Decision details

RESOLVED to note the following observations from the Overview and Scrutiny Committee in response to the Service and Financial Planning 2022/23 report:

1)            The national and local policy context and significant uncertainties at this stage of the budget-setting process were noted.

2)            The Service and Financial Planning 2022/23 report forecasts a budget gap of over £700k. In the light of this and given that assumptions and individual budgets were to be reconsidered following the December Government financial settlement announcement, the Committee did not draw a conclusion on the overall Budget proposals for 2022/23.

3)            The Committee requested that the final Service and Financial Planning 2022/23 report to Executive on 27 January to be an agenda item for discussion at Overview and Scrutiny Committee on 20 January.

4)            The Committee considered the explanations in the Budget report for year on year changes in the budget and found the following to be achievable, realistic and based on sound financial practices and reasonable assumptions, subject to the outstanding matters set out in (i) and (ii):

a)    Medium Term Financial Plan Summary

b)    Revenue Budget Savings and additional income proposals totalling £0.566m

c)    Revenue Budget Growth proposals totalling £0.567m

d)    Forecast ongoing income budget pressures in 2022/23 onwards as a consequence of the COVID-19 pandemic totalling £1.3m

e)    Revenue Reserve Balances as of 1 April 2021 of £41.738

5)            The Committee reviewed savings proposals in service delivery: to pause the Medium Grants and Small Grants scheme, to withdraw the taxi voucher scheme and to reduce the Borough News publication to a single issue a year, and asked they be reconsidered.

6)            The Committee expressed concerns about recent inflationary pressures with short term inflation well above the Bank of England 2% target which would put unbudgeted upward pressure on the cost of goods and services and on staff costs/pay demands.

7)            In relation to potential future cost savings the Committee supported initiatives to:

·         Assess the potential reduction of office space reflecting the impact of hybrid working.

·         Implement joint working with the boroughs and districts in East Surrey to share costs and improve services.

The Committee asked these initiatives to be accelerated.

8)            The Committee recommended that the need to fill vacant headcount positions be reconsidered (currently 22 full-time equivalent staff (FTE) equating to £1m salary and on-costs). These vacancies had been confirmed as part of the Service and Financial Planning reconciliation of HR establishment records and service budgets for all services.

9)            Implementation of the Council’s Commercial Strategy was vital to meeting budget gaps in future years, as Government funding is further reduced. Part 2 of the Commercial Strategy report was an agenda item at Overview and Scrutiny Committee on 9 December and due to be approved by Executive on 16 December. At this stage the Committee noted that no substantial additional commercial income from investments was included in the current 2022/23 budget.

10)         The Committee noted that the Executive intends to come forward with a Financial Sustainability Plan to be integrated with the Medium-Term Financial Plan (MTFP) in Quarter 1 2022/23