Agenda item
2010/11 In Year Budget Savings (CAB 015/101)
Decision:
Motion from Councillor D. Edgar, Lead Member Resources Tabled.
Resolved
1. That the list of savings brought forward by officers [summarised in paragraph 7.2 of the report (CAB 015/101) and detailed at Appendix A to the report] be noted;
2. That Cabinet agreement, at its meeting held on 9 June 2010, that the priority in responding to the Government’s spending cuts should be to focus on protecting the delivery of frontline services, and in particular the priority of achieving a safe and secure community for all residents of Tower Hamlets, be noted;
3. That in this context, the following savings proposals totalling £7.63 million be agreed:
1.1 |
2009/10 Partnership underspend carried into 2010/11 |
1.2 |
2010/11 Partnership staff savings |
1.3 |
2010/11 Partnership supplies and services savings |
1.4 |
2010/11 Partnership potential underspend |
1.5 |
Working Neighbourhoods Fund Evaluation – scale down |
1.7 |
Deletion of the vacant Assistant Chief Executive post |
2.3 |
Underspend due to organisations failing to match grant |
2.4 |
Working Neighbourhoods Fund – Making Work Pay/Homelessness – project Contract ended due to poor performance |
2.5 |
Unspent element of Council Tax rebate |
4.1 |
AHWB Directorate – Care Funding Calculator use to reduce costs while improving outcomes for service users (£400,000); Reablement programme – intensive support following eg leaving hospital resulting in reduced long-term costs (£300,000); Closing voids in homeless hostel (£200,000); Electronic homecare monitoring (£160,000); Use of single agency for home care agency staff (£400,000); Reduced use of agency staff (£250,000); Reduced residential placements (£100,000) |
4.2 |
CSF Directorate – reduce building budgets for central maintenance (£50,000), reduce services’ communications budget by better planning and control, realise early the cross departmental R2P savings. |
4.3 |
Resources Directorate – admin restructuring. |
4.4 |
CLC Directorate – Health & Safety review service integration |
5.1 |
Improved performance management |
5.2 |
Vacancy management |
5.3 |
Sickness management/allowances etc |
4. That the following proposal saving £490,000 be agreed, subject to the agreement of the Schools Forum:
3.1 |
Transferring funding for some school related Area Based Grant activities to Direct Schools Grant funding |
5. That the following activities be continued in 2010/11 and therefore making the following savings, totalling £2.212 million, not be agreed:
1.6 |
Implementation of 3rd sector strategy |
2.1 |
Unallocated Working Neighbourhoods Fund for Connexions Service |
2.2 |
Unallocated budgets from Cohesion Fund |
2.6 |
Positive Activities for Young People – uncommitted amount |
2.7 |
Uncommitted Area Based Grant payments to schemes |
2.8 |
Youth Opportunities Fund – uncommitted amount |
3.2 |
Make Professional Development Centre self-financing |
6.1 |
Review third party expenditure on management development programme |
6. That the decision of the Government to cut funding for free swimming from 31July 2010, be noted. Also that funding the continuation of free swimming in the borough until 31 October 2010, at a cost of £42,000, largely funded by the additional savings set out below, be agreed (subject to resolution 7 below):
· Reducing Special Responsibility Allowances by 5% with effect from 1 August 2010 thereby saving £13,000.
· Substantially reducing catering at meetings thereby saving £25,000; and
7. That noting the advisement of the Assistant Chief Executive - Legal Services, that adoption of an allowances scheme for Councillors and agreement of any subsequent changes to this, was a matter reserved to the full Council, it be agreed that full Council be recommended to approve the reduction of all Special Responsibility Allowances payable under the Members’ Allowances Scheme by 5% with effect from 1 August 2010.
Action by:
CORPORATE DIRECTOR RESOURCES (C. NAYLOR)
Service Head Corporate Finance, Resources (A. Finch)
ASSISTANT CHIEF EXECUTIVE – LEGAL SERVICES (I. FREEMAN) [Resolution 7]
Executive Team Leader, Democratic Services, Chief Executive’s (A. Taylor)
Minutes:
The Chair informed members of the Cabinet that Councillor Edgar, Lead Member: Resources, had Tabled a Motion in relation to the recommendations set out in the report, a copy of which would be interleaved with the minutes.
Mr Naylor, Corporate Director Resources, at the request of the Chair, in introducing the report summarised the key points contained therein, advising that:
· The Cabinet had considered a report at their meeting in June 2010 that invited them to make decisions in July in respect of closing the in year budget gap, that had arisen as a result of the Chancellor of the Exchequer’s announcement of £6.2 billion of spending cuts, the local government share being £1.160 billion.
· The precise detail of the impact on Tower Hamlets had been unknown in June, however Officers had been requested to bring forward proposals in July to achieve £10 million of savings. It was now clear that in 2010/11 Tower Hamlets would receive £4.125 million less in grants than budgeted for and through a process of osmosis it was apparent that a further £5 million of grants received in previous years would not now be allocated. The report presented a range of savings options totalling £10.3 million including £8.1 million of ongoing savings.
· A further report in the suite of reports would be submitted for Cabinet consideration in August in relation to a best estimate of the impact of the Chancellor of the Exchequer’s announcement for savings in future years.
· Cabinet were recommended to agree a balanced budget to set the Authority on course for the journey to 2011/12 and beyond.
Councillor Edgar, Lead Member Resources, in Moving the tabled motion commented that: -
· The announcement ,made earlier in the proceedings by the Lead Member Children’s Services, that the Government had confirmed that Building Schools for the Future resources allocated to schools in the borough would be unaffected by recent announcements about cuts in the programme’s funding, was welcome news. This was a reflection of how the Council had grasped the opportunity, and worked hard and fast to move the proposals forward and secure the funding and achievement of the objectives, and the Member/ Officer team were to be commended for this.
· The Council should not be introspective in its approach but reflect on the impact of the spending cuts on other agencies/ partners who provided services to the residents of the borough, such as the National Health Service, and take account of these agencies when making the required spending cuts.
· It was important to take account of equality objectives within the budget decision making. The Council needed to ensure it understood the impact of spending cuts on different elements of the community and have thought through its approach in this context.
· The motion he had tabled responded to Officer proposals for savings and also to the decision of the Cabinet, in June, to focus on protecting the delivery of front line services and the Administration’s priority of achieving a safe and secure community for all residents of the borough. The savings proposals brought forward reflected the broad policy approach of the Administration. It was proposed that a number of savings put forward by Officers be taken, one of which was subject to agreement by the Schools Forum, and others not taken.
· There were a number of proposals regarding agency staff: reducing the number used by the Council and also the expenditure on agencies providing them.
· Some proposals involved providing a better service at lower cost for example the Re-ablement Programme: which included the provision of intensive support for those leaving hospital enabling people to stay in their home and ensuring it was less likely they re-entered hospital, thereby reducing take up of other expensive care options and resulting in reduced long term costs.
· Some proposed savings reflected a loss of funding in 2010/11. However in reducing costs good work was being done on finding ways to work more efficiently, the positive outcome being to enable the protection of some initiatives in 2010/11. For example it was proposed not to claw back resources from the Youth Opportunities Fund but to continue to allocate resources in the current financial year. Members had also recognised the advocacy of young people for a number of pieces of good work within the “positive activities for young people” and it was proposed that these activities continue to be funded in the current financial year.
· The Government had announced that it was to cut funding for free swimming for those under 16 and over 60 years old from 31 July 2010. Free swimming had been a very popular initiative locally with Tower Hamlets having the highest uptake in East London. The benefits to health of the initiative were clear and it also provided a positive activity for young people during the coming summer months. The motion therefore proposed that the free swimming initiative continue to be supported in Tower Hamlets until 31 October 2010, and that this be funded by a reduction of 5% in the Special Responsibility Allowances (SRAs) for Members with effect from 1 August 2010 and a reduction in catering at the Authority’s meetings.
· The reduction in SRAs also demonstrated the recognition on the part of councillors that they must take decisions close to home if they were to remain connected to the experience of the community at this time; and they would continue to examine such options.
· He commended the motion’s proposals to the Cabinet, emphasising that the savings were those that would have least impact on front line services, and some important activities would continue to receive funding this financial year. These savings were best placed at this juncture, but it should be noted that the Coalition Government had announced cuts of the order of 25% to 40% for the four years from 2011/12.
A discussion followed, during which the proposals in the motion were endorsed, and which focused on the following points:-
· The proposal to continue the funding of free swimming for those under 16 and over 60 years old until 31 October 2010 was welcomed. Clarification/ assurance was sought as to the position after 31 October. Commented that it was extraordinary that the Government was targeting Children’s sport for cuts, and this was of particular concern in Tower Hamlets where there was a programme for child fitness aimed at tackling acknowledged child obesity levels.
· The Lead Member Resources and the Corporate Director Resources were commended for identifying £8 million of savings in a matter of weeks, given the duration of the last Budget process required to arrive at £5 million of efficiency savings for 2010/11.
· The delivery of protected and improved frontline services for vulnerable people in the community, by Adults Health and Wellbeing, with ongoing savings of £1.8 million was commended.
· The Council’s programme to identify efficiency savings, which had yielded £5 million of savings every year for the past 5 years, had placed it in a strong position to approach this savings process. However resources which would otherwise be available for re-investment in service delivery were regrettably having to be taken as a saving.
· Whilst there were differing views between the Labour, Conservative and Liberal Democrat parties as to the scale of spending cuts necessary it was essential to continue a dialogue on the approach to these. The disparities in the scale of cuts in London (Hackney and Newham compared with Kensington & Chelsea and Richmond) were considered unfair, as was the disproportionate impact on the poor and vulnerable in the community for example cuts in free swimming and child trust funds. The support of Opposition groups to lobbying ministers and the Mayor of London in the interests of protecting local people against the impact of huge spending cuts would be welcomed by the Administration.
· With a rapidly ageing population and a Government targeting cuts at the poorest in the community, if this process continued life would become extremely difficult for these vulnerable people.
· Concern was expressed at the prospect of cuts in the Housing Planning Delivery Grant from which Tower Hamlets had received approximately £1 million for the previous 5 years, and which had been used to fund new social housing in the borough. This had previously been thought to be an agenda with all party support but it was to be cut without replacement.
· It was important to note that savings had been identified to meet the in year budget gap, but the savings could not be achieved without a detrimental impact on the activities undertaken by the Council and the resources available for this. The Lead Member Resources and colleagues were working to minimise the impact of the spending cuts and the proposal not to take savings relating to Connexions and the Youth Opportunities Fund was welcomed.
· Consideration that it was right that Members should share the burden of minimising the impact of spending cuts on service users in the borough, and the proposal to reduce the councillor SRAs as a means to fund service delivery, that would otherwise be cut, was endorsed. It was noted that this had been proposed voluntarily by the Majority Group with little impact on the Opposition Groups. Noted also that some Conservative-led authorities had proposed increases to their SRAs whilst at the same time implementing cuts to services.
· With regard to the proposed saving of the unspent element of the Council Tax rebate budget, it was noted that £450,000 of the £650,000 had been spent equating approximately to a £100 rebate for 4,000 pensioners. Although the saving in 2010/11 was supported, the Lead Member Housing Heritage and Planning considered that once a balance budget had been set this worthwhile initiative, which could be ongoing, merited re-examination. The Lead Member Resources responded that it would be one of many matters discussed later in arriving at a budget for future years.
· Consideration that a clear Communications Strategy was required to inform residents what savings were being made, and why this was the case.
· The release of agency staff was welcomed. However clarification/ assurance was sought and given with regard to the saving brought forward, but not proposed for agreement, on reduction of third party spend on the Council’s Management Development Programme that, were the saving to be considered in future, this would not have a detrimental impact on the Council’s policy objective of achieving a workforce that reflects the Community, particularly in the context of vacant posts resulting from the release of agency staff.
· Councillor Golds, Leader of the Conservative Group, speaking with the consent of the Cabinet, commented that post election spending cuts had been inevitable whatever the political composition of the Government. He broadly endorsed the comments of the Lead Member Resources, although not privy to all the associated detail. He believed that anybody of goodwill had a story to tell and it would be listened to, particularly in the context of the localism now favoured. The free swimming in Tower Hamlets was an example, and his party would support this, however it was a small amount involved. The Council must examine what it did and the wider picture. With regard to the Council Tax rebate, he suggested that this should be limited to the lower bands ie those people most in need.
· The Assistant Chief Executive - Legal Services, advised that adoption of an allowances scheme for Councillors and agreement of any subsequent changes to this, was a matter reserved to the full Council, and therefore could only be recommended to it by Cabinet.
The Chair formally Secondedthe motion as tabled, commenting that:
· Labour councillors believed in leading by example and were demonstrating this with the proposal to reduce their SRAs.
· The Council had been working to improve service delivery and provide more for less year on year, and would continue to work to this end.
· The Labour Administration would prioritise front line services in the process of fiscal tightening ahead.
· The support of Opposition Groups and in particular the commitment from Councillor Golds, Leader of the Conservative Group, was welcome in lobbying Government to fund services for local people that everyone believed in.
· He had noted the aspiration of provision for those in need but not universal.
and it was:-
Resolved
1. That the list of savings brought forward by officers [summarised in paragraph 7.2 of the report (CAB 015/101) and detailed at Appendix A to the report] be noted;
2. That Cabinet agreement, at its meeting held on 9 June 2010, that the priority in responding to the Government’s spending cuts should be to focus on protecting the delivery of frontline services, and in particular the priority of achieving a safe and secure community for all residents of Tower Hamlets, be noted;
3. That in this context, the following savings proposals totalling £7.63 million be agreed:
1.1 |
2009/10 Partnership underspend carried into 2010/11 |
1.2 |
2010/11 Partnership staff savings |
1.3 |
2010/11 Partnership supplies and services savings |
1.4 |
2010/11 Partnership potential underspend |
1.5 |
Working Neighbourhoods Fund Evaluation – scale down |
1.7 |
Deletion of the vacant Assistant Chief Executive post |
2.3 |
Underspend due to organisations failing to match grant |
2.4 |
Working Neighbourhoods Fund – Making Work Pay/Homelessness – project Contract ended due to poor performance |
2.5 |
Unspent element of Council Tax rebate |
4.1 |
AHWB Directorate – Care Funding Calculator use to reduce costs while improving outcomes for service users (£400,000); Reablement programme – intensive support following eg leaving hospital resulting in reduced long-term costs (£300,000); Closing voids in homeless hostel (£200,000); Electronic homecare monitoring (£160,000); Use of single agency for home care agency staff (£400,000); Reduced use of agency staff (£250,000); Reduced residential placements (£100,000) |
4.2 |
CSF Directorate – reduce building budgets for central maintenance (£50,000), reduce services’ communications budget by better planning and control, realise early the cross departmental R2P savings. |
4.3 |
Resources Directorate – admin restructuring. |
4.4 |
CLC Directorate – Health & Safety review service integration |
5.1 |
Improved performance management |
5.2 |
Vacancy management |
5.3 |
Sickness management/allowances etc |
4. That the following proposal saving £490,000 be agreed, subject to the agreement of the Schools Forum:
3.1 |
Transferring funding for some school related Area Based Grant activities to Direct Schools Grant funding |
5. That the following activities be continued in 2010/11 and therefore making the following savings, totalling £2.212 million, not be agreed:
1.6 |
Implementation of 3rd sector strategy |
2.1 |
Unallocated Working Neighbourhoods Fund for Connexions Service |
2.2 |
Unallocated budgets from Cohesion Fund |
2.6 |
Positive Activities for Young People – uncommitted amount |
2.7 |
Uncommitted Area Based Grant payments to schemes |
2.8 |
Youth Opportunities Fund – uncommitted amount |
3.2 |
Make Professional Development Centre self-financing |
6.1 |
Review third party expenditure on management development programme |
6. That the decision of the Government to cut funding for free swimming from 31July 2010, be noted. Also that funding the continuation of free swimming in the borough until 31 October 2010, at a cost of £42,000, largely funded by the additional savings set out below, be agreed (subject to resolution 7 below):
· Reducing Special Responsibility Allowances by 5% with effect from 1 August 2010 thereby saving £13,000.
· Substantially reducing catering at meetings thereby saving £25,000; and
7. That noting the advisement of the Assistant Chief Executive - Legal Services, that adoption of an allowances scheme for Councillors and agreement of any subsequent changes to this, was a matter reserved to the full Council, it be agreed that full Council be recommended to approve the reduction of all Special Responsibility Allowances payable under the Members’ Allowances Scheme by 5% with effect from 1 August 2010.
Supporting documents: