Issue - meetings

To note the position and the relevant risks regarding the Savings Overview, consider the decisions for the Cabinet and comment as necessary.

DECISION:

• To accept the report
• To note the progress, the position, and the relevant risks in the context of the Savings Overview

Submitted - the report of the Cabinet Member for Finance requesting that the Committee notes the position and relevant risks in respect of the Savings Overview and considers recommendations to the Cabinet (23-01-2024) and provides comments as required. The Cabinet Member noted that the savings situation had intensified and that realising savings was a cause for concern.

            The Assistant Head of Finance reiterated, ⁠

·         To close the funding deficit, £7.6 million worth of savings had to be implemented during 2023/24, which was a combination of almost one million previously approved, savings for Schools of £1.1 million, £3 million for Council departments and a further £2.4 million in reviewing the Council's capital debt repayment policy.

·         In recent years, and as had been consistently reported to this Committee, it was seen that there were difficulties in realising savings in some fields (which was prominent in the Adults, Health and Well-being Department and in the field of Waste). Consequently, £2 million worth of plans, that had substantial risks to realise, had been deleted as part of the End of August Review.

⁠Reference was made to the historical savings scheme for the period from the 2015/16 financial year up until the 2023/24 financial year and attention was given to the fact that 98%, which was over £33.7 million of the £34.3 million of savings, had been realised by now.

In the context of new schemes in the current financial year, it was reported that 81% of the 2023/24 savings had already been realised and a further 6% was in place to be realised on time. ⁠It was highlighted that there had been a slight delay to realise £694k worth of savings from the 2023/24 scheme however, no problems had been anticipated by the Departments to realise these. ⁠It was reiterated that the majority of this amount included savings of £539k from schools, that was slipping because schools worked according to the academic year – therefore there was slippage to the next financial year.

⁠Reference was made to the value of the savings that had already been approved for 2024/25 onwards, which highlighted that further savings and cuts for 2024/25 were already under consideration by the Council. ⁠These would be subject to the Committee’s report soon.

It was therefore explained that £39 million of savings had been realised, namely 96% of the required £41 million over the period. ⁠It was anticipated that a further 1% would be realised by the end of the financial year, but there was a delay and some risk associated with realising the remaining plans.

Gratitude was expressed for the report. The need to focus on the success was noted - that 96% of the Savings had been realised - the tendency was to focus too much on those that had not been realised, which may be more difficult to deliver.

During the ensuing discussion, the following observations were made by members:

·         How to choose between financial propriety and fulfilling statutory duties?  ...  view the full minutes text for item 7