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Maidstone Borough Council

 

Corporate Services Overview & Scrutiny Committee

 

Tuesday 1 November 2011

 

The Budget Strategy

 

 

Report of: Overview & Scrutiny Officer

 

1.          Introduction

 

1.1        The Corporate Services Overview and Scrutiny has within its terms of reference the scrutiny of the Council’s budget. Its review for 2011/12 ‘The Council as a Business?’  is focused on the financial restraints faced by the Council and the need for efficiency savings and innovation in terms of income generation.  At its meeting on 2 August 2011, the Committee resolved that a cross-party budget working group should be established to enable the Committee to become involved in the medium term financial strategy (MTFS) at an early stage.  It was felt that this would improve Member understanding and enable more constructive debate, seeking to help balance the council’s financial pressure with public acceptability.

 

1.2        Maidstone Borough Council has historically considered strategic budget issues at an early stage. As part of the development of the 2012/13 budget strategy and to enable balanced consideration of the MTFS with the revised strategic plan, there has been a short delay in the production of the initial budget strategy report this year.  This has allowed a revised focus on the council’s three key priorities in order to identify and prioritise actions to achieve the six outcomes that support the priorities. The MTFS and the strategic plan must be closely aligned to achieve maximum benefit. The three priorities and six outcomes set out in the strategic plan are:

 

a)   For Maidstone to have a growing economy

·         A transport network that supports the local economy

·         A growing economy with rising employment, catering for a range of skill sets to meet the demands of the local economy

b)   For Maidstone to be a decent place to live

·         Decent, affordable housing in the right places across a range of tenures

·         Continues to be a clean and attractive environment for people who live and visit the borough

c)   Corporate and customer excellence

·       Residents are not disadvantaged because of where         they live or who they are, vulnerable people are   assisted and the level of deprivation is reduced

·         The Council will continue to have value for money    services that residents are satisfied with

 

1.3        On 14 September 2011 Cabinet considered and reviewed the MTFS for 2012/13 along with developments and emerging issues that will affect the revenue and capital budget for 2012/13. This will provide draft assumptions that will develop the MTFS for 2012/13.

 

The following decision (Appendix A) was made:

 

·         That the strategic revenue projection that gives the most likely outcome for planning purposes be agreed.

·         That the level of council tax for planning purposes be agreed as 2.5% per annum over the period of the strategy.

·         That the extent of the capital programme and the current likely financing arrangements be noted.

·         That the outline proposals for consultation and delegation of the development of the final format and questions to the Head of Communications in consultation with the Leader of the Council be agreed.

 

2.          Recommendation

 

2.1        The Committee is recommended to consider the Budget Strategy 2012/13 and the ongoing forecast for the medium term. The Committee should consider ways in which the Budget Working Group can be utilised over the coming months to assist the Committee in their exploration and understanding of the Budget Strategy in order to make recommendations to Cabinet to be fed into the final budget strategy proposal early next year. The Committee should also consider the information contained in the Budget Strategy and consider how this could impact on its investigations as part of the Council as a Business? Review.

 

2.2        Members are also recommended to interview Paul Riley, Head of Finance and Customer and ask questions with regard to the Budget Strategy as they feel appropriate.  Potential areas for discussion include, but are not limited to:

 

·         The Medium Term Financial Strategy – is this suitably robust?;

·         Potential areas for savings/cuts;

·         Potential areas of expertise for income generation;

·         The Council’s long term ethos in respect of it’s service delivery;

·         The link to the Council’s 3 priority themes of:

o   For Maidstone to have a growing economy;

o   For Maidstone to be a decent place to live; and

o   Corporate and Customer Excellence;

·         The impact of the recession;

·         Public consultation; and

·         Potential Council Tax increases for 2012/13.

 

        

 

 

 

3.          Reasons for Recommendation

 

3.1                  The Corporate Services Overview and Scrutiny Committee has            responsibility for Budget Scrutiny as part of its remit.

 

3.2        A Budget Working group was appointed at the Committee’s      September meeting which has enabled the Committee to have   involvement at an early stage.

 

3.3     The Corporate Services Overview and Scrutiny Committee’s review     for 2011/12 is focused on the financial restraints faced by the     Council. The review, ‘The Council as a Business?’ will ‘explore the        financial restraints the Council face and establish how savings           and income could be generated in a more innovative manner.’ It        will seek to establish the following outcomes:

 

1. What does Maidstone Borough Council want to  be and what do our residents want from us, including identifying who our customers are and what their requirements are;

 

2. Establish what the Council perceives its core function to be now and in the future and what statutory services we must provide

 

3. Establish what funding  opportunities are available to the Council;

 

4. Identify the factors which are currently considered when savings are made and practical measures and actions for future savings and increasing revenue,  income and service improvement;

 

5. Establish where the Council sees itself in 4 years time;

 

6. Identify how the culture of Maidstone Borough Council can more business focussed; and

 

7. Focus on the following council services:

 

Ø  Planning

Ø  Print Function

Ø  Back office functions and productivity

Ø  Recycling

Ø  Building Surveying  

 

 

 

4.      Impact on Corporate Objectives

 

4.1     The Committee will consider reports that deliver against the     following Council priorities:

 

·       ‘Corporate and Customer Excellence’.

 

4.2     The Strategic Plan sets the Council’s key objectives for the medium   term and has a range of objectives which support the delivery of   the Council’s priorities.  The Committee’s work will contribute to the   delivery of these key objectives over the next year.