Agenda item

The Select Committee considered a report of the Head of Corporate Governance which outlined the Liberal Democrats’ suggested amendments to the Administration’s budget proposals for 2020/21.  The report identified additional savings proposals totalling £1.109m in 2021/22 and £0.279m in 2022/23 which could be considered individually or collectively.  There were also initial investments proposed that would be funded from the savings proposals and suggested amendments to the Capital Programme. 

The Deputy Leader of the Liberal Democrat Group and Shadow Cabinet Member for Finance and Green commended Officers for their assistance in compiling these budget proposals.  As an overview, the aims of the Liberal Democrat proposals were in addressing health, green issues, pavements, and the prosecution of anti-social behaviour and dog fouling, all issues that would feature most in Councillors’ casework.  Councillor Gloster then presented the proposals and addressed the enquiries of the Select Committee.  The effect of Covid was acknowledged, and a hope expressed that light could now be seen at the end of the tunnel with a move to a ‘new’ normal.  The Liberal Democrats did not underestimate the task and financial challenge facing the Council and that facing the Cabinet Member in presenting a budget, but it was believed that the submitted proposals were robust alternatives to enhance the life of residents across the Borough.

In respect of the Committee’s considerations, it was determined that the budget reduction proposals be considered first as these would be required to fund any alternate investment proposals that the Committee might wish to recommend to the Cabinet.

Liberal Democrat Alternative Budget Reduction Proposals

OPP-BR1-201 - Additional Vacancy Management factor to achieve greater efficiency including limiting the present use of agency staff and consultants (£0.473m)

The proposal sought to assist in reducing the number of agency staff and consultants used across the Council further by applying an Additional Vacancy Management factor of 0.75% to all Council mainstream employee budgets. 

In response to a query as to where the proposed figure had been drawn from, the Committee was advised that this figure had been considered achievable in discussions with the Head of Corporate Governance and Responsible Officers. 

OPP-BR1-202 - Reduction in the amount of stationery purchased across the authority (£0.010m)

It was proposed that stationery be centralised in particular locations across the Borough to ensure better value for money through increased understanding of which items are required, volumes etc.  It was also proposed this saving could temporarily increase due to the current home working, with a budget reduction of £0.010m for 2021/22, of which £0.005m could be built back into the budget for 2022/23 in the event staff returning to office working. 

The location of centralised stores and who would be responsible for collecting stationary was queried.  The Committee was advised that the advice from Officers was that this was achievable and as such, taken as correct. 

OPP-BR1-203 - Reduce refreshments budget (£0.004m)

It was proposed to reduce the mainstream budget for refreshments by 10% for 2021/22, with a further 10% reduction in 2022/23, it being suggested that pre-Covid several meetings took place every day that incurred extra costs if refreshments were provided.  The continuation of virtual meetings provided an opportunity for change. 

It was acknowledged that things would change as a result of Covid but, in relation to this and other proposals, it was suggested that the use of some things might increase while others decreased, it being difficult to say.

OPP-BR1-204 – Council-wide review of income generation targets (£0.100m)

It was proposed that a full review of income targets across the Council be undertaken to identify other areas in addition to Section 38 and Section 278 inspections within the Highways service where income targets are overachieved. It was believed that this would reasonably generate around £0.200m but, given the far-reaching nature of the proposal, it was suggested that it be phased over two financial years with £0.100m identified for 2021/22 and a further £0.100m for 2022/23.

Comment was made that, from personal experience, the Council did not have a good history of setting income targets and it was suggested that a balanced budget reliant on income targets would be difficult to achieve.

OPP-BR1-205 - Reduce in mileage budgets to reflect change in work practices (£0.050m)

The proposal was to reduce mileage budgets due to the increased number of staff working from home and the increased use of Teams meetings reducing the need for use of a personal vehicle.

OPP-BR1-206 - Review of car allowances as previously promised to reduce the amount paid as a lump sum to staff doing zero or minimal mileage (£0.037m)

It was proposed that a review of the posts which attract essential car user status be undertaken with the intention of removing the lump sum payment from posts where users routinely record zero or very few miles.  It was noted to the Committee that many staff who did use cars regularly did not hold such status.  In presenting the proposal, it was further noted that proposal had been before the Committee several times previously, with the promised review failing to appear.

Members acknowledged the reported position with regard to the review of care allowances.  The Director of Workforce and Organisational Design advised that a decision had been made to pause the review in March 2020 so as not to upset staff by negotiating a core term and condition while addressing the pandemic.  The Committee was advised that this matter would be part of the consideration to reflect new ways of working.

OPP-BR1-207 – Reduction in the subsidisation of Trade Union facilities time (£0.035m)

It was proposed that the trade union subsidy provided by the Council be reduced following a consistent reduction in trade union membership as evidenced by decreasing numbers of staff opting to pay membership through payroll.  The Liberal Democrats had reviewed subsidies provided to Trade Unions by neighbouring Greater Manchester Councils and felt that the reduction proposed would bring Oldham Council’s contributions more in line with other areas such as Tameside.

Members noted that the figure quoted for trade union membership relied on payroll data which did not account for those who paid by direct debit or other means, and that the Trade Unions worked with the employer, playing a positive role in, for example, helping get policies through.  The Director of Workforce and Organisational Design confirmed that Council records did not show who is a member of a Trade Union; advised that the budget provided facilities time for three unions in a way that reflected their memberships and that the Trade Unions had been instrumental in the Covid response; and commented on the position across Greater Manchester generally.  While acknowledging comment made regarding the measure used to determine trade union membership, Councillor Gloster noted the fall in numbers employed by the Council and the infrequency with which meetings of the Local Joint Consultative Committee had been held.

OPP-BR1-208 - Reduction in the General Training Budget (£0.150m)

It was proposed that a one-off reduction made in 2018/19 to the Council’s general training budget be made permanent.  There were now fewer staff, and more training should be delivered on-line and self-directed training encouraged.

The Chair commented that with new ways of working being developed, more training rather than less would be required.

OPP-BR1-209 - Reconsideration of Council priorities with regards to the Marketing and Communications Service (£0.250m)

The proposal considered there was further scope to reduce spend on this non-statutory service and proposed a redesign of the Communications and research team and the generation of £0.005m through the sale of advertising on the Council website.

The Chair queried whether this proposal would work, noting the many and sometimes varying messages that had needed to be circulated around Covid restrictions, injections etc, and suggested it could be counter-productive to change things at a time when communications were supportive of efforts.

OPP-BR1-210 – Reduction in the scale of the Capital Programme (no pro forma) (£0.133m in 2022/23)

 It was proposed that those Capital Schemes funded through prudential borrowing which has a direct impact on revenue budgets should be reviewed, and only those considered a priority should go ahead, it being further considered that delaying just one of the ‘Creating a Better Place’ proposals by one year would result in a revenue saving of £0.133m in 2022/23.  A Member noted that this proposal, as shown in the report, was not supported by a pro-forma.

In concluding the consideration of the Liberal Democrat Budget Reduction proposals, the Committee RESOLVED that none of the Budget Reduction proposals be recommended to the Cabinet for adoption.

The Chair noted that the Committee had not objected to the proposals and the Cabinet could be advised to bear these proposals in mind.  The concerns about the review of mileage budgets were shared and the position with regard to this would be chased up.

Notwithstanding the decision not to support the budget reduction proposals, the Chair invited the Deputy Leader of the Liberal Democrat Group to introduce the investment proposals to -

·         provide a revenue fund to assist the Oldham Clinical Commissioning Group (CCG) work up detailed business cases for the proposed new health centres in Shaw, Saddleworth and Chadderton (£0.750m);

·         reverse the Administration's reduction in Parish Council Grant funding (£0.015m);

·         create a dedicated fund to replace and maintain signage across the borough and other road safety measures (£0.100m);

·         increase the investment in tackling environmental crime to combat issues such as fly tipping and dog fouling across the borough (£0.294m); and

·         create a reserve fund to increase signage, education and implement light-touch policing around the introduction of 20 mile per hour zones for traffic (“20 is Plenty”), especially in front of Schools and other high-risk areas (£0.200m).

The Liberal Democrat budget proposals had also included the following alternative Capital Programme 2020/21 to 2024/25 measures –

·         new health centres in Shaw, Saddleworth and Chadderton to tackle the increasing health deprivation within the borough - provision of £18.000m over the four financial years 2022/23-2025/26 with Shaw being identified as the priority, and that two additional healthcare centres in Saddleworth and Chadderton are developed to ensure consistency of health provision across the whole of Oldham;

·         expedite the work around Green Energy and invest in solutions to address Climate change and to ensure carbon neutrality - additional capital of £6.500 million over the period 2021/22 to 2025/26; £0.500m in 2021/22 with £1.500m in each year thereafter up to 2025/26, be made available for this purpose, funding being made available for the priority areas of Create Greener Buildings and Greener Transport; and

·         create a specific investment fund for the borough's footpaths and bring them up to standard - a specific investment fund of £2.500m for the period 2021/22 to 2025/26 be made available within the Capital Programme, equating to £0.500m per financial year over this period. 

The Chair thanked the Deputy Leader of the Liberal Democrat Group and Shadow Cabinet Member for Finance and Green for his work in preparing the papers for consideration by the Committee.

In concluding the consideration of the alternative proposals, it was noted that the Committee was not in a position to give its support to the alternate investment proposals given its prior decision regarding the savings proposals.

RESOLVED that the Liberal Democrat Alternative Liberal Democrat Investment Proposals and Capital Programme proposals be noted.