Agenda and minutes

Details of the Memberships of the Committees are attached.

The Committees are asked to agree a Chairman for the meeting.

With the agreement of all Overview & Scrutiny Committee Members, the Chair was taken at this special joint meeting by Councillor Sandra Binion.

The Chairman will announce details of the arrangements in case of fire or other events that might require the meeting room or building’s evacuation.

The Chairman advised all present of action to be taken in the event of emergency evacuation of the Town Hall becoming necessary.

Apologies were received from the following Members:

Children & Learning Overview and Scrutiny Committee

Margaret Cameron (Co-opted Member)

Crime & Disorder Committee:

Councillor Rebbecca Bennett (substituted by Councillor Eric Munday)

Environment Overview and Scrutiny Committee

Councillor John Mylod (substituted by Councillor Clarence Barrett)

Towns & Communities Overview & Scrutiny Committee

Councillor Paul McGeary (substituted by Councillor Keith Darvill)

Value Overview and Scrutiny Committee

Councillor Ted Eden

Members are invited to declare any interests in any of the items on the agenda at this point of the meeting. Members may still declare an interest in an item at any time prior to the consideration of the matter.

There were no disclosures of interests.

Members are asked to retain, and to bring with them to the meeting, the report to be considered by Cabinet at its meeting on 23 January. The Cabinet’s decisions will be announced at the meeting.

The Cabinet will consider any concerns etc. raised at the joint meeting before formulating its recommendations on the budget and Council Tax for 2013/14 and thus this is the Overview and Scrutiny Committees’ opportunity to scrutinise the budget proposals.

RECOMMENDATION

That the Committees, individually and collectively:

1.            Receive a presentation from the Leader of the Council and note the proposed revenue priorities relevant to the service(s)

2.            Note the financial position of the Council.

3.            Note that the report is formally consulting them on the proposed Corporate budget adjustments and that this is the opportunity to scrutinise the budget proposals.

4.            Consider the proposals and what, if any, representations they wish to make upon them.

The Leader of the Council, Councillor Michael White explained that the budget proposals had been made in the context of continuing austerity measures by central Government. The priority for Havering had been to protect front line services and reviews had therefore been undertaken of the Council’s back office functions. A joint agreement with Newham had saved £5-6 million and further savings had been achieved by the introduction of ISS software and a total of 78 restructures across the Council.

The level of Council Tax which was formerly residents’ top priority was now only the fourth priority and this showed that Council Tax levels in Havering were under control. The Council’s savings plans were currently on track and budgets were being managed sensibly. A further £1.5 million of savings would be needed but it was anticipated that these could be found without any denigration of services, providing budgets were kept under review.

It was expected that the austerity situation would now last until at least 2017 and a further Comprehensive Spending review would have an impact on Havering from 2015/16. A 1% cut was required in 2013/14 and a 2% saving would have to be achieved in 2014/15. Public sector pay would increase by an average 1%.

Changes impacting on the budgetary position included the localisation of business rates (although the Government would keep 30% of this revenue) a 10% cut in funding as a result of Council Tax localisation and funding of £1.8 million from the New Homes Bonus although the Rate Support Grant had fallen. NHS funding for social care had risen to £3.6 million although the borough’s large elderly population had to be taken into account. There was also a ring fenced amount of £8.6 million for the new public health duties transferring to the Council.

In conclusion, the Leader felt it was essential to protect front line services but this could only be done with less money by finding efficiencies. The Administration’s strong financial planning had been praised in the recent Peer Review report. It was important to continue to deliver value for money through initiatives such as Shared Services and East London Solutions. A future funding group had been established to help the Council prepare for further budgetary challenges in the future.

The Leader agreed with a Member’s suggestion that energy management was a good area for investment and favoured using the Council’s pension fund for this if it offered a better return.

Answers to questions raised by Members on specific items of the budget are shown in the appendix to the minutes.

Having received the presentation from the Leader of the Council, the Overview and Scrutiny Committees noted:

1.     The financial position of the Council.

2.    That the report was formally consulting them on the proposed Corporate budget adjustments and that this was the opportunity to scrutinise the budget proposals.