Agenda item

To receive the information, consider the general risks arising from the savings slippage

DECISION:

To accept the report and note the situation and relevant risks in the context of the Savings Overview

Note: To recommend to the Cabinet that detailed challenge was required on unrealised schemes - need to ensure regular review of those schemes. 

A report was submitted by the Cabinet Member for Finance summarising the Council's savings position and asking the committee to identify the relevant situation and risks in respect of the Savings Overview before submission to the Cabinet on 7.11.23.  

The Assistant Head of Finance - Accountancy and Pensions explained that in order to close the funding deficit this year, £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.

It was added, as had been consistently reported to the Committee, that there were difficulties in realising savings in some fields (the most prominent being the Department for Adults, Health and Wellbeing and the Waste Field). It was noted that in July 2023, all savings plans were reviewed, and it was assessed which plans were now unattainable. A programme was designed to scrap £2 million worth of schemes that had significant risks to achieve. Reference was also made to the historic savings schemes for the 2015/16 financial year to 2023/24 and that while some of these schemes had been scrapped, 98%, over £33.7 million of the £34.3 million of savings, had now been realised.
 

Reference was made to new schemes in the current financial year and that 81% of 2023/24 savings had already been realised with a further 6% to be delivered in a timely manner. It was reiterated that there was a slight delay to the realisation of £700k worth of 2023/24 savings schemes, however the Departments did not foresee a problem to realise these. It was reported that the majority of this amount, which included savings of £539k from schools, was slipping as the schools worked in line with the academic year, and so realisation would slip into the next financial year. The value of savings already approved for 2024/25 onwards was discussed along with further savings and cuts schemes for 2024/25 that were already under consideration. These will be subject to a further report.

In summing up, it was reported that £39.1 million of savings have been realised which was 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 would be delays and some risks to delivering 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:

·         That there was a consistent historical pattern of overspending in the Adults, Health and Well-being Department

·         Although there was overspending in ten schemes by the Adults, Health and Well-being Department, there was no clear explanation or reasons for the overspending. Had a Project Manager been appointed? There was a need to ensure that arrangements were tightened, and lessons learned. The Cabinet was urged to question more about the situation

·         A suggestion to consider giving external attention to the plans - identify experts to take a closer look at the situation

·         That there was a duty to share information about the savings schemes with the Committee – difficult for the Committee to give a realistic view, and the Committee was open to criticism for not contesting more thoroughly. There was a need to consider how the Committee could  better fulfil their role.

·         Expressed pride that 95.6% of the savings had been realised - the officers needed to be congratulated on this

The Cabinet Member thanked the Committee for their comments and echoed the pride that a substantial sum had been saved. He noted that those Councillors who attend meetings to challenge the performance of the Departments were empowered to challenge the financial situation – this was essential.

RESOLVED

To accept the report and note the situation and relevant risks in the context of the Savings Overview

Note: To recommend to the Cabinet that detailed challenge was required on unrealised schemes - there was a need to ensure regular review of those schemes.