of the Council drew the debate to a close by highlighting the two very severe periods of flooding that Surrey had faced recently, which had impacted on residents and businesses and caused very serious damage to Surrey’s Highways. He said that by including an additional recommendation, the Cabinet was confirming that £10m would be made available to ensure necessary repairs were carried out urgently and that the Council was pledging that this would not impact on the £100m Project Horizon plans.

 

RESOLVED (as amended):

 

1.         That the proposals for Directorates’ contributions to deliver the Corporate Strategy  2014-19, as set out in Annex 1of the submitted report, be approved.

2.         That the detailed service revenue and capital budgets for the years 2014/15 and indicative budgets for 2015-19, including amendments resulting from the Final Local Government Financial Settlement and other Government funding changes announced after the 2014/15 budget was approved in February 2014, as set out in Annex 2 of the submitted report, be approved.

3.         That the publication of the service revenue and capital budgets as the 2014-19 Medium Term Financial Plan be approved.

4.         That the fees & charges approved under delegated powers be endorsed and  other fee and charge proposals, as set out in Annex 3 of the submitted report, be approved.

5.         That the work underway to secure the savings allocated to Adults Social Care in each year of the MTFP period, as set out in paragraph 9 of the submitted report, be noted.

6.         That the requirement to re-profile the Adult Social Care savings across the period, as set out in paragraph 9 of the submitted report, be noted and the use of unused provisions and reserves to support that requirement be approved:

·      the reduction of the council’s potential loss on its investment in two Icelandic banks, leads to a reduction in the required reserve of £1.0m (paragraph 12 of the submitted report)

·      the settling of the council’s Mutual Municipal Insurance liability in late February 2014 leads to the release of £3.3m from the Insurance Reserve (paragraph 13 of the submitted report)

·      the use of £5.4m from the Budget Equalisation Reserve (paragraph 14 of the submitted report)

·      the use of  £4.3m from the Economic Downturn Reserve (paragraph 14 of the submitted report)

7.         That a report be received in July 2014 on the detailed savings programme following a further review by the Chief Executive and Chief Financial Officer.

8.         That the Council will develop proposals to respond to damage to roads caused by flooding up to £10m, and that it is not the intention that this impacts on Project Horizon and also that it be noted that some funding is being made available from Central Government with any shortfall to be met by adjustments to the capital programme, and:

9.         That a report be received in July 2014 on the impact of the severe weather on services work programmes and the council’s revenue and capital budgets.

 

10.      That the Leadership Risk Register, as set out in Annex 4 of the submitted report, be noted.

11.      That the Equality Impact Assessment of the savings proposals within the Directorate and service budgets, as set out in Annex 5 of the submitted report, be noted

Reasons for Decisions:

 

The 2014–19 MTFP is a five year budget that is aligned to the corporate strategy. It reflects assumptions about the current local and national financial, economic and political environment. Regular reporting through the year will enable progress to be effectively tracked and managed.

 

The Corporate Strategy 2014-19 sets out the council’s key priorities, which are supported by contributions from each directorate to ensure the Council delivers great value to Surrey residents.