Report of the Strategic Director (Growth and Development) attached

This report provides an updated Growth and Development 2021/22 budget and sets out the 2021/22 savings proposals which reflects any feedback from both the November and January Scrutiny committees.

Further to minute Esc/21/2 (ESC/21/2 Growth and Development Directorate Budget Proposals 2021/22), the Committee considered a report of the Strategic Director – Growth and Development, which provided a further update on the savings proposals being proposed as part of the 2021/22 budget process which reflected any feedback from the November 2020 meeting.

The Leader advised that that the changes contained in the report were either as a result of recommendations previously made by the Committee or where of such a minor nature that they did not significantly impact on the overall budget proposals.  He made the Committee aware that the proposal to reduce the number of posts on Planning and Building Control was being reviewed as there was concern that this proposal would result in a loss of income.  It was planned that the outcome of this review would be reported to the Executive on 17 February 2021.

Key points to note were:-

·                As at December 2020 the Directorate was forecasting a net overspend of £2.965m, this included Covid-19 related pressures of £5.527m, offset by in year mitigation of £2.562m;

·                The Covid-19 pressures are made up of a combination of £4.523m reductions in income and increased cost pressures of £0.992m;

·                The main loss of income had arisen within the Investment estate due to tenants not being in a position to pay their rents because their business has been impacted by Covid-19;

·                In addition to the income reductions, there have been increased costs with the main costs being in respect of supporting the Corporate response to supporting the City’s most vulnerable residents, this was forecast to cost net c.£0.783m in the current financial year; and

·                As part of the ongoing work seeking to mitigate the above pressures in year forecast savings of £2.562m had already been identified, this was largely due to staff savings because of vacant posts and reduced running costs across all services.

The Committee was invited to comment on the report prior to it being considered by Executive.

Some of the key points that arose from the Committees discussions were:-

·                It was welcomed that the concerns raised by the Committee at its previous meeting had been taken into account in the budget proposals;

·                Whist acknowledging the budget constraints the Council faced, it was disappointing to see that the Council would have to end its support to My Future ILM and the impact this would have on the ability to coordinate skills, training and employment support offered at a local level; and

·                It was proposed that the views of the Committee in regard to the changes to the budget savings associated with Planning and Building Control be taken into account as part of the service redesign that would be taking place.

The Leader commented that it would be important for local government to continue lobbying central government to take a devolved approach to skills and employment programmes with the capacity to join these up with national programmes, in order to ensure the best outputs and value for money.

Decision

The Committee agree the saving proposals as described within the report and endorse these to the Executive.