Issue - meetings

To receive a report by the Head of Resources to provide an update on the Zero Based Budgeting process in preparation for the 2016/17 Budget and Medium Term Financial Strategy.

i.  Notes the progress of the Zero Based Budgeting exercise to date; and

ii.  Agrees the Tranche 3 savings proposals, as detailed in Appendix 1 of the Officer’s report, for inclusion in the forthcoming 2016/17 Budget and Medium Term Financial Strategy.

The Cabinet received a report by the Head of Resources (a copy of which is appended in the Minute Book) regarding the Zero Based Budgeting (ZBB) exercise and the inclusion of the Tranche 3 savings proposals in the forthcoming 2016/17 budget and Medium Term Financial Strategy.

As part of the budget setting cycle for 2016/17, the Council was continuing the Zero Based Budgeting (ZBB) exercise that started during the last financial year in preparation for the 2015/16 budget. The ZBB process was divided into a number of Tranches, with Tranche 1 having been undertaken during Autumn 2014 (in which £1.8m was removed from the Council’s 2015/16 budget) and Tranches 2 and 3 being undertaken during 2015/16.

In preparation for 2016/17 budget setting, Tranche 2 commenced in April 2015 and concluded with a Cabinet led Star Chamber in mid-July 2015 that was reported to the Cabinet in September 2015. Tranche 3 commenced in August 2015 and concluded with a Cabinet led Star Chamber in late November 2015; the estimated savings totalled in excess of £2.6m.

The services that had been subject to a ‘heavy’ review during Tranche 3 were:

•  Community: CCTV

•  Customer Services: Local Taxation and Benefits

•  Operations: all services

•  Leisure & Health: Sports and Active Lifestyle Team

•  Corporate Team and Directors

In addition to the savings identified, the CCTV and Sports and Active Lifestyle Teams had been requested to investigate a number of additional opportunities for savings. If any additional savings were identified as a result of this further work it would be reported as part of the overall Budget Setting 2016/17 report.

In February 2016 the Council would be presented with the proposed Budget for 2016/17 and the Medium Term Financial Strategy and would set the Council Tax for the forthcoming year.  During discussions the Cabinet indicated a preference for a further freeze on Council Tax for 2016/17.

The Cabinet commended all those involved in the ZBB process.  The Cabinet has accepted that some of the savings identified via the Facing the Future programme had been included in the ZBB process.  However, in order to identify further savings the Cabinet requested that those proposals not included in the ZBB process should be progressed. 

Having considered the comments of the Overview and Scrutiny Panel (Economic Well-Being) the Cabinet

RESOLVED

 i.  to note the progress of the Zero Based Budgeting exercise to date; and

ii.  agree the Tranche 3 savings proposals, as detailed in Appendix 1 of the Officer’s report, for inclusion in the forthcoming 2016/17 Budget and Medium Term Financial Strategy.

To consider a report by the Head of Resources on the Budget 2016/17 and the Medium Term Financial Strategy.

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

By means of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Panel was updated on progress of the Zero Based Budgeting (ZBB) reviews, which had been undertaken in preparation for setting the 2016/17 Budget. Members were reminded of the reasons for introducing ZBB and the ZBB Tranche 1 achievements.

Members discussed the outcome of the ZBB work that had been completed in the current year. As last year an external specialist had been retained to provide strategic benchmarking, forecasting and budgeting advice. A Star Chamber comprising the Executive Leader and the Executive Leader for Resources had been presented with service change options together with additional opportunities for savings. Any additional savings would form part of the overall Budget setting process for 2016/17.

With regard to the impact of ZBB and the Star Chamber processes resources, Members noted that between 2016/17 and 2019/20 forecast net saving to the Budget was 18.7%, with a total contribution to reserves of £6.7m. This represented a potential change of £13m compared with the current Medium Term Financial Strategy (MTFS) modelled total draw-down from General Reserves of £6.3m in the same period. While Members commended the achievements to-date, they also accepted that decisions during subsequent rounds of ZBB would be more challenging.

The Panel then reviewed the savings proposals contained in Appendix 1 to the report by the Head of Resources. Following a question by Councillor P L E Bucknell, the Panel was provided with the justification for predicted savings against specific budgets. Members acknowledged the improvement in the accuracy of the forecasting and profiling of savings.

In response to a question by Councillor T D Alban, the Panel was informed that planned co-location of Citizens Advice and the Department for Work and Pensions at Pathfinder House represented an appropriate match with Council services. This view was endorsed. Having been assured that the changes would make little difference to the Council’s critical services, the Panel:

RESOLVED

that the Cabinet be recommended to include the savings proposals contained in Appendix 1 to the report now submitted in the forthcoming 2016/17 budget and MTFS.

(At 7.20pm Councillor R S Farrer left the meeting).