Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) setting out the ideas from Councillors to help address the financial challenges the Council is facing for 2024/25 and the medium term.

The report also drew attention to the decision of the Cabinet on 31^st October 2023 to approve the increase in fees and charges from April 2024 (Minute 51, refers).  It was now proposed that the implementation date for the increase in fees and charges be brought forward to 1^st January 2024 to urgently assist with the in-year projected overspend reported to Cabinet on 20^th November 2023.

In considering the Councillor suggestions the Cabinet noted that the idea put forward for the introduction of new parking bays (page 20 – Appendix 1 of the report) was submitted by Councillor Woodley and not Councillor Dent as indicated in the report.

Resolved:

1. That the ongoing significant financial challenges facing the Council in the medium term and the valuable contributions made by Councillors in coming forward with a range of ideas to help plan for longer term financial sustainability of the Council, be noted.

2. That it be noted that the full range of Councillor ideas and the proposed way to deal with them accordingly, as set out by category in Appendix 1 to the submitted report, be noted.

3. That the earlier implementation date of 1 January 2024 for the increase in fees and charges, as set out in the report, subject to the normal notification and consultation periods where required, be approved.

4. That the commencement of market testing, followed by procurement as necessary for the proposed commercial operation of the Pier, be approved.

Reasons for Decisions:

1. The key intention behind the report is to seek a way forward with the Councillor ideas that have been provided as part of consideration for the Council’s budget. It will also help to inform the decision making needed to ensure the Council’s medium term financial sustainability is maintained and robust budget setting for future years is achieved.

2. The challenge of delivering a balanced financial outturn for 2023/24 remains significant and some of these factors are contributing to increasing the scale of the financial challenge for 2024/25. The Council continues to try to reduce all non-essential expenditure and/or generate extra income. This priority must be achieved whilst ensuring that our most vulnerable residents are looked after appropriately, and our statutory responsibilities are effectively discharged. Improving efficiency and productivity is essential but the scale of the unprecedented financial pressures will inevitably lead to a reduction in the range, quality, cost and responsiveness of other discretionary Council services, as well as challenging our approach to statutory services. There is the need to consider all suggestions put forward to help support the delivery of a robust and balanced budget for 2024/25 and beyond.

Other Options

Not to progress with all or some of the Councillor ideas put forward in Appendix 1 to the report.  However, this would need to  ...  view the full minutes text for item 69

Report of Executive Director (Finance and Resources) to follow as a supplementary pack

The Committee considered the report of the Executive Director of Finance and Resources (S151 officer) which had been referred direct by the Cabinet from the meeting held on 31^st October 2023.

The report had been circulated prior to the meeting as a supplementary agenda item and set out a range of proposals to help to address the financial challenges the Council was facing, to allow sufficient time to develop and make the necessary detailed arrangements which included appropriate consultation.

The Committee asked a number of procedural questions regarding a S114 notice, any what would happen if one was required to be issued, which were responded to by the S151 officer (the Executive Director of Finance and Resources).

On consideration of the report the Leader of the Council made a commitment that Group Leaders would be involved in the development of the proposed consultation(s) to ensure the best quality responses, and that they would have the opportunity to participate in ‘Revenue Challenge Sessions’. (Action noted).

The Committee discussed the report at length and asked a number of questions which were responded to by the relevant Cabinet Members. In response to a committee member’s question regarding business support grants, the Leader of the Council requested for the meeting to move into exempt session at the end to briefly discuss, to which the Chair agreed.

The Leader of the Council clarified the net General Fund Revenue Budget position for 2023/24 of £143.875M, and that the language would be corrected in future reports.

During the debate a Councillor sought reassurance that he would receive a response regarding a £300,000 overspend in the Highways budget. (Action noted).

Prior to the meeting, the Chair of the Committee requested all Councillors to put forward any ideas for revenue generation / revenue savings which were being collated by Democratic Services so that details could be supplied to Cabinet Members. At the time of the meeting, the Chair confirmed that responses had been so far received from Councillor R Woodley, Councillor S Aylen, Councillor M Dent, Councillor A Jones, Councillor M Berry, Councillor R McMullan and Councillor M Terry.

The Leader of the Council reaffirmed his commitment to appraising all suggested revenue saving / revenue generating ideas at a future meeting of the Cabinet. In order for all suggestions to sufficiently be reviewed by officers and appraised by the Cabinet, all Councillors were requested to submit their responses to Democratic Services and the Chair of the Policy and Resources Scrutiny Committee within the following 7 days. (Action noted).  

During the debate a number of revenue saving / revenue generation suggestions were put forward by Members, which were logged by Democratic Services. These included:

·       to review the modelling for burials in Southend with a comparison of nearby neighbours, and whether an alternative fee structure could be introduced for those living outside of the City.

·       Associated cost savings and possibility of moving staff from Civic 2 into the main tower block (estate optimisation).

·       Subsidies to bowl clubs.

The  ...  view the full minutes text for item 43

Report of Executive Director (Finance and Resources)

The Cabinet considered a report of the Executive Director (Finance and Resources) presenting a range of proposals for decision to help to address the financial challenges the Council is facing and to allow for sufficient time to develop and make the necessary detailed arrangements, including appropriate consultation.

Resolved:

1.  That the significant financial challenges facing the Council and the immediate action required in-year to mitigate the scale of current year overspending as well as plan for longer term, fundamental re-design of Council service delivery, be noted.

2.  That the work already in progress under existing delegations to the

Chief Executive and senior officers, be noted.

3.  That the decisions outlined in Appendix 1 to the submitted report be approved and authority be delegated to the relevant Executive Director to take all necessary action to realise savings, income generation and cost avoidance measures related to those decisions.

4. That authority be delegated to the relevant Executive Director, in consultation with the relevant Cabinet Member to agree the consultation document for decisions in Appendix 1 subject to statutory consultation. The outcome of the consultation and resulting recommendations to be taken back to Cabinet for agreement.

5. That officers continue to develop the longer-term service re-design measures as set out in the report and that Cabinet receive a future report on the projected impact of that service redesign on the Council’s finances.

6. That it be noted that the Chief Executive, in consultation with the Leader, will develop a new design for service delivery based upon a localities model for approval at a future meeting of the Cabinet.

Reasons for decision:

The key intention behind the report is to seek approval to start to formalise a comprehensive assessment of initiatives to begin to build a package of budget proposals transparently and as early as possible, given the current unprecedented operating and financial pressures. It will also help to inform the decision making needed to ensure the Council’s medium term financial sustainability is maintained and robust budget setting for future years is achieved.

Other options:

The Council could choose not to progress with all or some of the proposals attached in Appendix 1 of the report.  However, that would not be the recommended course of action at this stage given the significant financial challenges currently being faced by the Council.

Note: This is an Executive Function

Referred direct to: Policy and Resources Scrutiny Committee

Cabinet Member: Cllr Cox

Report of Executive Director (Finance & Resources)

Cabinet Minute No. 36 (Agenda Item No. 7 refers)

Called-in by Councillors Collins, McMullan & Mulroney

The Committee considered Agenda Item 7 of the meeting of the Cabinet held on 18 September 2023, ‘Finance and Corporate Performance Report 2023/24 to end of July 2023 (Period 4), Cabinet Minute No.36 refers. The report of the Executive Director (Finance & Resources) had been called-in and referred to the Policy and Resources Overview and Scrutiny Committee.

The Finance and Corporate Performance report set out the current operating environment and the significant increases experienced in both service demand and the ongoing unavoidable inflationary cost pressures, summarised the current forecast position and highlighted the need to make some difficult choices and take decisive action.

A brief discussion took place on tree net gain in the City, following which the Leader explained that in future he would request that any figures be reported in terms of tree canopy change rather than tree net gain.

The Leader confirmed that he would ensure a written response was provided to the Committee in relation to point 8.8, the average length of pre-proceedings for the Public Law Outline (PLO) in order to provide clarification on the above target of 14 by 4.7 due to late expert assessments.

It was highlighted that the Legal Services team had significant problems with permanent recruitment and as a result expenditure on agency staff to cover vacant roles was forecast to cause a pressure of £120,000.

The Leader reported that it would be clarified outside of the meeting how long the transition of Mental Health services was expected to take. 

In relation to the quarterly snapshot of families with children in Bed and Breakfast for over 6 weeks, the Leader confirmed a written answer would be provided to the Committee to advise how many were out of area placements.

Resolved:

That the following recommendations of the Cabinet (1-3) be noted:

1.     That the unprecedented levels of reported financial pressure and challenges right across the local government sector as set out at Appendix 1 of the submitted report, be noted.

2.     That, in respect of the 2023/24 Revenue Budget Performance as set out in Appendix 2 to the submitted report:

(i)             The forecast outturn for 2023/24 for the General Fund and the Housing Revenue Account as at 31 July 2023, be noted.

(ii)            The plans and intentions to try to reduce the forecast overspend of the Council’s revenue budget for 2023/24 be noted and that the Chief Executive and Executive Director (Finance & Resources) be requested to explore all opportunities within their delegated powers and authority to improve the financial position by the year-end as set out in section 5 of the submitted report.

(iii)           The planned budget transfers (virements) of £308,600 from earmarked reserves, as set out in section 5.50 of the submitted report, be approved.

3.     That, in respect of the 2023/24 Capital Budget Performance as set out in Appendix 3 of the submitted report:

(i)             The expenditure to date and the forecast outturn as at 31 July 2023 and its financing, be noted.

(ii)            The Corporate Performance Report as at 31  ...  view the full minutes text for item 37

Report of Executive Director (Finance and Resources) to follow

The Cabinet considered a report of the Executive Director (Finance & Resources) summarising the current forecast position at this early stage of the financial year and which highlighted where corrective action would be necessary and reasonable mitigation is required to try to deliver a balanced financial position by the end of the year.

Resolved:-

1. That the unprecedented levels of reported financial pressure and challenges right across the local government sector as set out at Appendix 1 of the submitted report, be noted.

2. That, in respect of the 2023/24 Revenue Budget Performance as set out in Appendix 2 to the submitted report:

(i)  The forecast outturn for 2023/24 for the General Fund and the Housing Revenue Account as at 31 July 2023, be noted.

(ii)  The plans and intentions to try to reduce the forecast overspend of the Council’s revenue budget for 2023/24 be noted and that the Chief Executive and Executive Director (Finance & Resources) be requested to explore all opportunities within their delegated powers and authority to improve the financial position by the year-end as set out in section 5 of the submitted report.

(iii) The planned budget transfers (virements) of £308,600 from earmarked reserves, as set out in section 5.50 of the submitted report, be approved.

3. That, in respect of the 2023/24 Capital Budget Performance as set out in Appendix 3 of the submitted report:

(i)  The expenditure to date and the forecast outturn as at 31 July 2023 and its financing, be noted.

(ii)  the Corporate Performance Report as at 31 July 2023 set out in Appendix 4 of the submitted report, be noted.

Recommended:

4. That the requested changes to the capital investment programme for 2023/24 and future years, as set out in section 4 of Appendix 3 of the submitted report, be approved.

Reasons for Decisions

To provide detailed financial information on the financial performance of the Council. The report sets out the key variances by budget holders and associated management action being implemented to address the identified issues.

Other Options

The Council could choose to monitor its budgetary performance against an alternative timeframe, but it is considered that the current reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Councillors and to also formally manage the Council’s exposure to financial risk.

Note: The decisions in resolutions 1 to 3 above constitute an Executive function and the recommendation in 4 above constitutes a Council function.

Eligible for call-in to the Policy & Resources Scrutiny Committee

Cabinet Member: Cllr Cox

The Cabinet considered a report of the Executive Director (Finance & Resources) summarising the current forecast position at this early stage of the financial year and which highlighted where corrective action would be necessary and reasonable mitigation is required to try to deliver a balanced financial position by the end of the year.

Resolved:-

1. That the unprecedented levels of reported financial pressure and challenges right across the local government sector as set out at Appendix 1 of the submitted report, be noted.

2. That, in respect of the 2023/24 Revenue Budget Performance as set out in Appendix 2 to the submitted report:

(i)  The forecast outturn for 2023/24 for the General Fund and the Housing Revenue Account as at 31 July 2023, be noted.

(ii)  The plans and intentions to try to reduce the forecast overspend of the Council’s revenue budget for 2023/24 be noted and that the Chief Executive and Executive Director (Finance & Resources) be requested to explore all opportunities within their delegated powers and authority to improve the financial position by the year-end as set out in section 5 of the submitted report.

(iii) The planned budget transfers (virements) of £308,600 from earmarked reserves, as set out in section 5.50 of the submitted report, be approved.

3. That, in respect of the 2023/24 Capital Budget Performance as set out in Appendix 3 of the submitted report:

(i)  The expenditure to date and the forecast outturn as at 31 July 2023 and its financing, be noted.

(ii)  the Corporate Performance Report as at 31 July 2023 set out in Appendix 4 of the submitted report, be noted.

Recommended:

4. That the requested changes to the capital investment programme for 2023/24 and future years, as set out in section 4 of Appendix 3 of the submitted report, be approved.

Reasons for Decisions

To provide detailed financial information on the financial performance of the Council. The report sets out the key variances by budget holders and associated management action being implemented to address the identified issues.

Other Options

The Council could choose to monitor its budgetary performance against an alternative timeframe, but it is considered that the current reporting schedule provides the appropriate balance to allow strategic oversight of the budget by Councillors and to also formally manage the Council’s exposure to financial risk.

Note: The decisions in resolutions 1 to 3 above constitute an Executive function and the recommendation in 4 above constitutes a Council function.

Cabinet Member: Cllr Cox

*Called-in to Policy & Resources Scrutiny Committee