Report of the Deputy Chief Executive and City Treasurer; City Solicitor; and Assistant Chief Executive.

This report provides a further update to members on the priorities for the services in the remit of this committee and details the changes to the initial revenue budget options proposed by officers in November 2022. The provisional financial settlement announced 19 December reflected a change in government policy in relation to funding inflation and social care pressures. This has given the opportunity to review the quantum and phasing of savings. It is now proposed that options of £36.2m are progressed, of which £7.712m is within the remit of this scrutiny committee.

The Committee considered a report of the Deputy Chief Executive and City Treasurer, the City Solicitor, and the Assistant Chief Executive, which provided a further update to members on the priorities for the services in the remit of this committee and detailed the changes to the initial revenue budget options proposed by officers in November 2022.

Key points and themes within the report included:

• It was now proposed that savings options of £36.2m are progressed, of which £7.712m is within the remit of this scrutiny committee;
• The Corporate Core is made up of Chief Executives and Corporate Services and has a gross budget of circa £317 million and a net budget of circa £98.9 million and employs over 2,000 Full-Time Equivalent (FTE) employees;
• Traded services within Operations and Commissioning are also within the remit of the Resources and Governance Scrutiny Committee, and have a gross budget of £22.9 million, a net income budget of £13.7 million and 126 employees;
• Initial proposed cuts and savings options suggested in November 2022 amounted to £10.26m over the three years. As a result of the improvement in the short-term budget position following the Autumn Statement and Provisional Finance Settlement, proposed cuts and savings of £2.920m have been removed or deferred until later years;
• Revised core budget savings will be delivered through a combination of:
  • Transformation delivered through the Future Shape Programme.
  • Review of workforce structures and capacity and adopting a realistic view on abilities to fill longstanding vacancies.
  • Good housekeeping and delivery of efficiencies.
  • Delivering a corporate programme of work on ensuring the basics are right, sound and competitive procurement, approach to managing inflation, ensuring income budgets are maximised and charges appropriate.
• Further budget savings and efficiencies made up of £170k additional income generation and £3.29 million efficiencies;
• Budget pressures and workforce implications; and
• Future opportunities and risks.

Key points and queries that arose from the committee’s discussions included:

• Whether any consideration had been given to raising the proportion of council tax covered by the Council under the Council Tax Support Scheme (CTSS), and
• The likeliness that all vacant units within the Gorton Hub would be let.  

The Leader of the Council introduced the item and explained that in proposing the budget for the Corporate Core directorate, officers had tried to protect frontline services to ensure continued support for the most vulnerable residents, particularly given the current cost-of-living crisis. She highlighted decisions to invest money into helping communities through discretionary payments, funding for food provisions and expanding debt support and emphasised that support was available for those in need.

The Deputy Chief Executive and City Treasurer explained that the Council was considering changing the level of council tax paid by residents on CTSS from the current maximum of 17.5% to 15%. Any change would require a full consultation, and this was anticipated to be undertaken within the next year. Any changes would then be implemented through the 2024/25 budget process.

In response to the Chair’s query regarding vacant units in the Gorton Hub, it was stated that it was decided to include a second floor on the Hub during the design phase as it was felt that this would be cost-effective if the building was let and that there was demand for office space. The Deputy Chief Executive and City Treasurer was confident that the vacant units would be let through the reconfiguration of council offices and as the Hub became established and attracted potential occupants for partnership working.

Decision:

That the report be noted.