Agenda item

To receive and consider the attached report of the Head of Policy, Performance and Improvement.

The Board agreed to consider Agenda Items 7 and 8 together because of the links between the information contained in both reports.

In attendance at the meeting and responding to Member’s queries and comments were:-

-  Councillor Richard Brett, Leader of the Council and Executive Member (Central and Corporate Functions).

-  James Rogers, Assistant Chief Executive (Planning, Policy and Improvement)

-  Doug Meeson, Chief Officer (Financial Management)

-  Helen Mylan, Head of Finance (Corporate)

-  Helena Phillips, Chief Officer (Resources and Strategy)

-  Alex Watson, HR Manager, Corporate HR

In brief summary, the main issues discussed were:-

·  Whether the Council found itself in a different position, budget-wise, than it was 2 years ago?

The Leader of the Council made reference to the national and international economic recession, which was having a significant impact on the Council’s projected budget.  Significant reductions in income were being experienced, including planning, building and land charge fees, commercial rent income, income from sporting facilities, nursery fees and car parks.  At the same time, service demand was increasing, as was benefit take-up.  Based on Quarter 1 projections, the Council faced an estimated budget overspend of £10.9m at the end of the 2009/10 financial year, unless measures were taken to address matters;

The Council had already embarked, as a result of the budget setting exercise, on a widespread staffing review, with a target of employing at least 450 less staff by the end of the financial year, and this work was progressing;

Additionally, when the current projected overspend was identified, Executive Members and Directors were instructed to look again at service and staffing levels, to identify even greater efficiencies which would redress the balance, and this work was also ongoing.  Details of the issues and broad indications of the measures being considered by Departments were contained in the report to the Executive Board on 26^th August 2009, a copy of which was before the Scrutiny Board today;

The Leader of the Council stated that he was not prepared to speculate on what further measures might be necessary in order to address the projected budget deficit.  The Executive Board would consider, in due course, Director’s proposals.  However, the Leader gave an assurance that front line, core services vital to the welfare of Leeds citizens would not be affected;

·  Costs of looked-after children – In response to a specific query regarding the large projected overspend (£2.1m) in respect of these costs, the Leader of the Council categorised this expenditure as one of the front-line, core services he had earlier referred to, where it was vital that the service be maintained;

·  Staffing levels – In response to another query, an undertaking was given to supply Board Members with details of the numbers and designations of staff who had left the Council in the past 6 months.  Reference was also made to a slow down in the level of so-called ‘natural wastage’, i.e. staff leaving of their own volition for various reasons, and perhaps this was unsurprising in the current economic climate;

·  In response to queries regarding performance indicators BP-30 and BP-31 - the number of major projects not receiving independent project assurance – it was reported that this was a relatively new Council Business Plan indicator and work was ongoing to ensure that all projects would be contacted during Quarter 2 to arrange independent project assurance or to complete an initial ‘health-check’ review;

·  Asset management – The significant levels of income from asset sales which the Council had enjoyed in recent years had been adversely affected by the economic downturn, but assets valued at £250,000 or less continued to attract interest.  An assurance was given that the markets were constantly monitored to ensure that the Council was not under-selling its assets.  One effect of the reduction in capital receipts was that the Council had to borrow more to fund its programme and, of course, there were costs attached to borrowing;

·  The strides being taken by the Council in reducing its CO₂ emissions was acknowledged (NI-185), as was the significant increase in performance under local indicator BSC-8, the percentage of undisputed invoices being paid by the Council within 30 days of receipt;

·  An undertaking was given to supply Board Members with further information in respect of Business Plan indicator BP-05c, and the work being done with ALMOs regarding rent collection levels and the impact of the current recession on those levels;

·  Business Plan indicator NI179 - percentage of cash releasing efficiency savings made (cumulative over 3 years).  This was measured six-monthly, so no figures were available for Quarter 1.  However, all Directorates were required to keep a record of these, and the target of £28.759m included nearly £12m that should be generated from the capital programme, but this was a very difficult area in which to measure such gains ;

·  An undertaking was given to supply Board Members with ‘before’ and ‘after’ figures in respect of under-16 and over-60 swimmers using Council  facilities, i.e. the numbers of users and the income generated before the national Government directive regarding free swimming sessions, and the number of participants now in those two categories;

·  in response to a query regarding the possible financial effects of the industrial action involving Council refuse collectors and street cleaners, the Leader of the Council stated that it was too early to gauge;

RESOLVED –

a)  That the Leader of the Council and the officers be thanked for their attendance and for their responses to Member’s queries and comments.

b)  That, subject to the requests for further information, the reports be received and noted.

(NB. Councillor Hamilton joined the meeting at 10.22 am, during this item.)