Agenda item

To consider the Council’s draft budget proposals for 2011/2012:

a)                  Corporate Services Department

b)                  Chief Executive’s Office

c)                  Feedback from the Overview and Scrutiny Panels and overall conclusions.

The Borough Treasurer Designate presented his report on the draft budget proposals for 2011/12.  The proposals had been agreed by the Executive in December 2010 as the basis for consultation with the Overview and Scrutiny Commission and Panels and other interested parties. 

The proposals were prepared prior to receipt of the Provisional Local Government Finance Settlement, details of which were received the day before the Executive met, and therefore did not take account of the settlement.  The Commission noted that it may be necessary to reduce spending next year by up to £2.25m, in addition to the £3.7m identified in the original budget proposals.  Around £1m had been fully anticipated as it related to grant funded work that had been due to end on 31 March, leaving just over £1m further savings to find from balances or further expenditure reductions.  Work on this was underway and the outcome would be fed into the budget consultation process as soon as possible.

The annexes set out the budget proposals in detail:-

Revenue Budget                    A          Commitment Budget

B          Budget pressures

C         Suggested savings

D         Proposed fees and charges

Capital Programme                A          Capital Programme   

B          Corporate Services/Chief Executive

C         Council wide

Extracts of the Overview and Scrutiny Panels’ consideration of the budget papers were also included.

The Commission scrutinised the budget proposals for Chief Executive’s Office,  Corporate Services Department and non-Departmental/Council wide items, including budget pressures, budget savings proposals, proposed fees and charges and capital programme.

The Commission noted that, following the spending review announcement, the Executive would look again at the Capital Programme, as a significant amount of grant funding had been made available to the Council.  The Director of Corporate Services referred to the committed items and budget pressures which had been kept to an absolute minimum, also to the maximisation of savings, and particularly different ways of providing technology to members and the Thin Client desktop refresh.

Arising in discussion and from members’ questions:-

• NHS learning disability budgets and associated commissioning responsibility for social care for adults had transferred to local authorities.
• If there was no increase in Council Tax the Council would receive additional grant of £1.212m.  The Executive planned to accept this offer but may need to revisit in the light of the final settlement.
• Budget assumptions had been based on low interest rates continuing throughout 2011/12.
• A pay increase of £250 for employees earning less than £21,000, in line with the Chancellor’s budget statement.  A pay freeze for employees earning £21,000 and above.

• The Council-wide pressures were in areas where the departmental allocation was not yet known but would be implemented in due course.
• There was pressure on staff to review business processes in order to save money.
• Regulations did not permit the Council to recover from schools the cost of the purchase of allowances to cover CO² emissions by schools.  The government was, however, being pressed to introduce changes enabling Councils to pass on the cost to schools.
• Roof work at Time Square had helped mitigate energy costs and improved the environmental efficiency.
• The Freedom March was a Royal Military Academy Borough event.

• There was a request for an investigation into the possibility of members accessing agenda papers without paper copies.
• Decisions relating to refresh of computers were scrutinised by ICT Steering Group, Corporate Management Team, Executive and O&S Commission.
• The Chief Officer: IT to present to the next meeting on the desktop refresh programme and the member ICT kit proposals.  Consultation on these proposals would be undertaken with members when a potential way forward had been determined
• The risks associated with deferring repairs to properties and assets.
• The Capital Programme external funding proposals for community centres would extend to the halls operated by Town and Parish Councils. The Director of Corporate Services explained that, as this external funding source for those facilities was Section 106, they would be considered as part of the usage of Section 106 monies, where the section 106 agreement identified that particular area as having need.
• A request to involve non-Executive members as far as possible with the process of spending section 106 money.
• Members expressed concern that over £2million of urgent repairs was being deferred.

The Commission noted the draft minutes of the O&S Panels and commented as follows:-

• Adult Social Care – no comment.

• Environment, Culture and Communities – 

Ø      Officers were investigating Development Control fees for retrospective planning applications.

Ø      Easthampstead Park Conference Centre was a Bracknell Forest asset.  If disposed of within the next six years, a share of any profit, after deducting new investment, would have to be distributed to the other Berkshire authorities.

• Children, Young People and Learning – no comment.

The Commission agreed that those members interested would meet as a Working Group to look at late changes made to the proposed budget.  The Executive agenda would be published on 7 February after which there would be a window of opportunity for the Commission to comment on the revisions.  The Working Group would meet on
9 February at 7.30pm.

The Chairman expressed the Commission’s appreciation of the officers’ hard work in the preparation of the budget.