Agenda item
Strategic Performance and Corporate Revenue and Capital Budget Monitoring Q2 2011/12 (Month 6)
To consider the monitoring report of the financial position of the Council at the end of Quarter 2 compared to budget and service performance against targets.
Minutes:
Councillor Alibor Choudhury, Cabinet Member for Resources, Chris Naylor Director for Resources and Kevin Kewin, Strategy Policy and Performance Service Manager presented the report circulated at agenda item 6.2 which detailed the financial position of the Council at the end of Quarter 2 compared to budget and service performance against targets.
Councillor Choudhury reported that overall performance had been good and 13 performance indicators had exceeded targets. Three areas, however, were identified as off target. These were homelessness prevention and violent and acquisitive crime. The Council was investigating ways of addressing these and it was noted that crime management had been well resourced.
In response to Members’ questions the following information was provided:
- The Committee was informed that the Council intended to address levels of violence and acquisitive crime through a new offender management model and focus on the night-time economy. Additional resources would be given to Brick Lane and a borough-wide drinking control zone had been established. Councillor Choudhury acknowledged that more work could be done to address crime and this was being pursued through discussions with the Police.
- Concerning improving ways of letting the Council's stock, the Committee was informed that the Council could ensure that lettings were managed more efficiently. The Chair noted the work undertaken by Councillor Helal Uddin on social housing.
- The Strategy Policy and Performance Service Manager informed the Committee that the homelessness performance indicator measured homelessness prevention. It was noted also that since changes in housing benefits were announced some private landlords were more reluctant to take Council tenants; however the Council was working with households and landlords to protect and support tenancies.
- Councillor Choudhury advised that a briefing could be circulated the to the Committee.
Action: Councillor Alibor Choudhury / Kevin Kewin Strategy Policy and Performance Service Manager
- Concerning savings on domiciliary care, Councillor Archer asked for clarification whether existing contractors (who had been asked by the Council to reduce their hourly cost by two pounds per hour) had absorbed this reduction through lower staff wages. Councillor Choudhury confirmed that the cost changes would be met by the providers and would not affect staff wages.
- Kevin Kewin Strategy Policy and Performance Service Manager advised that it appeared likely that the new Affordable Rents regime would potentially discourage registered social landlords from building family sized houses.
- Concerning how the Council ensured that diversity was incorporated into recruitment, Councillor Choudhury confirmed that varied strategies and policies were used and these were kept under review. The Corporate Director for Resources advised the Committee that the fall in diversity employment performance was due to a decrease in numbers of women employed by Children Schools and Families Directorate. The Director commented that the Council should seek to develop talented employees into management positions. Councillor Saunders asked that the Council think more proactively about role-modelling for underrepresented groups.
- Concerning numbers of Council employees who also lived in the Borough, the Corporate Director agreed to circulate information after the meeting.
Action: Chris Naylor Corporate Director for Resources
- Concerning reasons why child poverty figures presented in the report were two years old, the Committee was advised that these figures were calculated nationally and data was published in arrears.
- Councillor Eaton asked for further information about the rise in the number of children subject to a child protection plan. Councillor Choudhury agreed to investigate the issue and respond to the Committee.
Action: Councillor Alibor Choudhury
- Councillor Choudhury agreed to provide figures concerning how many jobs the Council planned to achieve for the Olympics, following the meeting.
Action: Councillor Alibor Choudhury
- Concerning what strategies were in place for benefits from S106 agreements, the Committee was informed that planners worked concertedly to secure as much as possible. A written response would also be circulated after the meeting.
Action: Councillor Alibor Choudhury
The Committee then considered the budgetary aspects of the report. The Corporate Director advised the Committee that, at the six point month point, he assessed that Medium-Term Financial Strategy (MTFS). Would contain no negative areas. He was monitoring the progress of budgets and assessing whether any areas required remediation work and reported that, present figures indicated, none was required. The savings that would be made from the decant of Anchorage house were noted.
In response to Members’ questions the following information was provided:
- Concerning how support for Transition Clients with Learning Disabilities, was being delivered, the committee was advised that £800,000 was from contingencies and the budget assumed a separate drawdown of £574,000.
- The Committee was informed that the potential costs to the Council of paying the London living wage on contracts would not be known until contracts were renegotiated.
- The Interim Corporate Director Adults Social Care was assessing what growth needed to be built-in to transition funding for clients for with learning disabilities. It was noted that severely disabled children were living longer through access to better care. Costs were therefore expected to increase.
- Concerning officers’ forecast of the nil variance at year-end, the Committee was informed that the data concerned forecast budgets and these were designed show areas of budgetary pressure.
- Concerning the delayed “violence against women and girls strategy”, the Committee asked for further information about its process and progress. Members were advised that a written answer would be provided by Andy Bamber, Service Head, Community Service
Action: Andy Bamber, Service Head, Community Service
- Concerning what slippages were expected in terms of general risk provision, the Committee was informed that identified budgets were contained in a ‘holding budget’ and any funding drawn down was indicated by the performance indicator.
- To shield residents from certain banking practices, the Chair asked the Corporate Director that the Council endorse Standing Order payment method over Direct Debits. The Chair’s request was noted.
- The Committee noted the funding gap identified within Children’s Schools and Families Directorate budget and was informed that (in the previous financial year, after the removal of Direct Schools Grant and other Government funding) the Council had set aside a significant sum to meet downsizing costs and to help the Directorate to continue some services until the end of the academic year and to pump prime other services. There were now some risks around service delivery since money would now go to schools directly and they might choose not to buy Council provided services. The Chair proposed that a reserve of cash be set aside against adverse outcomes and the Corporate Director agreed to refer the proposal to the Mayor
Action: Chris Naylor, Corporate Director for Resources
- Concerning the possible impact of not voting on the budget strategy management proposal, the Committee was informed that there was no impact at present. However the Corporate Director had taken advice from ‘Sectors’ a local government investment adviser, and there were restrictions on the types and duration of investments that could be undertaken.
RESOLVED
That the report be noted.
Supporting documents:
- 2. OS - Strategic Performance and Corporate Monitoring - Q2 2011-12 Final (Post MABSARP) (2), item 6.2 PDF 160 KB
- 2a. Appendix 1 - Budget Adjustment 16-11-11, item 6.2 PDF 31 KB
- 2a.Appendix 2 - 06 GF CMBM WP, item 6.2 PDF 211 KB
- 2a. Appendix 3 - HRA - Corporate Format 16-11-11, item 6.2 PDF 30 KB
- 2a. Appendix 4 - Capital, item 6.2 PDF 66 KB
- 2a. Appendix 5 - Quarter 2 Strategic Plan Monitoring - Final, item 6.2 PDF 79 KB
- 2a. Appendix 6 - Quarter 2 Strategic Performance Indicators - Final, item 6.2 PDF 114 KB
- 2a. Appendix 7 - Transformations Savings Update.V2, item 6.2 PDF 19 KB