Agenda item

To ask for comments on the 2016/17 budget proposals of the Executive for the Children, Young People and Learning Department

As part of the council’s consultation process, the Forum was presented with a report on the local authority budget proposals for 2016/17 which was based on the expected outcomes from the Local Government Financial Settlement.  David Watkins, Chief Officer, Children,Young People and Learning (CYPL) advised members that the report set out the overall financial arrangements and proposals for next year and that comments were sought in particular on the proposed changes for CYPL in respect of the revenue budget and capital programme. The report set out the difficult financial situation facing the council over the medium term with a balanced budget only being possible by making savings of £3.7m with Members yet to decide how the remaining £6m budget gap would be financed either from using reserves, further expenditure reductions, an increase in Council Tax or a mixture of the three options.

Cllr Barnard then provided the Forum with an update on the Council’s budget position following the publication of the provisional Local Government Financial Settlement, which was announced after the commencement of the council’s consultation process. This confirmed that there would be a much larger reduction in grant allocations to local authorities than previously stated. Furthermore, the settlement included assumptions about how the local authority would increase income from its current level through using the new 2% Adult Social Care Council Tax levy and that additional Council Tax would be due from 950 new house builds in the Borough over the next year when recent experience has shown that a more realistic figure is 350.

In essence, the Council had to find further savings of £2.4m for the year 2016/17 and this would impact on aspects of both revenue and capital budgets managed by CYPL. Officers were currently working through proposals and savings could lead to a reduction in front-facing work together with a re-phasing of a number of planned projects on the capital programme.

With respect to any impact on front line services within CYPL as a result of necessary savings, Cllr Barnard advised that specialist services that provided help to those with additional support needs and those who were vulnerable or at risk would be protected.  More universal services would be reviewed to identify if alternative delivery mechanisms could be implemented via involvement from voluntary organisations or the Town Council.  Whilst it was accepted that savings had to be made there was a commitment to provide services to the young people in the Borough that most needed it and that the mental health and wellbeing work already underway would remain a priority.  Cllr Barnard advised members that the work to effect the changes that were needed had begun in relation to consultations and employees at risk and that those affected would be contacted within the next week.  Cllr Barnard clarified that whilst this meant some posts would be deleted this included existing vacancies that had not been filled.  However, no action would be taken until the final budget proposal was made to the Executive on 9 February 2016. 

In respect of the savings proposed for CYPL detailed in the published report, Anne Shillcock expressed concern about the potential impact a revised management structure for Children’s Centres would have on the delivery of the service.  Cllr Barnard said there would be close scrutiny on the Children’s Centres and that the change in management structure may mean that outreach and support services would be provided across all four Centres but a commitment would be made to have a presence on all four sites.  Cllr Barnard agreed to provide a report on the new management structure to review the impact of the cutbacks once relevant data was available to evaluate the impact and said he would also ask the Scrutiny Panel to look at the effect of the changes.

The Forum also discussed the Schools Music Festival. This event took place every two years and enabled pupils from the Council's Primary schools to participate in a large scale production which linked music, dance and art.  Cllr Barnard said the event had a very positive impact across the schools that took part and the cost would remain in the proposed budget.  Discussion took place with regard to an alternative funding stream for the event and Wellington College was proposed as a potential source of sponsorship. 

In respect of the CYPL proposed capital programme, it was noted by members that a commitment was being made to large scale projects in relation to new and expanding schools whilst some existing services were struggling to be maintained and a number of staff may be at risk of redundancy.  David Watkins advised members that the revenue budget and capital programme were entirely separate and that legally, capital money could not be used to support revenue funding. 

The Forum was advised that the proposed budget for the capital programme was indicative and subject to change, particularly in respect of phasing of projects and would need to reflect the latest actual market forces relating to the need for new schools that would follow the building programme determined by developers. In relation to new and expanding schools, Liz Cook commented that there was a need to ensure house builders worked on time as their output was interlinked with the schools building programme in terms of meeting future need. The forum was advised that the Council was already in talks with developers on this issue.

Cllr Barnard said the proposed capital programme was the first to be predicated on borrowing but that robust work was being undertaken to ensure that as little as possible is borrowed to reduce the impact on revenue and to focus on maximum service delivery at the lowest possible cost.

The Forum was advised that the proposed revenue budget for 2016/17 that formed part of the current consultation process would not change unless there were concrete reasons not to proceed and feasible alternative suggestions for savings were made. 

Anne Shillcock proposed that members of the Executive were made aware of the concerns of Forum members on the proposed cuts to CYPL services in respect of their long term impact on young people and the potential for future cost increases.  All members of the Forum endorsed Anne’s proposals.