Agenda item

Receive the information, consider the general risks arising from the savings slippages

DECISION:

·       To accept the information and note the position and the relevant risks arising from slippages in the savings.

·       Support the Cabinet approval of the deletion of one savings scheme worth £146,910 relevant to 2025/26 in the field of waste in the Environment Department, using the provision set aside in the budget in order to do so.

·       Thank you to everyone involved with the report - very challenging work presented in an understandable way

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 (22-01-2025) and provides comments as required. It was explained that £42 million of savings had been realised, which was 90% of the required £46.6 million over the period and appreciation was expressed for Council staff work in realising this. It was noted, in order to close the financial deficit, that savings to the value of £5.6 million must be implemented in 2024/25, which was a combination of £3.6 million approved in February 2023, and new savings worth £2 million approved in February 2024.

Reference was made to the summary of each Department's savings attainment, based on the November 2024 review (total of £12 million) and it was announced that over £8 million (67%) of these schemes had already been realised, with 6% on track to achieve in full and on time. It was reiterated that there were obvious risks to realising the savings in some fields, with the main ones in the Adults, Health and Well-being Department and the Environment Department.

⁠It was reported, following the Chief Executive's recent review of savings schemes in the waste field by the Environment Department, it was concluded that there was a need to merge three savings schemes in the commercial waste field, remove one nappy collection scheme worth £147,000 and that alternative schemes are proposed to the value of £300k from a £400k waste scheme.  This will be recommended to the Cabinet for approval.

The Assistant Head of Finance reiterated, at the October Committee, that an application was made to draw up a table which differentiated between the historical situation and the latest situation so that it was possible to identify risks to the current position. It was noted that the application had been implemented with information about historical schemes which had been realised in one table, and another table addressing the historical savings that were yet to be realised.

Attention was drawn to new savings schemes per Department for 2025/26 onwards - noting that these schemes already under Council consideration were the subject of a further report to the Committee.

The members expressed their thanks for the report.

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

·        Welcomed that the proposal to present information about the historical savings had been actioned - the overview of the situation was clearer

·        Welcomed that 67% of efficiency savings schemes for 2024/25 had been realised

·        That the 'easiest' savings had been realised - the savings that needed to be realised in the near future were difficult and so there was a need to ensure that consideration was given to an appropriate timeframe for action and give departments an opportunity to plan better for the long-term.

·        Gratitude was expressed to everyone involved with the report - very challenging work presented in an understandable way

RESOLVED:

·        To accept the information and note the position and the relevant risks arising from slippages in the savings.

·        Support that Cabinet approves the deletion of one savings scheme worth £146,910 relevant to 2025/26 in the waste area in the Environment Department, using the provision set aside in the budget in order to do so.

·        Thank you to everyone involved with the report - very challenging work presented in an understandable way.