Issue - meetings

To consider a report by the Head of Resources on progress of the zero based budgeting process.

Received the comments of the Economic Well-being Overview and Scrutiny Panel in support of the ZBB process for the setting of the 2015/16 Budget and the Medium Term Financial Strategy, the “process” findings and “savings” to date, and the revised timetable for the completion of reviews of all other Council services by November 2015 in preparation for the setting of the 2016/17 Budget and the Medium Term Financial Strategy.

Consideration was given to a report by the Head of Resources (a copy of which is appended in the Minute Book) on progress of the Zero Based Budgeting (ZBB) programme. Executive Councillors had considerable involvement in the programme and they were satisfied that the process had been robust and that much has been learned. There had been a mixed approach from services, though this could partly be attributed to a lack of understanding about how the Council defined ZBB and about what practical steps were required for the star chamber. The Cabinet discussed the approaches taken by individual services and their performance in the star chamber. The Corporate Management Team was charged with robustly enforcing the Cabinet’s view that cultural change should be adopted along ZBB principles.

All services had been required to do more work on their individual budgets for inclusion in the draft budget, which was being prepared by Officers in conjunction with their respective Executive Councillors. There would be scope for further debate by Members and changes to be made before the budget was finalised in February.

Of the improvements that needed to be made to the process, the most important was to develop the Council’s systems to provide the necessary financial / management information to enable Officers to manage and monitor their services. In particular, the new systems would resolve what service budgets included and what were deemed to be corporate costs. In addition, it was confirmed this information would be independently verified. The Cabinet requested that a plan of the action that would be taken leading to the introduction of the new systems was submitted to a future meeting.

The Cabinet noted the comments of Members of the Economic Well-being Overview and Scrutiny Panel. The Panel had welcomed the Cabinet’s approach to working with them. The Chairman of the Panel invited all Executive Councillors to the Panel’s meetings in the New Year to discuss their budget proposals. Further scrutiny work would be undertaken on their performance throughout the year.

RESOLVED

a)  that the ZBB process for the setting of the 2015/16 Budget and the Medium Term Financial Strategy and the “process” findings and “savings” to date be noted;

b)  that the revised timetable for the completion of all other Council services by November 2015 in preparation for the setting of the 2016/17 Budget and the Medium Term Financial Strategy be approved;

c)  that the comments of the Overview and Scrutiny Panel (Economic Well-Being) on the contents of the report be noted, and

d)  the process of the Star Chamber and the improvements to the robustness of financial information be noted.