Agenda item

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report

It was reported that over the course of the last 15 months, the Council had agreed a package of savings to mitigate the impact of very significant cuts in central government funding to local authorities.

The savings, totalling £19 million in the first tranche, with a further £16million in the second tranche, had been made up of a range of measures designed to reduce back-office costs, cut bureaucracy and focus resources where they would have the most impact – while remaining fair to those local residents who most relied on the Council for their day-to-day support.

Subsequent to the approval of these savings measures, the Government had issued a series of consultation papers on a variety of issues.  These would all impact to a greater or lesser extent on the Council’s financial strategy.  Accepting that the detailed proposals could differ when finally published, it was considered prudent to take stock of what effect these measures might have.  The impact on the financial strategy could therefore be taken into account.

It was noted that whilst an assessment had been made of how the proposals could impact on the Council, this was only a best assessment.  The Resource Review would likely have a major impact, but the detailed effect was unlikely to be known until the Autumn or Winter of 2012, when the final details would be announced.  It was therefore important that the Council was mindful of the potential impact in developing its budget, but was also able to respond as and when the detailed proposals were finally issued.

The issues covered in the report before members were:

• Resource Review
• Localisation of Council Tax Benefits
• Housing Self-Financing
• Pensions
• Academies.

The report also set out the position in the current financial year, as this had to be taken into account when developing the detailed budget for 2012/13.

One of the elements of the Council’s approach to delivering efficiencies was collaboration with other boroughs through East London Solutions (ELS).  The report advised Cabinet on how the East London sub region was moving forward with shared services.

Reasons for the decision:

It was essential that the Council’s financial strategy took due account of Government plans, and that the Council respond to proposals where these were likely to have had an impact on the Council’s financial position.  The Government was consulting on a number of areas that impact on this, and it was therefore important that the Council respond to this consultation.

Other options considered:

The option of not responding had been discounted as not being in the interests of either the Council or its community.  The Council must ensure its views were made and heard as the Government sought to reshape the local government financial system.

Cabinet AGREED:

1.         To note the Government’s consultation process for the issues listed above, and the assessment of the potential impact on the Council.

2.         To endorse the Council’s responses to each of the consultation papers, as set out in Appendices B, D and F.

3.                  To note the position in the current financial year, as set out in Section 7 of the report.

4.                  To note the Government’s recent announcement on further funding to enable a freeze of Council Tax to be maintained.

5.                  To note the current position with East London Solutions (ELS).

6.                  To confirm that the Council should be a party to the new ELS Memorandum of Understanding.

7.         To note that further reports would be submitted to Cabinet once further details were available and/or as decisions were announced by the Government.