Agenda and minutes

The Chair welcomed everyone to the meeting and wished everyone a Happy New Year.

To declare any personal / prejudicial interests for the purpose of Section 81 (3) of the Local Government Act 2000 and paragraphs 8 to 12 of the Members Code of Conduct.

Councillor P Grahame declared a personal interest in relation to Agenda Item 7 (Minute No. 56 refers), Budget Strategy 2010/11, in respect of the Swarcliffe PFI Fund, in her capacity as a member of the Swardale Swarcliffe Eastwood Residents’ Association.

To receive any apologies for absence.

Apologies for absence from the meeting were submitted on behalf of Councillors P Ewens, V Kendall, A Lowe and A McKenna.

To confirm as a correct record the enclosed minutes of the meeting held on 7^th December 2009.

RESOLVED – That the minutes of the meeting held on 7th December 2009 be confirmed as a correct record.

To receive and consider the attached report of the Director of Resources.

Further to Minute No. 48, 7^th December 2009, the Director of Resources submitted a report outlining in broad terms the Council’s current financial position and the major considerations to be taken into account when establishing a budget for the 2010/11 financial year.  The Council would be considering the 2010/11 budget at its next meeting on 24^th February.

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

-  Doug Meeson, Chief Officer (Financial Management).

-  Helen Mylan, Head of Finance (Corporate Financial Management).

In brief summary, the main areas of discussion were:-

·  Doug Meeson introduced the report and highlighted the following issues:-

Ø  The fact that 2010/11 was the third year of the medium term financial plan.  To a large degree, due to the financial difficulties which had developed in the world economy since 2008, the plan had been overtaken by events and was in need of significant review.  A fundamental review of likely income and Council priorities was now necessary against a backdrop of severe restraints on public spending levels in the foreseeable future.

Ø  How Leeds had fared comparatively with other types of local authorities from Local Government Finance Settlement 2008-09 – 2010-11 (paragraphs 2.3 and 2.4 of the report).

Ø  The principles supporting the method of allocation of resources within the current financial plan (paragraph 2.9 refers).

Ø  Current resource allocations by Directorate (paragraph 2.10).

Ø  The fact that in spite of difficulties in recent years, Leeds still had one of the lowest Council Tax charges in the country. 

Ø  The £20m of budget savings built into the 2009/10 budget (paragraph 2.13) and the other short term funding sources used in the budget (paragraph 2.14).

Ø  Further to Minute No. 48, 7^th December 2009, the actions taken to address the estimated £5.5m deficit (as at month 6) in respect of the 2009/10 budget (paragraph 2.15).

Ø  The changing financial landscape and the Council’s financial planning arrangements (appendix to report).

Ø  The Government’s financial capping powers.

Ø  Possible levels of reserves for 2010/11.

Ø  A number of key budget pressures in 2010/11 (paragraph 5.3).

Ø  The possible effect of the budget process on the Council’s capital programme and PFI schemes.

Ø  The Dedicated Schools Budget (paragraph 6).

Ø  The Housing Revenue Account situation and guideline rent increases (paragraph 7).

Ø  Projected future budget pressures and their estimated effect on the Council’s finances (paragraph 8.2).

·  The Council had been successful in delivering efficiency savings in recent years to help to balance the budget, and the possible benefits of the DECATS (Delivering Effective Corporate and Transactional Services) exercise, referred to at the last meeting, were as yet unknown.  If the Council was faced with a more radical need to save a further, say, £10m per annum as a result of Government diktat, then it would be possible, but it would invoke a more fundamental review of priorities for spending.  A review of the Council’s Strategic Plan was already underway.

·  Members made reference to local  ...  view the full minutes text for item 56.

Further to Minute No. 27, 7^th September 2009, and Minute No. 49, 7^th December 2009, to receive and consider the attached report of the Head of Scrutiny and Member Development.

Further to Minute No. 27, 7^th September 2009 and Minute No. 49, 7^th December 2009, the Board received evidence from Doug Meeson, Chief Officer (Financial Management) and Neil Hunter (Head of Internal Audit) as part of its ongoing inquiry into the use and costs of external consultants.

In addition to the report circulated with the agenda, Neil Hunter distributed a draft best practice guide, based on Internal Audit’s limited involvement and knowledge to date on this subject, which might assist the Board in drawing up its final recommendations.

The Head of Scrutiny and Member Development suggested that the document circulated, added to similar work carried out by the Yorkshire and Humberside Regional Improvement and Efficiency Partnership (RIEP) (Minute No. 49, 7^th December 2009 refers) and, allied to the proposed report back to the February Board meeting regarding four particular contracts (2 high value and 2 low value), would probably be sufficient evidence for the Board to draw up its final Inquiry report.

RESOLVED – That, subject to the above comments, the report be received and noted.

(NB: 1 Councillor Parnham left the meeting at 15:30 and rejoined the meeting at 15:34, during the consideration of this item.

  2  Councillor J Lewis left the meeting at 15:35 at the conclusion of this item.

To receive and consider the attached report of the Head of Scrutiny and Member Development.

The Head of Scrutiny and Member Development submitted the Board’s Work Programme, updated to reflect decisions taken at previous meetings, together with a relevant extract from the Council’s Forward Plan of Key Decisions for the period 1^st January - 30^th April 2010 and the minutes of the Executive Board meeting held on 9^th December 2009.

RESOLVED – That, subject to any changes necessary as a result of today’s meeting, and the request for further information in respect of Executive Board Minute No. 141 (see earlier Minute No. 56), the Board’s Work Programme be approved.

Monday 1^st February 2010

Monday 1^st March 2010

Monday 29^th March 2010

All at 10.00am (Pre-Meetings 9.30am)

Monday, 1^st February 2010.

Monday, 1^st March 2010.

Monday, 29^th March 2010.

All at 10.00 am (pre-meetings at 9.30 am).