Issue - meetings

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

The Executive Councillor (Supporting Communities) submitted a report (copies of which had been circulated) setting out the background to the Medium Term Financial Plan that had informed the recent decision on the 2013/14 budget. The report also detailed the proposed savings that fell within the remit of the Health Scrutiny Committee, namely Public Health transition.

The Director of Public Health emphasised that the proposals contained in the report had been developed to improve health outcomes for Stockport residents.

RESOLVED – (1) That the report be noted.

(2) That the Medium Term Financial Plan Executive Savings proposals in respect of Public Health transition be supported.

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

The proposals set out in this report take as their starting point the updated 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 is included elsewhere on the agenda. The proposals represent the second phase of the programme to address the need to make significant budget reductions over the next two years and beyond, building on the measures agreed by the Executive in December.

The Corporate Director’s report includes financial forecasts for the next four years, including sensitivity analyses, and identifies remaining savings requirements based on a number of factors and assumptions. The forecasts suggest that reductions of around of around £4.716m are required for 2013/14 and that the cumulative on-going savings requirement to 2014/15 will amount to some £14.598m

In response to the forecasts contained in that report the Executive (in conjunction with the Wider Leadership Team) has developed revised spending plans and has drawn up further savings proposals for the next two years which total £11.984m. At this stage it is anticipated that £4.473m worth of these savings will be delivered during 2013/14, following a period of consultation. Together with the utilisation of New Homes Bonus resources the successful implementation of the proposed measures would enable a balanced budget to be set for 2013/14 and would reduce the estimated savings requirement for 2014/15 to around £2.6m.

In respect of the additional savings proposals set out in section five of the report and summarised at Appendix Three, the Executive is recommended to:

·         agree the savings proposals for consultation;

·         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 July, together with the outcomes of the consultation exercises;

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

The Executive is also recommended to:

·         approve the proposed treatment of NHS Funding for Social Care, Public Health Grant and New Homes Bonus as set out in paragraphs 4.15 to 4.23;

·         approve amendments to the schedule of Fees and Charges for 2013/14 as set out in Annex One

In respect of the Revenue Budget, Capital Programme and Medium Term Financial Plan, the Executive is asked to recommend that the Council Meeting:

·         agrees the Budget for 2013/14 set out in Appendix Five;

·         Notes and comments upon the financial forecasts for 2014/15 to 2016/17 (Appendix Six), and the key issues to be addressed in formulating a response to the continuing financial challenges facing the Council;

·         passes the appropriate Council Tax resolutions which produce a Council Tax increase of 2.5% for Council services as illustrated at Appendix Eleven;

·         approves the 2013/14 to 2015/16 capital programme and the funding arrangements set out at Appendix Nine;

·         approves the prudential indicators set out in Appendix Ten;

·         approves the work being carried out on the development of capital projects to enable the Executive to be able to review revise and extend its capital programme during 2013/14;

·         notes the risk assessment of the budget at Appendix Seven and the report of the Corporate Director, Corporate and Support Services on the adequacy of proposed financial reserves and robustness of the estimates included at Appendix Eight.

Officer contact: Steve Houston/ Andy Moran, 0161 474 4000/ 4086 steve.houston@stockport.gov.uk / Andrew.moran@stockport.gov.uk

The Leader of the Council (Policy, Reform & Finance) submitted a report (copies of which had been circulated) submitted a report (copies of which had been circulated) setting out proposals that would form the second phase of the programme to address the need to make significant budget reductions over the next two years and beyond, building on the measures agreed by the Executive in December 2012. The proposals took as their starting point the updated forecasts and indicative spending plans contained in the report of the ‘Medium Term Financial Plan – Financial Landscape and Forecasts 2013/14 to 2016/17’. The forecasts suggested reductions of approximately £4.716m were required for 2013/14 and that the cumulative on-going savings requirement to 2014/15 would amount to £14.598m

Further savings proposals had been developed for the next two years totaling £11.984m. It was anticipated that £4.473m worth of these savings would be delivered during 2013/14, following a period of consultation. Together with the utilisation of New Homes Bonus resources the successful implementation of the proposed measures would enable a balanced budget to be set for 2013/14 and would reduce the estimated savings requirement for 2014/15 to around £2.6m.

RESOLVED – (1) That, in respect of the additional savings proposals set out in section five of the report and summarised at Appendix Three

·         the savings proposals be agreed for consultation;

·         the Chief Executive and Corporate / Service Directors, in consultation with the relevant executive councillors, be requested 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;

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

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

(2) That approval be given to:

·         the proposed treatment of NHS Funding for Social Care, Public Health Grant and New Homes Bonus as set out in paragraphs 4.15 to 4.23;

·         the amendments to the schedule of Fees and Charges for 2013/14 as set out in Annex One

(3) That, in respect of the Revenue Budget, Capital Programme and Medium Term Financial Plan, the Council Meeting be recommended to:

·         agree the Budget for 2013/14 set out in Appendix Five;

·         note and comment upon the financial forecasts for 2014/15 to 2016/17 (Appendix Six), and the key issues to be addressed in formulating a response to the continuing financial challenges facing the Council;

·         pass the appropriate Council Tax resolutions which produce a Council Tax increase of 2.5% for Council services as illustrated at Appendix Eleven;

·         approve the 2013/14 to 2015/16 capital programme and the funding arrangements set out at Appendix Nine;

·         approve the prudential indicators set out in Appendix Ten;

·         approve the work being carried out on the development of capital projects to enable the Executive to be able to review revise and extend its capital programme during 2013/14;

·         note the risk assessment of the budget at Appendix Seven and the report of the Corporate Director, Corporate and Support Services on the adequacy of proposed financial reserves and robustness of the estimates included at Appendix Eight.