Agenda item

To consider a report from the Head of Governance and Scrutiny Support that introduces details of the initial 2019/20 budget proposals presented to the Executive Board at its meeting on 19 December 2018.

The report of the Head of Governance and Scrutiny Support set out the initial budget proposals for 2019/20. In accordance with the Council’s budget and policy framework it was referred by the Executive Board to Scrutiny for consideration.

In attendance at the meeting were:

·  Councillor James Lewis – Executive Member for Resources and Sustainability

·  Councillor Jonathan Pryor – Executive Member for Learning, Skills and Employment

·  Neil Evans – Director of Resources and Strategy

·  Doug Meeson – Chief Officer, Financial Services

·  Richard Ellis – Head of Finance

·  Mark Amson – Business Rates Manager

·  John Bywater – Head of Finance

·  Cluny Macpherson – Chief Officer, Culture and Sport

In consideration of the report, the following areas were discussed:

·  Elected Member training – The Board raised the issue of Member Development and the potential use of the Apprenticeship Levy.  However, it was advised that only accredited training programmes could qualify for the Apprenticeship Levy and that the budget allows for Member development separately.

·  Managing financial risks – Particular reference was made to recent studies and reports from the National Audit Office regarding the financial sustainability of local authorities. Whilst it was noted that other authorities were facing severe financial pressures in services such as Adult Social Care and Children’s Services, such pressures were being contained in order to avoid Leeds being at crisis point like many other authorities. Linked to this, particular acknowledgement was given to the Council’s focus on targeting resources into preventative measures.

·  Preparing for Brexit – the Board discussed the need to prepare for service provision post 29^th March 2019 and the UK’s planned exit from the European Union.

·  Implications of Right to Buy – The Board was advised that a representation was to be made to Central Government raising concerns that the Right to Buy process could be undermined by the claims that private landlords buy the properties to rent. It was noted that the Council was also lobbying the Government for the whole of Right to Buy receipts to be retained by local authorities.

·  Future management of the Settlement Funding Assessment – Whilst the Board discussed the wider consideration of the core spending power assessment of funding coming to Leeds and also the implications surrounding the national Growth and Infrastructure Bill, particular importance was placed upon the Council’s duty to demonstrate value for money and financial sustainability with regard to the management of the Settlement Funding Assessment.  Linked to this, concerns were expressed that the 2019/20 represents the final year of the agreed 4-year funding offer, thereby intensifying financial uncertainty for the future.

RESOLVED –

a)  That the Board notes the Executive’s initial 2019/20 budget proposals as set out in the attached Executive Board report;

b)  That the Board’s comments are reflected as part of the Scrutiny submission to Executive Board for its consideration.