Meeting documents

-       To consider the report and appendices.

The Chair invited Lead Member for Finance and Human Resources – Cllr Liz Leyshon to introduce the report. Cllr Leyshon also introduced Director of Finance and Governance - Jason Vaughan.

The following key points were highlighted:

·       Proposed balanced budget to protect frontline services delivered by existing Councils and voluntary sector partners.

·       Complex process of combining five budgets for operation from 1 April.

·       Unprecedented demand for services particularly in Social Care, as well as pressures of high inflation and LGR.

·       Capital programme updated for new and existing schemes (some with government funding) now RAG rated.

·       LGR implementation budget £3.12m for 2022-23 with £900,000 additional funding requirements so approx. £4m under flexible use of capital receipts.

·       New savings proposals £3.9m related to staffing, £2.9m from tier 2 & 3 appointments and £1 from other appointments equating to 300 posts over 3 years.

·       Section 25 checks show robust budget estimates, realistic projection for service demand; adequacy in level of reserves proposed to stay at £47.4m in the range of £30-50m; assurance of reasonable level of reserves for next year’s budget.

Member comments/questions were invited:

-       A Councillor asked how 1% increase in inflation would affect the budget. Officer stated example of staff pay award that was budgeted at 5%, so 1% inflation rise is £1.5m, which would come from the £6m general contingency.

-       Asked for clarification of the £6m contingency. Officer explained this is 1.25% of service spend and any increase to contingency is detracted from services and therefore necessitate balanced approach. Contingency funds to considered with general reserves.

-       Risk for Somerset Council for 2023-24 higher than most authorities due to LGR before savings realised.

-       Stated Education SEND funds for 2023-24 included additional £3.2m from government.

-       A Councillor asked for confirmation of inflation costs in proposed budget. Officer stated varying forms of inflation e.g., inflationary pay award, waste contract inflationary increases. General inflationary increases are not included.

-       Asked what effect savings from inflationary charge increases (e.g., bulky waste collection) or proposed change to charged services (e.g. grit bins) on those with no alternative. Officer stated that most savings from alternatives to services rather than removal, such as move to charged service for grit bins.

-       Request for overview of district capital projects and greater opportunity for scrutiny of larger projects including high profile cases. Officer stated the need for posting-vesting review of capital programme.

-       Asked if fall in business rate income would be temporary. Officer outlined complex picture of business rate income and difficult task of predicting income due to government relief schemes. Total income projection for 2023-24 £122.173m, 50% of which goes to central government.

-       Stated that CCTV removal saving should be reviewed to make savings only where quality of service is low. Call for review of service.

-       Stated that proposed £1m saving in Children’s Services from move away from costly unregulated placements, should be viewed as medium risk and was attracting national attention.

In summary:

-       Members welcomed the balanced budget proposal and acknowledged the risk of £20m of reserves. Members requested urgent review of CCTV provision. All present were broadly content with the proposals.

The Scrutiny Committee are asked to consider the budget report as attached at Appendix A as requested by Executive on the 19 January 2023 and comment back to them on the 13 February 2023 including the following:

-       The overall proposals to balance the 2023/24 budget

-       The savings proposals in Appendix 2 (within Appendix A) in conjunction with the Equalities Impact Assessments attached at Appendix B and the fees and charges proposals attached at Appendix C.

The meeting ended at 2.58pm

END