Agenda item
Revenue Budget Report 2022/23
Minutes:
Consideration was given to a report of the Director of Finance which provided the Committee with the forecast budget reduction requirement and the Administration’s budget proposals for 2022/23 having regard to the Provisional Local Government Finance Settlement published on 16 December 2021.
The report presented the Council’s Revenue Budget for 2022/23 including the Administration’s revenue budget proposals for 2022/23. The report advised Members of the key policies and strategies that influenced the budget process, the initial budget reduction requirement for 2022/23, how that had been adjusted to arrive at a revised budget reduction requirement and then the means by which the budget is balanced.
Members were informed that, based on the latest estimates, the budget reduction requirement for 2022/23 has decreased from the previously reported figure of £31.900m to £24.781m, increasing to £33.826m after the technical adjustment for the Collection Fund deficit of £9.045m.
The report detailed the Administration’s budget reduction proposals. There were a total of 53 proposals expected todeliver savings of £6.268m and had an FTE impact of 22.6. The proposals also had an impact on 2023/24 of £1.895m and 2024/25 of £1.150m. Two of the proposals require investment of £0.405m in 2022/23 to deliver savings in 2023/24, these were:
a) ASC-BR1-548: Smarter Ways of Working £0.095m
b) ASC-BR1-552: Review Care and Support Plans - £0.310m
Assuming approval of the 2022/23 budget reduction proposals, and those from 2021/22 with a revised value, the budget reduction requirement for 2022/23 reduced to £22.091m, which would be addressed by the flexible use of capital receipts and the use of reserves.
The Committee examined the budget reduction proposals.
The Leader of the Council and Cabinet Member for Economic and Social Reform and the Head of Executive Services were in attendance to introduce the following proposals:-
CEX-BR1-513 Review of Executive Support Service
CEX-BR1-514 Chief Executive Management
PPL-BR1-501 Creating a Better Place - Income Generation
Members were informed that although presented as savings the proposals were due to cuts in Government funding.
Members asked for and received clarification on the following:-
· Would there still be capacity in the teams to deliver services with the adjustment to FTE’s – Members were advised that capacity was always an issue however, using different ways of working can enable service standards to be maintained.
The Deputy Leader and Cabinet Member for Neighbourhoods and the Director of Environmental Services were in attendance to introduce the following proposals:-
REF-BR1-519 Electric Cars
REF-BR1-520 Reduction of FTE in Community Safety Services
PPL-BR1-502 Additional Income Generation from new Flexi Parking Permit
PPL-BR1-506 Cemetery and Cremations
PPL-BR1-507 Highways and Highways Unity
PPL-BR1-508 Increase External Customer Base - Trade Waste
PPL-BR1-509 Increase Trade Fees and Charges - Trade Waste
PPL-BR1-510 Public Protection Restructures-Environmental Health & First Response
Members asked for and received clarification on the following:-
· Would there be any impact of the budget adjustment on the removal of Ash Dieback - Members were informed that the budget reduction would have no impact on the current service. There was also no proposal to change the funding for Japanese Knotweed removal.
The Cabinet Member for Health and Social Care, the Managing Director, Community Health and Social Care Services (DASS) and the Director of Public Health were in attendance to introduce the following proposals:-
ASC-BR1-548 Smarter Ways of Working
ASC-BR1-549 Income Maximisation for Adult Social Care
ASC-BR1-550 CHASC Other - General Operational
ASC-BR1-551 Core Management Fee Reduction - Miocare Group
ASC-BR1-552 Review Care and Support Plans
ASC-BR1-553 Increasing Community Enablement Throughput
ASC-BR1-554 Learning Disability Consultant Psychiatrist
ASC-BR1-555 Supported Living Voids Budget
ASC-BR1-556 Housing Related Support (Short Term Supported Housing)
REF-BR1-521 Smoking in Pregnancy Midwife
REF-BR1-522 Medicines Management
REF-BR1-523 NHS Health Checks EMIS Contract
REF-BR1-524 Sexual Health – Various
REF-BR1-525 Public Health Staffing
REF-BR1-526 Get Oldham Growing
Members asked for and received clarification of the following:-
· Was the Authority paying more for Care Plans than needed – it was noted that those with Care Plans may be given more hours than needed due to the profile of the population. The annual reviews would identify those that need more/less care. Demand for the service had increased 19% in the last 2 years and currently the waiting list was the longest it had ever been with over 400 people awaiting a Care Plan.
· Was there a chance for Get Oldham Growing to merge with the Northern Roots project.- Members felt that the project had done fantastic work and was not just about growing. Removing the post could cause a disproportionate impact on people on low income. In this regard the Committee expressed concern about this proposal and it was agreed to request Cabinet to consider, given the impact this budget reduction would have, that this budget reduction would not proceed.
The Cabinet Member for Education and Skills, the Director of Education, Skills & Early Years and the Director of Public Health were in attendance to introduce the following proposals:-
REF-BR1-527 Oldham Music Service - Fees & Charges
REF-BR1-528 Oldham Theatre Workshop - Fees & Charges
CHS-BR1-532 Income Generation - Educational Psychologists / QEST
CHS-BR1-534 Virtual School Team Manager - Pupil Premium Plus
CHS-BR1-535 Governor Services - Reduce Expenditure
CHS-BR1-536 Oldham Learning Reduce De-delegated Funding
CHS-BR1-537 General (non-staffing) Expenditure
Members asked for and received clarification of the following:-
· Had the schools been informed about the music service – it was noted that informal conversations had been had with schools. In increase was in line with previous years and schools value the service. It was accepted that some schools did struggle however Members were advised that school budgets would increase for 2022/23 as additional grant resources had been allocated by Government.
The Cabinet Member for Housing and the Director of Environmental Services were in attendance to introduce the following proposals:-
PPL-BR1-511 Public Protection Restructures - Building Control
PPL-BR1-503 Planning Income Fees
Members asked for and received clarification of the following:-
· Was there an opportunity to increase the income target again in the following year – due to the volume of applications it was felt with confidence that the income targets would be reached and the target could be increased further for the following year.
· Could Building Control be a niche market for apprenticeships – it was noted that this could be looked into by the team. It was a high demand area and junior Officers had the ability to work up to more senior roles.
The Cabinet Member for Employment and Enterprise was in attendance to introduce the proposal on which the Committee had no questions:-
PPL-BR1-504 Visit Oldham, Training Budget and Oldham Enterprise Trust
The Cabinet Member for Finance and Low Carbon on behalf of the Cabinet Member for Corporate Services, the Director of Workforce and Organisational Design and the Director of Legal were in attendance to introduce the following proposals:-
REF-BR1-529 Human Resources & Organisational Development
REF-BR1-530 Transformation & Reform - Vacant Posts Deletion
CEX-BR1-515 Elections
Members asked about the impact of not continuing to the GM elections initiative – Members were advised that the initiative had ceased and funding was therefore available for other purposes.
The Cabinet Member for Finance and Low Carbon on behalf of the Cabinet Member for Children and Young People and the Director of Education were in attendance to introduce the following proposals:-
CHS-BR1-538 Early Years Staffing Reduction
CHS-BR1-539 Delete Post - Designated Missing From Home
CHS-BR1-540 Reduce FTE of Children with Disabilities (CWD) Team
CHS-BR1-541 Delete Post - Corporate Parenting Manager
CHS-BR1-542 Delete 2 Social Workers from the Adoption Service
CHS-BR1-543 Delete Post - Social Worker in Permanence
CHS-BR1-544 Autism Youth Club
CHS-BR1-545 Do not renew MOMO
CHS-BR1-547 Savings on Targeted Youth Lot 3
Members asked for and received clarification of the following:-
· Adoption posts – it was noted that the posts had been vacant for some time and the service had been managing effectively.
· Autism Youth Club and parents view – it was noted that having listened to service user comments, a flexible provision that was personalised was needed. Other alternatives would be commissioned dependent on need.
The Deputy Leader and Cabinet Member for Finance and Low Carbon and the Director of Finance were in attendance to introduce the following proposals:-
CEX-BR1-516 Finance Service
CEX-BR1-517 Finance Service - Unity Contract
CEX-BR1-518 Treasury Management
PPL-BR1-505 Corporate Landlord and Facilities Management
PPL-BR1-512 Information and Communications Technology (ICT)
Members asked for and received clarification of the following:-
· Was the Hardship Fund being used in full – it was noted that the provision was available and was there for those with the need.
RESOLVED that the Policy Overview and Scrutiny Committee accepted and commended the following to Cabinet:
1. The policy landscape and context in which the Council is setting its revenue budget for 2022/23;
2. The key issues to be addressed in continuing to respond to the financial challenges facing the Council;
3. A proposed 2022/23 Council Tax increase of 3.99% for Oldham Council services (1.99% for general purposes and 2% Adult Social Care Precept) resulting in the charges set out at Table 19 of the report;
4. The financial forecasts for 2022/23 having regard to the Provisional Local Government Finance Settlement and associated funding announcements, an overall budget reduction requirement of £33.826m;
5. A revision to the Budget Reduction proposals approved for 2022/23 at the Budget Council of 4 March 2021 to a value of £5.467m;
6. The Flexible Use of Capital Receipts at a value of £2.500m;
7. The proposed use of £20.951m of reserves to balance the 2022/23 budget including £0.405m to support the delivery of budget reductions for 2023/24 and a transfer to reserves of £1.360m for Retained Business Rates;
8. The proposal to draw on the Collection Fund for major preceptors of £120.698m for Borough Wide services and £102.932m for Council services (subject to confirmation);
9. The proposed net revenue expenditure budget for 2022/23 for the Council set at £258.588m;
10.The proposed fees and charges as set out in the schedule included at Appendix 7;
11.The draft pay policy statement included at Appendix 8.
With regard to the 53 recurrent 2022/23 Budget Reduction proposals at a value of £6.268m with a further £1.895m for 2023/24 and £1.150m for 2024/25, the Committee commended 52 of the proposals to Cabinet. It however requested that Cabinet considered it approach to the 2022/23 proposal, REF-BR1-526 Get Oldham Growing at a value of £0.062m, with a view to withdrawing the proposal, given the impact that it would have.
Supporting documents:
- 2 Revenue Budget Report 2022-23 Policy Overview and Scrutiny Committee, item 6. PDF 865 KB
- 2a Appendix 1 - Dedicated Schools Grant 2021-22 final, item 6. PDF 194 KB
- 2b Appendix 2 - Calculation of Council Tax Tax Base 2022-23, item 6. PDF 114 KB
- 2c Appendix 3 - Current Budget Position 202223, item 6. PDF 82 KB
- 2d - Appendix 4 - Budget Reduction Summary, item 6. PDF 46 KB
- 2e Appendix 5 - Budget Reduction Proposals and Draft EIAs, item 6. PDF 3 MB
- 2f Appendix 6 - Budget Position 202223 post Budget Proposals, item 6. PDF 86 KB
- 2g Appendix 7 - Fees and Charges Schedule 202122 to 202223, item 6. PDF 810 KB
- 2h1 Appendix 8 - Pay Policy Statement March 2022, item 6. PDF 151 KB
- 2h2 Appendix 8a - Table 1 PPS Appendices Council December 2021, item 6. PDF 321 KB
- 2h3 Appendix 8b - Chart 1 Family Tree of Officers earning over 50k Dec 2021, item 6. PDF 238 KB
- 2h4 Appendix 8c - Table_2_Salaries_expressed_as_a_ratio_of_the_Chief_Executive_Dec 2021, item 6. PDF 83 KB