Policy and Resources Committee Minutes of the Meeting Held on 31 October :00am Edwards Room, County Hall, Norwich
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1 Present: Mr C Jordan (Chairman) Policy and Resources Committee Minutes of the Meeting Held on 31 October :00am Edwards Room, County Hall, Norwich Mr M Castle Mr T Coke Mrs H Cox Mr A Dearnley Mrs J Leggett Mr I Mackie Mr I Monson Mr S Morphew Mr G Nobbs Mr A Proctor Mr D Roper Mr B Spratt Mr B Stone Dr M Strong Mrs A Thomas Substitute Member Present: Mr R Parkinson-Hare for Mr M Baker Also Present: Mr B Borrett Mrs M Dewsbury Mr R Smith Mr T Garrod Mr M Wilby 1. Apology for Absence 1.1 An apology for absence were received from Mr M Baker. 2 Minutes 2.1 The minutes of the previous meeting held on 26 September 2016 were confirmed by the Committee and signed by the Chairman. 3 Chairman s Announcement Journalism Students from the UEA 3.1 The Chairman welcomed to the meeting a group of journalism students from the UEA who were in the public gallery. It was pointed out that some of the students would take sound recordings of the meeting. 4 Declarations of Interest 4.1 Mr I Mackie declared an other interest in item 15 in that he was a member of the
2 Yare Multi Academy Trust. 4.2 Mr I Monson declared an other interest in Item 12 in that he was a member of the Management Committee for the Eastern Shires Purchasing Organisation. 5 Items of Urgent Business 5.1 There were no items of urgent business. 6 Public Question Time There was one public question from Mr Andrew Wiltshire regarding the Council s budget. The question together with the answer can be found as an Appendix to these minutes. 7 Local Member Issues 7.1 There were no local member issues. Section A Items for Discussion and Decision/Action 8 Finance Monitoring Period 5, August The annexed report (8) by Executive Director of Finance was received. 8.2 The Committee received a report by the Executive Director of Finance that gave details of the forecast position for the Revenue and Capital Budgets, General Balances, and the forecast Reserves at 31 March 2017, together with related financial information. The report also provided a brief commentary on Resources and Finance budgets which were the responsibility of this Committee. 8.3 The Committee discussed areas of the County Council s revenue spend (set out in paragraph 5 of the report) that could be included in the Council s capital spend, subject to the existing capital expenditure rules. 8.4 In reply to questions, it was pointed out that it was not possible for the changes contained in paragraphs 5 of the report to be factored into the capital budget for 2016/17 and beyond until they were agreed by full Council. These changes could be expected to begin to have an impact on the revenue budget in the final quarter of this financial year. The full year revenue saving for 2017/18 was expected to be between 2m and 2.5m. At the Committee s request, any further report on the issue would mention that the change of approach was not about finding new money. 8.4 It was suggested that when the latest monthly financial monitoring figures for the outturn position of the County Council became available then they should forwarded to Members of the Policy and Resources Committee by It was also suggested that the Committee should receive a further update report on issues considered by the ICT Working Group.
3 8.6 In reply to questions, the Managing Director said that she had recently met in London with the Minister for Children and Families who had agreed to take up a long standing invitation from the County Council to discuss a wide range of issues that impacted on Children s Services. She said that the issues that were discussed had not related directly to Looked After Children. The Manging Director added that the outcome of the Ofsted monitoring visit to Norfolk on 17 th and 18 th October 2016 was awaited and would be made known to Members in due course. 8.7 Members expressed a diversity of views about the Government s direction of travel for local authority expenditure and in particular about the assumptions the Government had made at the time of the 2016/17 local government settlement about Council Tax. It was pointed out that the assumed increases in Council Tax and the Adult Care Precept had met with the agreement of the Adult Social Care Committee and that all service committees were aware of the proposed inflation element to the proposed council tax increase. 8.8 With reference to the dedicated schools grant mentioned on page 36 of the agenda, Members asked to be provided with separate figures for high needs for all aspects of the Children s Services budget, and not just for Post 16 FE High Needs. 8.9 RESOLVED: That the Policy and Resources Committee: 1. Note the period 5 forecast Revenue overspend of m (P m); 2. Note the m forecast use of reserves in , including: a. use of m reserves anticipated as part of the budget approved at February County Council b. full use of the m business risk reserve as approved at the July meeting; 3. Note the forecast General Balances at 31 March 2017 of m, before taking into account any over/under spends; 4. Note the forecast financial information in respect of Resources and Finance budgets which were the responsibility of this Committee, as set out in Appendix 2 to the report; 5. Note the revised expenditure and funding of the capital programme as set out in Appendix 3 to the report; 6. Agree to recommend to Full Council additions of 4.710m to the capital programme for ICT projects, library books and capital project support, as set out in Appendix 3 paragraph 5 of the report. 9 Delivering Financial Savings The annexed report (9) by the Executive Director of Finance was received. 9.2 The Committee received a report by the Executive Director of Finance that provided details of the forecast outturn position in respect of the delivery of the savings agreed by the County Council at its meeting on 22 February
4 In reply to questions, it was noted that the County Council had undertaken a tendering exercise before awarding a time limited contract for the review of Resources. Of the 5 companies that had responded to the tendering exercise, the lowest priced tender had been accepted. The Managing Director agreed to share the terms of reference with Members of Policy and Resources Committee. 9.4 The Executive Director of Finance was asked to let Members know when the review of transport that was mentioned in paragraph of the report was due to be completed. 9.5 RESOLVED: That the Policy and Resources Committee note: 1. the forecast total shortfall of 9.464m in , which amounts to 23% of total savings, and for which alternative savings need to be identified; 2. the budgeted value of savings projects rated as RED of m, of which 2.089m were now forecast to be delivered; and 3. the forecast savings shortfall on AMBER rated projects of Budget and Medium Term Financial Planning to The annexed report (10) by the Executive Director of Finance was received The Committee received a report by the Executive Director of Finance that provided an update on the Council s budget setting process, and set out details of the actions required by Service Committees to enable the Council to set a balanced budget for The Executive Director of Finance said that the Committee would receive at its next meeting a report on the Autumn Statement that aimed to provide greater clarity on how the Government intended to reset economic policy. Because of the timing of the Autumn Statement, the report would have to be marked to follow on the Committee agenda Members discussed the County Council s approach to the budget planning process for 2017/18 and how this compared to that for the previous year. It was pointed out that in Autumn 2015 the Council had undertaken a substantial public consultation exercise which had resulted in a strong body of evidence of public views. Some Members suggested that a similar stakeholder and public customer exercise should have been undertaken this Autumn. They spoke about how last year s approach to the issue had put in place a strong mechanism for the public to express different ideas and for those views to be explored and debated openly and constructively, to help inform committees deliberations The Head of Business Intelligence said that last year s public consultation exercise
5 remained relevant and current and was being used as part of the planning for the 2016/17 budget setting process. The public consultation undertaken in Autumn 2015 was being supplemented with additional targeted consultation with affected groups, particularly those at risk of disadvantage. The savings that required consultation would be published on the Council s consultation hub at Citizen Space (https//norfolk.citizenspace.com/) before they were taken to the service committees The Chairman said that the planning for next year s budget aimed to focus on placing the budget setting priorities of the previous year into a sharper, more ambitious and more sustainable County Council budget. He assured the Committee that Service Committees would be able to consider the budget proposals, including the results of any consultation responses, before they were taken to Policy and Resources Committee and for approval by Full Council RESOLVED: That the Policy and Resources Committee: 1. Note that the Council s budget planning includes: a. a current forecast budget gap of 4.277m for ; and b. an assumed increase in council tax of 2% for the Adult Social Care precept, and an inflationary increase of 1.8% in Recommend the use of the 4.6m transitional grant monies to help ameliorate the level of savings required in 2017/18 to County Council for approval as part of the budget-setting process in February In order to help close the budget gap as set out in section 3 of the report: a. agree the proposed remedial actions for (detailed in paragraph 3.7 and 3.8) which would help to ensure that the budget was deliverable; b. agree the proposed new savings for for consultation where necessary; and c. note the scope there was for bringing forward the savings (b) above) for implementation in Note the statement regarding the robustness of budget estimates set out in paragraph 3.13 of the report. 5. Note that the budget model assumed the delivery of previously agreed savings as set out in Table 7, after adjustment for the reversal / removal of savings as set out in the report. 6. Note the new savings that were agreed by Service Committees as detailed in Appendix A of the report. 7. Note that consultation, where appropriate, was initiated by the relevant Service Committee. 11 Ash Die Back (Chalara)- Management of the NCC estate 11.1 The annexed report (11) by the Executive Director of Finance and the Executive Director of Community and Environmental Services was received.
6 11.2 The Committee received a report by the by the Executive Director of Finance and the Executive Director of Community and Environmental Services that highlighted the risks of ash dieback disease to Norfolk s public safety, economy and environment, and the potential resource implications for the County Council. The Committee also received a copy of the report on the issue that was considered in detail by the EDT Committee in September The Committee discussed the pan Council approach used by the EDT Committee to respond to the effects of the disease and to limit the long term effects. The Committee was informed that the EDT Committee had sought additional staffing resources within the County Council to tackle the issue. Members were informed that because of the large numbers of trees involved the existing staffing levels at the County Council were insufficient to cope with the problem. The District Councils that employed specialist arboricultural officers would be asked to provide what assistance they could, but it was acknowledged this would be a challenge due to the size of the problem The Committee agreed that in investigating funding for a proactive approach to the problem officers should write to Defra seeking financial help The Committee stressed the importance of working constructively with stakeholders and interested groups within the Norfolk countryside and of keeping landowners informed of where they could seek advice on how to address the technical issues that might arise from large numbers of mature trees declining and dying simultaneously RESOLVED: That the Policy and Resources Committee: 1. Approve the suggested approach to deal with the council-wide responsibilities for public safety and property as set out in the report. 2. Instruct officers to engage with landowners and tenants where their trees would affect NCC Estate to reduce the resource implications for NCC and streamlining the procedure to charge landowners if we had to undertake work on their behalf. 3. Instruct officers to write to Defra seeking financial help to cope with the size of the problem. 12 Procurement Six Monthly Update 12.1 The annexed report (12) by the Head of Procurement was received The Committee received a report by the Head of Procurement that set out a new approach to procurement that would ensure coherent, upstream arrangements for the contract pipeline ; strengthen management oversight and grip on processes, and put in place a programme of improvement to ensure front line managers were equipped to manage and monitor contracts effectively to maximise impact and value The Head of Procurement was asked to ensure that all service committees
7 received a report on any contracts of particular interest or concern when the current review of contract management was complete With reference to paragraph 22 on page 130, the Head of Procurement said that the Council received 323,000 in dividend from ESPO in 2015/16 (a corrected figure) and could be expected to receive between 450,000 and 500,000 in 2016/ RESOLVED: That the Policy and Resources Committee note: 1. The pipeline for the contracts mentioned in the report. 2. That all committees receive a further report on contract management when the current review was complete. 3. Agree to receive a six-monthly report such as that on the pipeline, other procurement and contract management issues, and the Council s membership of the Eastern Shires Purchasing Organisation. 13 Norfolk Business Rates Pool Annual Report The annexed report (13) by the Executive Director of Finance was received The Committee received a report by the Executive Director of Finance that provided a summary of the financial benefits of the Business Rates Pool and the decisions taken to date in respect of allocating the Pool s resources to Economic Development projects in Norfolk RESOLVED: 1. That Policy and Resources Committee noted the performance of the Norfolk Business Rates Pool and endorsed the decisions taken in respect of the allocation of the Pool s resources. 2. That Policy and Resources Committee will be asked to endorse the allocation of the pool surplus following discussions made at Norfolk Leaders Group. 14 Update on NCC Dormant Trusts 14.1 The annexed report (14) by the Executive Director of Finance was received The Committee received a report by the Executive Director of Finance that set out the progress made on the transfer of the Norfolk County Council s dormant trusts, as well as the updated routes for allocation of these funds, now held by Norfolk Community Foundation, to support the Council s key priorities. In recent years there was a growing awareness that a large amount of money was trapped within Dormant Trusts and that reviving them could provide a benefit to the community RESOLVED: That Policy and Resources Committee, as the Trustees for the following Dormant Trusts, agree that:
8 1. Norfolk Youth Parliament allocate the Education Dormant Trusts, held by Norfolk Community Foundation in the Norfolk Children s Fund, along with the remaining funds in the Youth Innovation Fund. In 2016/17, total 16, The Acting Adult Social Services Executive Director set up a Fund Panel to allocate all funds held in the Norfolk Community Services Fund. In 2016/17, total 56, In both funds, Committee support the flexibility in the allocation, to include donor led grants as well as through an application process. 4. The Acting Adult Social Services Executive Director identify opportunities to influence the allocation of funds (from the match funding), managed by NORSE, to support adult social care priorities. Section B Items for Report 15 Decisions Taken Under Delegated Authority 15.1 The annexed report (15) by the Managing Director was received RESOLVED: That the Policy and Resources Committee note the report. 16 Feedback from Members serving on Outside Bodies 16.1 No verbal update reports were received. The meeting concluded at 1.15 pm Chairman Appendix to Policy and Resources Committee minutes of 31 October 2016 Public question from Mr Andrew Wiltshire: Last months, papers revealed an over-spend of more than 40m caused by the last budget. What are the leaders of the council doing to deal with this black hole? Answer: The Council s forecast overspend as reported to Policy and Resources Committee amounts to m at the end of August This reflects the planned use of m of reserves, anticipated during budget planning (this total
9 includes use of the Business Risk Reserve to support Adult Social Care cost pressures). The use of reserves forms part of the Council s annual budget-setting process, and is closely monitored. Chief Officers have responsibility for managing their budgets within the amounts approved by County Council and it is up to the members of each individual committee to ensure the robust management of budgets within their area of responsibility. Chief Officers have been charged with reviewing all of their cost centres to ensure that, where an over-spend is identified, action is taken to ensure that a balanced budget is achieved for the year. The following recommendations from individual committees can be found in the Finance Monitoring report (item 8 on this agenda): In Adult Social Care: Plans to reduce the number of Care Act assessments required (Adult Social Care), improvements to the service transition between Children s and Adult Social Services, and improvements to triage and consistency of practice; In Children s Services: Improved panel procedures for looked after children, vacancy management, and other saving options; and In Resources: vacancy management and cost control, along with capitalisation of activity where it relates to the capital programme. Appendix to Policy and Resources Committee minutes of 31 October 2016 detailed questioned and answers Cllr Roper request for Members to have sight of monthly monitoring when available. Note for minutes from the Executive Director of Finance: The forecasts reported to P&R are based on detailed cost centre level data supplied by responsible budget officers after the end of each financial period. Moderation by chief officers is completed approximately days after each month end. These forecasts form the basis of finance reports over the service committee reporting cycle, and the forecasts in the P&R reports are consistent with the most recent service committee reports. As such the latest information is reported to members in Committee papers as soon as possible. As the Committee meeting timetable is not aligned with a monthly schedule, there is a risk that issuing the latest (potentially unmoderated) figures could cause considerable confusion because they would be likely to relate to a different period than that being discussed in the current Committee cycle. At the meeting, a member queried whether the overspend of 0.719k on Post 16 FE High Needs shown on page 36 of the P&R agenda represented the whole of the DSG High Needs variance. The following note from the Executive Director of Finance summarises the position of the DSG High Needs overspend. The overspend of 0.719k on Post 16 FE High Needs identified by the member represents the period five movement only. The total DSG over/underspend amounts to 2.828m. This is made up of: Independent and non-maintained education 2.248m overspend (High needs block)
10 Post 16 FE High Needs 0.719m overspend (High needs block) Suspended school staff m underspend (Schools block) School staff maternity 0.060m overspend (Schools block) These amounts also appear in the P&R report on page 36. The figures presented to P&R agree with those reported to the October Children s Services Committee. The 2.828m overspend is after the use of 2.000m agreed budgeted dedicated school grant reserves. The implication for , as at period five, is an overspend of at least 4.828m, if no action is taken. Options were discussed at the Schools Forum meeting of 14 th October It was agreed to consult with schools in November 2016 on an alternative use of the high needs block of the DSG, to ensure that extra commitments are funded within monies available. At the meeting a member asked for the timescale for the Adults Transport review The Executive Director of Finance advises that the transport review work will report back to Adult Social Care Committee on 23 rd January 2017.
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