Agenda item

Report of Head of Strategic Finance

This report informs the Budget Panel of the report to go to Cabinet on 8^th July 2013. 

The Panel received a report of the Head of Strategic Finance and Shared Services which included the report and its appendix to Cabinet on 8 July 2013.  The report provided an update on the Council’s Medium Term Financial Strategy. 

The Head of Strategic Finance and Shared Services informed the Panel that there were a number of areas that needed to be addressed and were set out in the Cabinet report.  An updated strategy would be presented to Budget Panel in September which would enable Members to make recommendations to Cabinet. 

Outsourced Contracts

Councillor Martins referred to outsourced services and the cost incurred by the Council to manage the contracts.  He asked how it was monitored.

The Head of Strategic Finance and Shared Services explained that a client section was built into the contracts.  The client team was based in Corporate and Client Strategy Services, part of the Council’s new corporate structure.  As part of outsourcing it was also necessary to review the cost of support services and assess any reductions required.

Government Grant

The Chair commented that as set out in the report, the Government had announced a further 10% cut in government support to local government.  He felt that this could lead to some local authorities going bankrupt.  He asked about the predictions for Watford. 

The Head of Strategic Finance and Shared Services referred to the changes to the New Homes Bonus proposed by the Government.  Local authorities were also restricted in the amount they could increase Council Tax unless they arranged a referendum.

Councillor Derbyshire said that the saviour for the Council’s budget had been the New Homes Bonus.  He asked for the reason that two thirds had been placed in the revenue budget and one third into capital. 

The Head of Strategic Finance and Shared Services explained that this had been done to allow procedures to be put into place to identify permanent savings in a controlled manner.  Further information would be available in the report for the September meeting.

CCTV relocation

Following a question from Councillor Turmaine, the Head of Strategic Finance and Shared Services explained that the CCTV control room had been based at Charter Place.  Accommodation had been made available by the Police at Shady Lane and the offer had been accepted, which should result in reduced ongoing costs. 

Cost of welfare benefits

Councillor Turmaine requested further information about the impact universal credit might have on the Medium Term Financial Strategy.

The Head of Strategic Finance and Shared Services explained that aspects of the benefits system would be transferred to HM Revenues and Customs.  The proposed timetable had slipped.  Local authority staffing implications had not yet been assessed.  It had been made clear however, that if there were to be a reduction in staff they would have to be made redundant and could not be TUPE’d over.

Business Rates

Following a question from Councillor Turmaine, the Head of Strategic Finance and Shared Services briefly explained the redistribution of business rates income.  He cautioned that there were a number of outstanding appeals which, if granted, could lead to a shortfall.  Further information would be included in the report to the Panel in September.

Members thanked the Head of Strategic Finance and Shared Services for the clear summary.  The Head of Strategic Finance and Shared Services informed Members that the external auditor had viewed the report and had commented on the clear format which he considered a layperson would be able to understand. 

RESOLVED –

that Budget Panel’s comments be noted.