Agenda item

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? ⁠What would we do when the funding came to an end? 

·         Concern about the lack of resources to fulfil things, but there was acknowledgment that this was now the reality of the situation.

·         To ensure that the Committee highlighted the risks when managing appropriate use of financial resources.

·         That the Council now worked in a culture of savings.

·         Suggestion to host modelling work to ensure that it would be possible to anticipate the need for the future.

·         Concern was expressed that the Council would not be able to implement to meet the standards by now, because of the continuous demand to realise savings.

·         They were fast approaching the point where there was a need to revisit the way services were realised.

In response to the comments, the Head of Finance Department noted that it was integral to act in a way where everything had been to avoid reaching the point of having to choose between financial propriety and fulfilling statutory duties. He reiterated that there was a need to ensure value for money and make the best use of every pound available to ensure that the resources go to the right place whilst reviewing the situation continuously. He noted that the failure to do this would lead to having to make a s114 statement, and that everything needed to be done to avoid reaching this situation. In response to a comment about completing modelling work, it was highlighted that the Council was in a strong situation to act on this with the Council's Research and Information team being very innovative in this type of work.

RESOLVED:

·         To accept the report.

·         To note the progress, the position and the relevant risks in the context of the Savings Overview.