Agenda item

The report of the Head of Finance

The Strategic Director of Resources presented the report.

A Member asked for clarity on the Homelessness Strategy and the saving on it projected in the budget. In response, the Head of Housing advised that the new homelessness strategy would aim to reduce short term solutions which had been proved to be ineffective. This was actually predicted to save money as the Council would not be paying commercial rates to providers.

A Member asked about the Transformation Strategy and the role of the Change Consultant. In response, the Strategic Director of Resources advised that the proposed £500,000 for the Transformation Programme had been put aside but not yet allocated. Decision making authority would be delegated to the Chief Executive as part of the 2024/25 budget proposals. The Strategic Director then advised on the role of the Transformation lead. The Member remained concerned about the prospect of a cost-cutting consultancy exercise.

In response to several questions from Members, Officers set out some technical details with regards to the projected increases in both the Council Tax rate and the Council Tax base, the approach to projected future inflation, and the fact that the Local Government settlement appeared to have bridged the funding gap although Officers were still examining this.

A Member questioned several lines in the revenue budget in quite critical terms. In response, the Strategic Director explained that for some of this previous expenditure for the Training Budget the reason was that it had not been utilised, and he also offered to provide further information on various other queries.

A Member queried the planned £2 million investment in Stenson Square. She was particularly concerned with this expenditure because of cuts planned elsewhere and, she felt, the lack of transparency around the planned project. She wanted a pause on this until further information was available.

In response to a couple of questions from Members, Officers advised on the technicalities of moving money between the General Fund and Special Expenses, and between Parished and non-Parished areas.

Members discussed the £3.7 million investment in Council owned land, some were concerned and wanted to know how much of the £3.7 million had been allocated and signed off by Officers. The Strategic Director of Resources clarified that this was all subject to further business cases being brought forward.

A couple of Members expressed concern whether lines in the budget had received appropriate impact assessments and whether they had been adequately communicated to the public. In response, the Strategic Director of Resources advised that this was a draft budget and formal consultations with the public would begin on 10 January. The final budget will include appropriate impact assessments.

By affirmation of the meeting, it was

RESOLVED THAT: 

1)    Cabinet are recommended to pause all work on the Stenson Square project pending further information on the nature of the project to be presented to the Corporate Scrutiny Committee.

2)    Cabinet are recommended to not take forward the £1,500 cut in the grant to Ashby Museum.

3)    Officers are to provide a response to Members concerns regarding the impact of inflation upon the budget.

4)    Officers are to provide a more detailed explanation and clarification with regards to the nature of the £3.7 million investment planned in Council owned land within the budget, and what if any money had so far been spent on this.

5)    Officers are to provide the Committee with a rationale for £7,330 cut to the AgeUk grant, as set out within the draft budget.

6)    Officers are to provide clarification on the £280,000 increase in the leisure contract, as set out within the draft budget.

7)    Officers are to provide more detail on the general fund budget amendments to the MTFP.

8)    Officers are to provide a review of the funding for the demolition of the Hermitage Recreation Ground.

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