Issue - meetings

To consider a report of the Corporate Director for Corporate and Support Services. (To follow)

The Scrutiny Committee is invited to consider the proposals in the report.

Officer contact: Steve Houston on 474 4000 or email: steve.houston@stockport.gov.uk

The Corporate Director for Corporate and Support Services submitted a report (copies of which had been circulated) informing the Scrutiny Committee that the Executive at its meeting on 18 February 2013 had agreed the second tranche of savings proposals for 2013/14 and 2014/15 for consultation and that each scrutiny committee should have the opportunity to ask questions, review and comment upon the savings propositions which relate to their remit. In addition, scrutiny members were invited to make comments upon the overall approach being taken by the Executive to respond to the very significant financial challenge faced by the Council.

The Executive Leader and Portfolio holder for Policy, Reform & Finance (Councillor Sue Derbyshire) and the Executive Councillor for Governance and Corporate Services (Councillor Martin Candler) attended the meeting to answer member’s questions.

The Labour Group stated that they would not support a reduction in the number of Scrutiny Committees

RESOLVED – The Scrutiny Committee noted the report and referred the above comment to the Executive for consideration.

The proposals contained in this report take as their starting point the Indicative Budget for 2013/14 set out in the report of the Corporate Director for Corporate and Support Services elsewhere on the agenda for this meeting.  Within a range of potential outcomes that report estimates that there will be an on-going savings requirement of £15.463m in 2013/14, rising to £29.079m by 2014/15. The extent of the savings requirement is heavily dependent upon a number of factors which are set out in that report.

This report also relates back to the decision taken by the Executive on 7 September 2012 to make available for consultation a package of savings proposals.

The Executive will endorse the approach taken in compiling the Indicative Budget to arrive at the estimated savings requirement.  In response to the forecasts contained in that report the Executive (in conjunction with Corporate Directors) has developed revised spending plans and is now putting forward savings proposals which total £15.564m. At this stage it is anticipated that £9.894m worth of these savings can be delivered during 2013/14.  The successful implementation of the proposed measures would reduce the indicative savings target for 2013/14 to around £5.569m and would represent significant progress towards the preparation of a balanced budget for 2013/14, based on current estimates.  The Executive will continue to monitor the forecasts prepared by the Corporate Director and will produce a final set of recommendations to achieve a balanced budget by its meeting in February 2013.

The Executive is recommended to:

·           note the results of the various consultation exercises undertaken in relation to the savings proposals put forward in September and the changes that are proposed in response to the consultation;

·           agree the savings proposals for implementation as set out in the report and listed in Appendix Two;

·           agree the recommendations set out in Annex C regarding TUPE transfers between the Council and its associated bodies;

·           ask the Chief Executive and Corporate / Service Directors, in consultation with the relevant Executive Councillors, to implement the delivery of those proposals; and

·           continue with the steps necessary to agree a final balanced budget proposal for 2013/14 and an updated Medium Term Financial Plan to 2014/15 for presentation to the Council budget meeting in March 2013

Officer contact: Steve Houston, 0161 474 4000, steve.houston@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) inviting the Executive Meeting to consider proposals that sought to address some of the savings requirements necessary to achieve a balanced budget for 2013/14. The report detailed responses to consultation with staff, stakeholders and the public on the proposals following the Executive’s decision to proceed to consultation at its meeting on 7 September 2012.

The Leader of the Council (Policy, Reform & Finance) commended those involved in the consultation for its thoroughness in light of significant non-budget related consultation activity also being undertaken.

The Executive Councillors (Economic Development & Regeneration) and (Lifelong Learning & Achievement) highlighted changes to the proposals arising from the consultation.

RESOLVED – That

·                the results of the various consultation exercises undertaken in relation to the savings proposals put forward in September 2012 and the changes proposed in response to the consultation be noted;

·                the savings proposals for implementation as set out in the report and listed in Appendix Two be agreed;

·                the recommendations set out in Annex C regarding TUPE transfers between the Council and its associated bodies be agreed;

·                the Chief Executive and Corporate / Service Directors, in consultation with the relevant Executive Councillors, be requested to implement the delivery of those proposals; and

·                approval be given to continue with the steps necessary to agree a final balanced budget proposal for 2013/14 and an updated Medium Term Financial Plan to 2014/15 for presentation to the Council Budget Meeting in March 2013 continue.

To consider a report of the Service Director (Strategy & Performance).

As part of the 2013/14 Medium Term Financial Plan budget savings proposals, consultation has been undertaken on the specific savings proposals considered by the Scrutiny Committee at its meeting in October 2012.

The consultations are nearly complete and the full results will be available and submitted to the meeting of the Executive on 17 December 2012. However, headline information on the process and initial findings will be shared with the Scrutiny Committee at this meeting.

The Scrutiny Committee is invited to consider and comment on the consultation responses.

Officer contact: Donna Sager, 0161 474 3928, donna.sager@stockport.gov.uk

The Service Director (Transformation & Commissioning) submitted a report (copies of which had been circulated) summarising the results of consultation exercises carried out on those proposals contained within the Executive’s Savings Proposals report considered by the scrutiny committees in October 2012 that related to this Scrutiny Committee’s remit.

The following issues were raised/ comments made in relation to the specific proposals contained in the report:-

Free School Travel

·         Concern was expressed about the impact the changes in the criteria would have on those families living in Brinnington as children from this area had no alternative but to attend secondary schools that were out of the immediate area.

·         Concern was also expressed that the added financial pressure of families caused by the changes to the criteria may in some instances have an impact on attendance.

·         A large number of the respondents from the citizen’s panel did not have children so were less likely to be sympathetic to the potential difficulties of funding travel to school.

Blue Badges

·         The additional cost proposed was fairly insignificant in comparison to the cost of running a car.

Children’s Centre Opening Times

·         Each Children’s Centre should be encouraged to set its hours of operation to meet the needs of its users.

RESOLVED – (1) That the report be noted.

(2) That the Executive be informed that this Scrutiny Committee believes that the proposed changes to the Free School Travel criteria would have a disproportionate impact on families living in Brinnington due to there being no local secondary school and when the decision to close the secondary school in Brinnington was taken there was all-party agreement that the Council would assist parents with the costs for transport to other schools; and the walking routes to the schools attended by pupils from this area often being unsuitable for children and young people.

(3) That the Corporate Director for People be requested to provide further detail to the Scrutiny Committee on the outcome of the consultation on the ‘Making Choices, Having Control’ Disability Review when available.

To consider a report of the Corporate Director for Corporate and Support Services.

 At its meeting on 7 September 2012 the Executive agreed a set of savings proposals for consultation. This was in response to the medium term forecasts and indicative savings requirements contained in the report of the Corporate Director, Corporate and Support Services which was presented to the Executive at its meeting on 20 August 2012.

The Executive also agreed that each scrutiny committee should receive a report which includes details of the savings propositions relating to their remit. The chairs of scrutiny committees were consulted on how best to engage members on the Executive’s proposals. In line with their response this report provides scrutiny committee members with an opportunity to review and comment upon both the overall approach being taken by the Executive and the relevant specific savings measures

The Scrutiny Committee is recommended to comment upon both the overall approach being taken by the Executive and the specific savings proposals detailed in the report.

Officer contact: Steve Houston on 474 4000 or email: steve.houston@stockport.gov.uk

The Executive Leader and Portfolio holder for Policy, Reform & Finance (Councillor Sue Derbyshire) submitted a report (copies of which had been circulated) setting out the Executive’s response to the medium term financial forecasts and indicative savings requirements for 2013/14 - 2016/17.  The report also detailed the Executive’s specific savings proposals for 2013/14 that related to the Scrutiny Committee’s remit.

The Leader of the Council referred to a recent update provided to members of all scrutiny committees summarising changes to the financial assumptions of the Medium Term Financial Plan in light of changes announced to the grant regime which resulted in the Council needing to make additional savings. The Leader of the Council emphasised that there remained a number of assumptions within the Plan that could not yet be finalised.

The Executive Councillor (Governance and Corporate Services) also attended the meeting and summarised the individual savings proposals contained in the report relating to his Portfolio.

The following comments were made/ issued raised:-

·         The Committee supported a move to a more corporate and collaborative approach to procurement both within the Council and through a new Strategic Procurement Unit across AGMA, providing the opportunity to acquire and pool a greater degree of procurement expertise and intelligence. Comments were also made regarding the need to eliminate any off contract spending and to and ensure that ‘price ringing’ does not occur. Members are keen to see that the Council is achieving best value through its procurement activities.

·         It was confirmed that there are no services which are excluded from consideration within the BITE Programme, although the Housing Revenue Account and the Dedicated School Grant were outside this process.

·         The Committee noted that in relation to the savings in the Independence and Personalisation thematic cluster within the BITE programme it was expected that the majority of the savings would be in 2014/15.

·         The Committee noted that although any Council Tax increase would need to be applied equally across the Council Tax Bands, the proposed Council Tax Scheme currently being consulted upon offered some protection for properties within bands A and B.

RESOLVED – That the report be noted and the above comments be referred to the Scrutiny Co-ordination Committee and Executive for consideration.

To consider a report of the Corporate Director for Corporate and Support Services.

At its meeting on 7 September 2012 the Executive agreed a set of savings proposals for consultation. This was in response to the medium term forecasts and indicative savings requirements contained in the report of the Corporate Director, Corporate and Support Services which was presented to the Executive at its meeting on 20 August 2012.

The Executive also agreed that each scrutiny committee should receive a report which includes details of the savings propositions relating to their remit. This report provides scrutiny committee members with an opportunity to review and comment upon both the overall approach being taken by the Executive and the relevant specific savings measures detailed in the report.

The Scrutiny Committee is recommended to comment upon both the overall approach being taken by the Executive and the specific savings proposals detailed in the report.

Officer contact: Steve Houston on 474 4000 or email: steve.houston@stockport.gov.uk

A representative of the Corporate Director, Corporate and Support Services submitted a report (copies of which had been circulated) setting out the Executive’s response to the medium term financial forecasts and indicative savings requirements for 2013/14 – 2016/17. The report also detailed the Executive’s specific savings proposals for 2013/14 that related to the Scrutiny Committee’s remit.

The Executive Councillors (Public Realm), (Economic Development & Regeneration) and (Sustainable Future) attended the meeting and answered questions relating to the individual savings proposals contained in the report relating to their Portfolios.

In addition, the Scrutiny Committee had received a recent update summarising changes to the financial assumptions of the Medium Term Financial Plan in light of changes announced to the grant regime which resulted in the Council needing to make additional savings. There remained a number of assumptions within the Plan that could not yet be finalised.

In response to a Member’s question, the Leader of the Council and Executive Councillor (Policy, Reform & Finance) advised that at this stage the figures still assumed a council tax increase of 2.5% which would generate around £2.9m. Recent announcements suggested that the government would offer a grant equivalent to a 1% increase to authorities that agree to ‘freeze’ their council tax. Furthermore, it appeared that an ‘excessiveness’ threshold of 2% would be set, meaning that councils that wished to set a council tax increase above that would have to hold a referendum on their proposed increase. However, the ‘excessiveness calculation’ excluded the impact of levy increases. This meant that the Council could raise the council tax by 2.5% without the need for a referendum. Nevertheless, there was still a great deal of uncertainty regarding the forthcoming financial settlement and the actual impact of the new rates retention/RSG arrangements.

The following additional comments were made/issues raised:-

•      More detail was required on the savings proposals and the effect on services and customers.

·         An update on the feedback from staff affected by the savings proposals was provided.

•      What the long term future for Stockport Art Gallery was given the proposal to cease the temporary and community exhibitions programme, and where this programme would be displayed in the future.

RESOLVED –  (1)That the report be noted.

(2) That the comments of the Scrutiny Committee be referred to the Scrutiny Co-ordination Committee and the Executive for consideration in conjunction with the comments made by the other scrutiny committees on those proposals that fell within their remit.

To consider a report of the Corporate Director for Corporate and Support Services.

At its meeting on 7 September 2012 the Executive agreed a set of savings proposals for consultation. This was in response to the medium term forecasts and indicative savings requirements contained in the report of the Corporate Director, Corporate and Support Services which was presented to the Executive at its meeting on 20 August 2012.

The Executive also agreed that each scrutiny committee should receive a report which includes details of the savings propositions relating to their remit. The chairs of scrutiny committees were consulted on how best to engage members on the Executive’s proposals. In line with their response this report provides scrutiny committee members with an opportunity to review and comment upon both the overall approach being taken by the Executive and the relevant specific savings measures.

The Scrutiny Committee is recommended to comment upon both the overall approach being taken by the Executive and the specific savings proposals detailed in the report.

Officer Contact: Steve Houston on 474 4000 or email: steve.houston@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) setting out the Executive’s response to the medium term financial forecasts and indicative savings requirements for 2013/14-2016/17. The report also detailed the Executive’s specific savings proposals for 2013/14 that related to the Scrutiny Committee’s remit.

The Leader of the Council referred to a recent update provided to members of all scrutiny committees summarising changes to the financial assumptions of the Medium Term Financial Plan in light of changes announced to the grant regime which resulted in the Council needing to make additional savings. The Leader of the Council emphasised that there remained a number of assumptions within the Plan that could not yet be finalised.

The Corporate Director for Place and the Executive Councillors (Lifelong Learning and Achievement) and (Children and Young People) also attended the meeting and answered questions.

The following comments were made/issues raised:-

·         Concern was expressed at the proposed £0.5m reduction in the services to young people budget particularly in view of the recent restructure of that service.

·         Clarification was sought in relation to the proposed savings associated with home to school transport.

·         Councillors sought assurance that the deletion of vacant posts would not adversely affect the early years’ service.

·         Councillors welcomed the work undertaken in respect to procurement for external placement of children in care homes and the associated savings.

RESOLVED – That the comments of this Scrutiny Committee on the Medium Term Financial Plan Executive Savings Proposals be referred to the Scrutiny Co-ordination Committee for consideration in conjunction with the comments of the other scrutiny committees.

To consider a report of the Corporate Director for Corporate and Support Services

At its meeting on 7 September 2012 the Executive agreed a set of savings proposals for consultation. This was in response to the medium term forecasts and indicative savings requirements contained in the report of the Corporate Director for Corporate and Support Services which was considered by the Executive at its meeting on 20 August 2012.

The Executive have agreed that each scrutiny committee should receive a report which includes details of the savings propositions relating to their remit. This report provides scrutiny committee members with an opportunity to review and comment upon both the overall approach being taken by the Executive and the relevant specific savings measures listed below:-

Portfolio:  Lifelong Learning and Achievement.

·                Services for young people. Prevention Cluster

·                SEN and free school bus passes Intervention Cluster

Portfolio:  Children & Young People

·                Early help and prevention. Prevention Cluster 

Portfolio: Adult Care Services

·                Adults Residential and Home Care Price Freeze: Procurement and Third Party Cluster

·                Adult Social Care Income Yield, Independence and Personalisation Cluster ,

·                Disability Review (Making Choices, Having Control ) Independence and Personalisation Cluster

·                Reablement,  Independence and Personalisation Cluster

·                Quality Management  Independence and Personalisation Cluster

The Scrutiny Committee is recommended to comment upon both the overall approach being taken by the Executive and the specific savings proposals detailed in the report for submission to the Scrutiny Co-ordination Committee which will compile a composite report for submission to the Executive.

Officer contact: Steve Houston, 0161 474 4000, steve.houston@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) setting out the Executive’s response to the medium term financial forecasts and indicative savings requirements for 2013/14-2016/17. The report also detailed the Executive’s specific savings proposals for 2013/14 that related to the Scrutiny Committee’s remit.

The Leader of the Council referred to a recent update provided to members of all scrutiny committees summarising changes to the financial assumptions of the Medium Term Financial Plan in light of changes announced to the grant regime which resulted in the Council needing to make additional savings. The Leader of the Council emphasised that there remained a number of assumptions within the Plan that could not yet be finalised.

The Service Director (Transformation & Commissioning), the Head of Financial Management and the Strategic Accountant (Adults & Communities) summarised the individual savings proposals contained in the report.

The Executive Councillor (Health & Wellbeing) was also in attendance to respond to questions.

The Chair reminded the Scrutiny Committee that the proposals contained in the report would be considered by the Adults & Communities and Children & Young People Scrutiny Committees that would consider the wider impactions of the proposals on service delivery and that the comments of this Committee should focus on the possible impact on health.

The following issues were raised/ comments made on the specific proposals contained in the report:

·         The risk of providers withdrawing their service/ provision following a price freeze for residential and home care provision was highlighted. It was acknowledged that this was a risk, although experience in other sectors was that in the event of providers withdrawing others would take their place. It had also been stated that in proposing the freeze, the Executive had been satisfied that the rate was sufficient to provide a good standard of care. The collaboration with the Care Quality Commission to maintain standards was welcomed.

·         The rationale for reducing management capacity in ISSK was queried in view of the need to expand reablement services (which councillors welcomed), and in particular given the need to manage sickness absence. It was suggested this may impact on the ability to deliver savings in the longer term; could lead to higher rates of readmission to hospital which would in turn impact on the prognosis of patients and increase costs in the longer term. In response it was stated that appropriate management capacity was needed, not simply capacity, and that changes in the management structure were designed to ensure that it was able to deliver the ISSK recovery plan.

·         Further clarification was sought on the profile of current and future savings relating to reablement.  In response it was acknowledged that the current target for 2012/13 was unlikely to be achieved and therefore no further targets had been set for 2013/14.  It was hoped that the agreed action plan and delivery of greater capacity / value for money of the service would allow for the current targets to be met in 2013/14 with additional savings to be made from 2014/15.

In relation to the overall approach to savings, the Chair emphasised the value of prevention, particularly through Public Health work, in terms of outcomes and longer term savings and stressed the need to protect this activity in spite of pressures on funding.

RESOLVED – That the comments of this Scrutiny Committee on the Medium Term Financial Plan Executive Savings Proposals be referred to the Scrutiny Co-ordination Committee for consideration in conjunction with the comments of the other scrutiny committees.

To consider a report of the Corporate Director for Corporate and Support Services.

At its meeting on 7 September 2012 the Executive agreed a set of savings proposals for consultation. This was in response to the medium term forecasts and indicative savings requirements contained in the report of the Corporate Director, Corporate and Support Services which was presented to the Executive at its meeting on 20 August 2012.

The Executive also agreed that each scrutiny committee should receive a report which includes details of the savings propositions relating to their remit. The chairs of scrutiny committees were consulted on how best to engage members on the Executive’s proposals. In line with their response this report provides scrutiny committee members with an opportunity to review and comment upon both the overall approach being taken by the Executive and the relevant specific savings measures

The Scrutiny Committee is recommended to comment upon both the overall approach being taken by the Executive and the specific savings proposals detailed in the report.

Officer contact: Steve Houston on 474 4000 or email: steve.houston@stockport.gov.uk

The Leader of the Council and Executive Portfolio Holder for Policy, Reform & Finance (Councillor Sue Derbyshire) submitted a report (copies of which had been circulated) setting out the Executive’s response to the medium term financial forecasts and indicative savings requirements for 2013/14-2016/17.  The report also detailed the Executive’s specific savings proposals for 2013/14 that related to the Scrutiny Committee’s remit.

The Leader of the Council referred to a recent update provided to members of all scrutiny committees summarising changes to the financial assumptions of the Medium Term Financial Plan in light of changes announced to the grant regime which resulted in the Council needing to make additional savings. The Leader of the Council emphasised that there remained a number of assumptions within the Plan that could not yet be finalised.

The Executive Councillors  for Adult Care Services (Councillor Daniel Hawthorne) and Supporting Communities (Councillor Mark Weldon) also attended the meeting and summarised the individual savings proposals in respect of their portfolios as contained in the report.

The following comments were made/ issued raised:-

·         Concern was expressed that the safeguarding of vulnerable service users should remain a priority.

·         The proposed consolidation of the Quality Management function may result in less oversight of care providers and a resultant increase in risk to service users.

·         There was a potential overall cost benefit in the proposals to open up the Council’s procurement initiatives to external providers.

·         The potential for ‘top-up’ fees to be introduced by service providers as a result of the proposed home care price freeze was discussed.

·         Concern was expressed that a home care price freeze would result in job losses in residential homes.

·         The increase in the threshold for charging for Disabled Parking Permits would allow the council to levy a charge of £10 resulting in an income yield of approximately £50,000 per annum.  Members discussed the potential impact that this charge might have on claimants of the Disability Living Allowance.

·         The proposed £1 million savings identified under the heading of ‘Disability Review’ did not specify how these savings would be achieved.

·         The increased use of personalised budgets by service users to increase social interaction was welcomed.

·         The withdrawal of some Educational Psychology provision was commented upon, however in response it was stated that this would have a minimal impact due to an increase in training amongst staff and spot purchasing for high need offenders.

·         There was the potential to realise significant savings through the consolidation of the disparate CCTV provision and monitoring arrangements, although members expressed concern about the potential loss of CCTV provision in certain areas of the borough as a result of these proposals.

RESOLVED – (1) That the report be noted.

(2) That the comments of the Scrutiny Committee be referred to the Scrutiny Co-ordination Committee and the Executive for consideration in conjunction with the comments made by the other scrutiny committees on those proposals that fell within their remit.

To consider a report of the Leader of the Council (Policy, Reform & Finance)

The report contains proposals that take as their starting point the forecasts and indicative spending plans contained in the report of the Corporate Director, Corporate and Support Services (‘Medium Term Financial Plan – Financial Landscape and Forecasts 2013/14 to 2016/17) which was presented to the Executive at its meeting on 20 August 2012.

That report included financial forecasts for the next four years, including sensitivity analyses, and identified illustrative savings requirements based on a number of factors and assumptions. The forecasts suggest that savings of around £11.8m will be required for 2013/14, building up to just under £43m by 2016/17.

In response to the forecasts contained in that report the Executive (in conjunction with the Wider Leadership Team) is now developing revised spending plans and has drawn up savings proposals for the next two years for consultation which total £15.614m, the outlines of which are contained in the report. At this stage it is anticipated that £9.944m worth of these savings can be delivered during 2013/14. The successful implementation of the proposed measures would reduce the indicative savings target for 2013/14 to around £1.883m and would represent very significant progress towards the preparation of a balanced budget for 2013/14. The Executive will continue to develop the current proposals during the consultation period and will identify further proposals over the next few months. These will lead to a set of recommendations to achieve a balanced budget for 2013/14 and to contribute to the remaining savings requirement for 2014/15 by the Executive meeting in February 2013.

The Executive is recommended to:

·         agree the savings proposals for consultation as set out in the report and listed in Appendix Two;

·         ask the Chief Executive and Corporate / Service Directors, in consultation with the relevant executive councillors, to undertake the appropriate consultation exercises and to develop implementation plans, including impact and risk assessments, to facilitate the delivery of the proposals set out in this report;

·         agree that the proposals be re-submitted for the Executive’s approval at its meeting in December, together with the outcomes of the consultation exercises

·         continue with the steps necessary to agree a final balanced budget proposal for 2013/14 and an updated Medium Term Financial Plan to 2014/15 for presentation to the Council budget meeting in March  2013; and

·           report to all scrutiny committees in the next cycle outlining the savings proposals relating to the specific scrutiny committee’s remit

Officer contact: Steve Houston, 0161 474 4000, steve.houston@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) inviting the Executive Meeting to consider proposals to achieve the first tranche of savings necessary to ensure balanced budgets for the next two years. The report was based on the forecasts and indicative spending plans contained in the report ‘Medium Term Financial Plan – Financial Landscape and Forecasts 2013/14 to 2016/17’ considered at the meeting on 20 August 2012.

Executive councillors summarised the proposals as they related to their portfolios.

RESOLVED – That

·         the savings proposals as set out in the report and listed in appendix 2 be agreed for consultation;

·         the Chief Executive, Corporate Directors and Service Directors, in consultation with the relevant Executive Councillors, be asked to undertake the appropriate consultation exercises and to develop implementation plans, including impact and risk assessments, to facilitate the delivery of the proposals set out in the report;

·         that the proposals be re-submitted for approval by the Executive at its meeting on 17 December 2012, together with the outcomes of the consultation exercises;

·         it be agreed to continue with the steps necessary to agree a final and balanced budget proposal for 2013/14 and an updated Medium Term Financial Plan to 2014/15 for presentation to the Council Budget Meeting on March 2013; and

·         a report be made to all scrutiny committee in October 2012 outlining the savings proposals relating to the specific committee’s remit.