Agenda item

The report of the Head of Finance

The Strategic Director of Resources presented the report.

A Member asked whether the Local Nutrient Mitigation Fund was addressing existing problems or future problems. The Strategic Director of Resources said that he would have to consult Planning Officers outside of the meeting and come back to the Member.

A Member asked whether staffing and corporate costs can be accounted for as capital as opposed to revenue expenditure. The Strategic Director of Resources advised that in certain circumstances some such costs could be accounted as capital expenditure, within stringent limits.

In response to a couple of Member questions, the Strategic Director of Resources explained what Investment Income referred to, and what Officers defined an overreliance on Business Rates Funding as.

The Strategic Director of Resources set out for the Committee some of the financial assumptions which were built into short and medium term plans. Some Members felt that they would have expected more growth than predicted. The Chair was concerned that if the projections had been miscalculated this might have serious cumulative impacts. The Strategic Director of resources was happy to provide further information on what the assumptions were.

A discussion was had around staffing levels and vacancy management. Members were concerned that about service provision and whether staffing costs were being transparently presented. The Strategic Director of Communities advised that vacancy management was a question of how resources were managed and was, categorically, not a policy of deliberately keeping vacancies open.

A discussion was had around the Transformation Plan. Members were concerned that this had not so far been communicated or appropriately scrutinised. Officers advised the Committee that the thoughts of the Corporate Leadership Team and staff were being synthesised, such as at Staff Road Shows; they were also planning to bring a report to the Corporate Scrutiny Committee in February. The Chair felt the views of Councillors should be solicited, and Officers said that these views would also be welcomed.

A discussion was then had around the 2024/5 pay award. Members were concerned whether the budget was sufficient to cover the likely pay award, especially as this had been underbudgeted in recent years. Members also queried how vacancy management was fed into projections. The Strategic Director of Resources advised that the budgeted 3% rise was based on OBR forecasts that inflation was coming down, although he accepted there was some risk involved in this. He also advised that yes, vacancy management was fed into projections, and he set out how this operated. He was happy to provide the Committee a sensitivity analysis on the 2024/5 pay award.

A Member noted that the report suggested that the HRA budget would not be fully spent; this would have adverse impacts. In response, the Strategic Director of Communities set out for the Committee how HRA was budgeted for and how it operated procedurally so that resources were appropriately directed.

The Chair emphasised the need to clear the backlog and spend the entirety of the HRA budget. He welcomed the administration’s turn towards recognising future risk, and the Medium Term Financial Plan looked more robust; he also welcomed the recognition that the precept needed increasing. Nevertheless, he felt service provision was currently failing.

By affirmation of the meeting, it was

RESOLVED THAT:

1)    Officers are to provide a sensitivity analysis on the impact of a higher staff pay award to the Corporate Scrutiny Committee.

2)    A report on the Transformation project be brought to the next meeting of the Corporate Scrutiny Committee.

The Chair thanked Members for their comments, which would be presented to Cabinet on 9 January.