Agenda item

Report to follow

Consideration was given to a report on the Conservative Budget Amendment Proposals 2023/24 which presented to the Committee a series of amendments in addition to those proposals already presented by the Administration to the Scrutiny Committee on the 2023/24 Budget.

Deputy Leader of the Conservative Group and the Shadow Cabinet Member for Finance and Low Carbon Councillor Woodvine presented the report.

Councillor Woodvine advised that the report proposed, for the second consecutive year, a freeze in Council Tax for General Purposes.  He also advised that while the Conservatives in Opposition do support spending on Adult Social Care across the Borough, they do not support some of the Administration’s policy priorities.

The proposed amendments to the Administration’s 2023/24 Budget contained in this Report take into consideration the international situations such as the Russo-Ukrainian War, the United Kingdom’s (U.K.) withdrawal from the European Union (EU), and the Covid-19 pandemic that have made the financial situation for all Local Authorities worse than in previous times. While the Conservative Group understood and appreciated the difficulties so many Councils are facing, financially, they do believe further economies could be made in Oldham.

The Conservative Group also believes the generous Local Government settlement set out by the U.K. Government in Westminster had improved the financial situation very positively. In addition, thanks to the investment from His Majesty’s Government in the form of the Household Support Fund Grant and the Council Tax Support Fund, which have eased the burden for families and individuals experiencing cost-of-living pressures, the Conservative Group proposes to replenish reserves by discontinuing the Administration’s plans to replicate the same service covered by these grants.

Also taken into consideration during the production of the proposed amendments in the report are the parameters in which Oldham Council have to work within. That is, direction set by His Majesty’s Government, in policy areas such as Education, and the strategic oversight of the Greater Manchester Combined Authority across the Metropolitan County. The main purpose of the proposals in the report  ensure that the people living in Oldham do not have to pay a penny more as they compete with the pressures of the cost-of-living situation. The priority of the Conservative Group at this time is to keep taxation at the lowest possible level.

The proposals, while making further Budget reductions, do not directly impact any of the Council’s statutory services and residents should not feel any direct result of them – that has been the priority of the Conservative Group. The Conservatives in Opposition are retaining resource in statutory services, which residents expect to be delivered well, but asking this Council to feel the pinch for itself and giving residents much-needed relief in freezing Council Tax in these inflationary times.

The Conservative Group consider this is achievable through significant savings proposals identified within two years which will reduce the Council’s base budget requirement by over £3m on an annual basis (of which £2.748m will be delivered in 2023/24). This includes a partial reversal of the Administration’s response to the cost of living pressures, which will save some £1.290m in 2023/24. These savings will enable a reduction in the ruling Administration’s proposed use of reserves of some £0.662m in 2023/24 (and a further £0.345m in 2024/25). This increased financial resilience can be used to reduce Council Tax increases in future years.

OPP-BR1-302- Discontinuation of District Partnerships

In response to a question, Councillor Woodvine, informed the Committee that this was expenditure which is currently spent on staff and is considered to be an ineffective use of Council money. He made reference to details of the proposal at paragraphs 3.11 – 3.15 in the report. He felt that Councillors should take over the direct responsibility to carry out the work of the District Partnerships and this would prove better value for money. In presenting this budget proposal, the Conservatives did not believe it would have an adverse impact on the community.

One Member felt that whilst they agreed in part with the proposals there was an element where responses to individuals would be impacted by the abolition of all District Partnership working.

A Member suggested that removing Ward Councillor budgets will have a negative impact on small projects which Councillors would support to the extent that the projects would not be possible in the future.

Members were reminded that the Council has moved into Place Based Working and the District Partnerships, in particular, with the coordinator are essential to take forward the Place Based operating model.  It was therefore considered that this will save the Council a significant amount of money in bringing services together locally and by those services being integrated. Reference was made to the Youth Involvement Officer who has brought in significant external funds by working with Councillors and assisted the  voluntary sector prepare funding bids. These would all be lost. How would these funds be replaced?

Councillor Woodvine responded and informed the Committee that the Conservatives do not believe the District Partnerships are effective and the £1.6m is a straightforward way of economising.

The Chair requested detail of how the District Partnership functions will be allocated amongst the workforce. He was of the view that if volunteer groups are utilised, they will need support in delivering projects and how will that be addressed?

Councillor Woodvine informed Members that the Conservatives  see the primary functions as Case Work and Coordination. Case Work can be done by direct liaison between elected Members and staff in respective Directorates. Elected Members will work in all areas including doing case work and coordination. Voluntary Groups will not have these responsibilities.

OPP-BR1-301 Reduction in Executive Management costs through deletion of posts

Concern was expressed at this proposal. A Member asked whether a workload study been carried out and how would the work that these officers undertake be allocated including the delivery of Strategic Change?

Councillor Woodvine informed the Committee that the work would be allocated to the Directors. There would be no reduction in the accountability as this would be taken on at Director level and Directors would be  accountable to the Chief Executive. No workload assessment had been undertaken at this stage.

Freezing Council Tax

A Member suggested that freezing Council Tax will have a negative impact on some Statutory and some Non-Statutory services which are necessary for the people of Oldham. Vulnerable people need direct support, people need the support of the Welfare Rights Service which will be impacted.

Part of the recent national finance settlement and the Government expectation that Council Tax increases would be maximised was highlighted by a Member.

In response, the point was made that whilst Council Tax increase maximisation maybe national government policy, the proposal was a local decision.

The Committee was informed that the Council Tax freeze for General Purposes will help people keep more of their income and give some financial benefit in the light of the cost of living pressures. The freeze would be for one year after which it would be reviewed. It was emphasised that the Conservative reductions are in addition to the proposals which have already been suggested by the Administration which will impact on the community.

Cost of Living Initiative

A Member asked, when referring to the provision of some elements of the Cost of Living Initiative while it’s being wound down, which aspects of the scheme would this money support and how would the priorities be determined?

Councillor Woodvine informed the Committee that the elements to be continued were those aspects that have already been committed by the Administration.  The whole initiative would be ceased in the next financial year.

A Member highlighted that the current £3m initiative is to help people in the economic crisis and a significant number of people have benefitted substantially from this. It was suggested that by proceeding with the proposal to freeze Council Tax, it would benefit people around 10-20p a week.

Councillor Woodvine informed the Committee that all householders would have more money in their pockets without the Council Tax increase. £3m will not tackle the cost of living problems completely. He believed that £3m is targeted ineffectively.

Resolved: That the Committee did not accept the Conservative Party budget reduction proposals and did not commend them to Cabinet.