Agenda item

(Copy herewith)

The Director of Finance and Support submitted a report, which outlined the risk assessment of the budget proposals. It was noted that the relevant Heads of Service had completed a risk assessment as part of the Medium Term Financial Plan. The schedule of budget options (attached at Appendix 1 of the report), which outlined a more detailed approach of the options, put forward for consultation.

The Director of Finance and Support briefed Members of the process, which would be undertaken during the proposed restructuring of departments. The calculated risk would be the result of the consultation and whether or not the savings would be delivered. It was reported that in some areas there had been synergies, which had resulted in a duplication of skills. 

Councillor Hawkins asked, in relation to the deletion of the post of Landscape Architect, if there would be a danger to the budget process if it became apparent that the terminated position would be needed in the future and what costs would be incurred should an employee be taken on temporarily. The Director of Finance and Support reported that the post had been vacant for the past three years; should it be become necessary, a person could be employed on a temporary basis.

In response to a question posed by Cllr Garlick, the Director of Finance and Support informed the Committee that there remained an adequate amount of flexibility in the budget and the increased level of General Reserve held would leave a balanced budget for the year, but increased efficiency would be necessary in future years.

It was noted that a significant exercise had been conducted to review the 25% Single Person Discount (SPD) on Council Tax. Work had been carried out with approval of the County Council, which had examined the number of claimants for the 25% discount. The actual number of people who had been claiming SPD was in the region of 32,000 residents – the number of which had reduced significantly after the review had been carried out which was still being worked on.

In reference to the increase in Fees and Charges for room hire across museum, Cllr Hawkins asked for further clarification with regards to the actual risk and whether any financial assessments had been done into whether the abolition of fees would increase the amount of people visiting the area and thus increasing spending in the local area. It was reported that there would not be an increase in fees to the admission of Leathercraft, but there would be a small increase in room hire and refreshment charges.

The Chair asked how Risk would be dealt with in relation to Localism and if the Councils budget would cope with further government demands and cut backs. The Director of Finance and Support reported that the Council had an adequate overall level of reserves. Due to the speed in which some Government decisions had been made there was a necessity to have a healthy reserve in order to cope with time limited budget proposals. It was further reported that the reserves were there to cover unforeseen circumstances and the Council was attempting to build up the reserves at a steady rate.

RESOLVED:

            That issues in relation to risk within the budget proposals for 2011-12 were considered.