Agenda item

To receive and consider a report from the Head of Governance and Scrutiny Support introducing the additional information identified by the Scrutiny Board  as part of its consideration of the initial 2017/18 budget proposals agreed by the Executive Board at its meeting on 14 December 2016.

The Scrutiny Board received a report from the Head of Governance and Scrutiny Support introducing the additional information identified by the Scrutiny Board as part of its consideration of the initial 2017/18 budget proposals agreed by the Executive Board at its meeting on 14 December 2016.

The following were in attendance for the discussion and to address questions from the Scrutiny Board.

·  Councillor James Lewis – Executive Board Member for Strategy and Resources

·  Alan Gay – Deputy Chief Executive

·  Douglas Meeson – Chief Officer (Financial Services), Strategy and Resources

The Scrutiny Board raised the following matters:

·  Pension Costs – with the West Yorkshire Pension Fund (WYPF) actuary now indicating an employer’s rate of 15.9% required. The Board noted that the Council met recently with the WYPF actuary and is awaiting a response about potential options to mitigate this additional pressure.

·  Budgeted commissioning savings and the responsibility placed upon each directorate to effectively measure and monitor the impacts of these.

·  Concern remained that the Council was still awaiting approval for the Children’s Services application for Department for Education ‘Innovation Fund’ and, if unsuccessful, the shortfall would be funded through Council Reserves during 2017/18.  Should the use of reserves become necessary, it was important to produce a detailed plan to show (a) how the reserves would be ‘paid back’; and (b) how the shortfall would be addressed in the longer-term. 

·  Children’s Services Dedicated Schools Grant Overspend and the potential impact on the general fund if the School Forum does not agree for the deficit to be carried forward into 2017/18 and in subsequent years until the deficit is eliminated.  The Board stressed the need for a decision to be made before the Executive Board’s February meeting. 

·  Key areas of Children’s Services budget overspend in 2016/17 and the consequential impacts on the 2017/18 budget. Particular reference was made to the impact of the number of Children Looked After (CLA) and Transport Costs:  The Board questioned why these budget pressures had not been anticipated earlier.

·  The Scrutiny Board also reflected on its ongoing consideration of ‘the Leeds £’ and how this impacted on the Council’s budget

The Board agreed to make a number of recommendations to the Executive Board, including the need for any directorate anticipating a significant budget overspend to work closely and proactively with the relevant Scrutiny Board(s) in ensuring that there is robust financial risk management and transition planning put in place.

RESOLVED –

(a)  That the information presented be noted.

(b)  That for all proposed budget savings, the Executive Board ensures there is a clear narrative that explains how the savings will be achieved, including (but not limited to) service redesign and service commissioning/ decommissioning.

(c)  That, during 2017/18, the Executive Board supports a further review of Fees and Charges, including revisiting the previous report and recommendations from Scrutiny Board (Strategy and Resources) to help ensure the Council maximises its income streams. 

(d)  That, as part of the development of the ‘Leeds £’ approach, Executive Board supports the need for a review of joint funding arrangements in order to help ensure a consistent and strategic approach that is fair and equitable to all partners involved.

(e)  That, where any directorate is anticipating a significant budget overspend, the Executive Board supports the need for the Section 151 Officer and the relevant director to work closely and proactively with the relevant Scrutiny Board to provide suitable assurance that there is robust financial risk management and transition planning in place.