The members of the Cabinet are invited to consider whether they have a personal or prejudicial interest in connection with any of the items on this agenda and, if so, to declare it and state the nature of such interest.

Councillor J Green declared a personal interest in respect of Minute No. 328 - Schools Budget - by virtue of his wife being a Wirral teacher.

The minutes of the last meeting have been printed and published.  Any matters called in will be reported at the meeting.

RECOMMENDATION:  That the minutes be approved and adopted.

RESOLVED -

That the Minutes of the meeting of the Cabinet held on 3 February 2011 be confirmed as a correct record.

The Director of Finance presented the draft revenue estimates for 2011/12.  A decision was required to enable recommendations to be made to the Council concerning the budget and Council Tax for 2011/12. 

Councillor J Green in moving the Cabinet’s Budget Proposal for 2011/12 reported as follows:

“This is a time of huge change, challenge and opportunity. We all recognise that the national debt crisis has had a significant impact on the way that everyone who delivers public services will do business in the future. Wirral Council has risen to the challenge and put in place changes that have led to a stronger, more open and honest Council delivering better services.

Every pound the Council spends running itself is a pound not available to spend on residents priorities. Wirral residents said they wanted us to reduce management costs and we have made good progress in this area, repairing and driving forward the Strategic Change Programme and examining every area of Council business to make sure that we are making the best use of every resource available to us. This has included reducing absence amongst staff, reducing costly office accommodation and cutting our administrative burden. We have reduced the number of Senior Managers we employ by a quarter - to date we have cut management costs saving £13.6 million over the next five years.

Our focus on driving down the cost of running the Council has enabled us to produce a budget that protects delivery of services on the ground. By reducing management costs and what we spend on administration we have been able to ensure we continue to deliver the services that matter the most.  In addition it has enabled us to invest further where necessary to protect those who are most vulnerable in our society.

Jobs matter and the prudent steps we have taken will ensure that we can continue to support our local employers to create job opportunities, particularly for our young people to rebalance our local economy for the benefit of families in every part of Wirral.

The successful implementation of the budget and policy strategy laid out immediately following the formation of our Administration has ensured that we have avoided the crisis management seen in other local authorities and have delivered a 0% rise in the Council Tax for Wirral residents. We also recognise the burden that would be placed on those with modest fixed incomes by a rise in Council Tax and we have therefore maintained Council tax relief for over 75s ensuring that no Wirral resident will see their Council Tax rise this coming year.

Cutting the cost of Council administration

Through our commitment to making every pound of the public’s money matter we note that the following savings have been identified:

Savings previously agreed by Council

The Administration has continued to examine all reserves and departmental budgets  ...  view the full minutes text for item 327.

The Interim Director of Children’s Services presented a report which recommended the approval of the Schools Budget for 2011/12.  He explained that the budget required a number of changes to the Local Management of School Funding Formula and a new Early Years Single Funding Formula.  Reports on these areas had been presented to the Schools Forum on 25 January 2011 and the resolutions were attached as Appendix 1 to the report.  The Schools Forum reports were available on the Council’s intranet for Members’ information.

Councillor S Clarke in endorsing the Schools Budget thanked Wirral Schools for the approach they had adopted to the process.  She welcomed the pupil premium which maximised resources for Wirral.

Councillor J Green seconded the Motion and placed on record the Cabinet’s thanks to all staff, and in particular, Julia Hassall, Head of Branch (Children's Social Care) (who had delayed having an operation to assist with the drafting of the budget) for all of their hard work in relation to the budgetary process.  Members were pleased to note that Ms Hassall was now making a speedy recovery.

RESOLVED - That

(1)  taking account of the views of the Schools Forum:

  -  the Schools Budget is approved at the sum of £229,403.700;

  -  the DSG reserve of £742, 025 is used to meet backdated harmonisation costs in schools;

  -  the Excess Balance Reserve of £136,934 is also used for this purpose;

  -  the increase in contributions to combined budgets including Harmonisation back pay £450,000, Local Children’s Safeguarding Board £6,000, School Sports Partnership £25,000 and Discretionary Rate Relief £270,000 are noted;

  -  the budget for schools includes provision for pay harmonisation “going forward” for support staff totalling £1,057,000;

(2)  changes to the local funding formula are agreed for:

  -  grants estimated at £32.2 million, which are to be consolidated into the formula using the previous grant make up and the latest data available;

  -  an Early Years Single Funding Formula be introduced from 1 April 2011 using a single base rate for all providers together with a number of specific supplements for deprivation, quality, flexibility and a headteacher supplement (for Nursery Schools only);

  -  that the operation of the formula be reviewed during 2011/12; and

(3)  the Cabinet notes that in the settlement for 2011/12 there is no increase (or decrease) in school funding per pupil.  The Administration particularly welcomes the £5 million contribution to the Schools Budget from the Coalition Government’s pupil premium.

A report by the Director of Finance set out the Treasury Management and Investment Strategy for 2011 - 2014 in accordance with the CIPFA Code of Practice for Treasury Management in Public Services.

RESOLVED – That

(1)  the Treasury Management and Investment Strategy for 2011 to 2014 be approved;

(2)  the Prudential Indicators be adopted;

(3)  the Minimum Revenue Provision policy be approved;

(4)  the following Council Officers listed in Appendix D of the Strategy Statement, be authorised to approve payments from Council bank accounts for all treasury management activities;

  Director of Finance   - Ian E. Coleman

  Deputy Director of Finance   - David L.H. Taylor-Smith

  Head of ICT   - Vacant

  Head of Benefits,

  Revenue and Customer Services   - Malcolm J. Flanagan

  Head of Financial Services   - Thomas W. Sault

  Head of Support Services  - Vacant

  Chief Accountant   - Peter J. Molyneux

  Chief Accountant   - Robert D. Neeld

  Chief Accountant   - Jenny Spick.

A report by the Director of Finance provided the Cabinet with the further information requested at the meeting on 9 December 2010 when the report on Capital Programme and Financing 2011-2015 was considered.

Councillor S Holbrook informed that he appreciated the work that had gone in to producing the report.  He noted the fact that the Council would be investing in Wallasey Town Hall which would allow more staff to work there, so increasing the use of the building and contributing to the accommodation strategy.

Councillor J Green informed that the Council’s Capital Programme was a very important strategic tool that would be used to improve facilities to match the Wirral’s Future Consultation.

RESOLVED - That

(1)  the revised proposals for the Wallasey Town Hall and Wallasey Annexes schemes be reflected in the Capital Programme;

(2)  an additional investment of £1.1 million in Transport schemes be included within the Capital Programme for 2011/12;

(3)  the capitalisation of £3.42 million of statutory redundancy costs be included within the Capital Programme for 2010/11; and

(4)  the Capital Programme 2011-2013 and capital financing, as now presented, be agreed and incorporated within the Council Budget for 2011/12.

A report by the Director of Law, HR and Asset Management advised the Cabinet that reducing Wirral’s carbon footprint was a key priority for the Council and that the Council was committed to its pledge to deliver a 60% reduction by 2025. In order to ensure this was met the Council had produced a Carbon Budget to measure the progress that had made.

Each Council service had been given an ‘allowance’ of CO2 to operate and deliver their services. Its purpose was to provide a clear picture of the environmental impact of the Council’s energy use, which would help it meet its carbon reduction targets.

The report provided an interim Carbon Budget for 2011 - 12, as requested by Cabinet on the 22 February 2010, (Minute No. 335 refers). Councillor G Gardiner informed that its ‘Interim’ status reflected the fact that significant changes to Council structures and services were currently being considered that would have a significant positive impact over the coming months. The Carbon Budget would therefore be revised to reflect any changes that were made and published in April 2011.

RESOLVED:  That

(1)  the actions (contained within Appendix B, the Carbon Budget Impact Statement) to implement the Council’s interim Carbon Budget for 2011-12 be noted and endorsed;

(2)  a further report be presented to Cabinet detailing the revisions to the Carbon Budget in April 2011;

(3)  the proposed investment of £2.8m in solar energy in (included in its amendment to the Capital Programme) which will generate CO2 savings of around 400 tonnes per annum be noted, and this be taken into account when producing the further report for the Cabinet’s consideration at its meeting in April 2011;

(4)  the Merseyside Pension Fund be requested to give consideration to implementing carbon budgeting as part of its normal business activities;

(5)  an appropriate evaluation model for quantifying CO2 emissions as part of the procurement process for new Council contracts and other spend be developed by the Director of Finance and a report be brought back to the Cabinet at the earliest opportunity;

(6)  the progress on reducing CO2 emissions be included in the regular performance monitoring reports which are brought to the Cabinet and other Committees; and

(7)  a briefing be arranged in the next Municipal Year as part of the Members’ Training and Development Programme on the ethos of a Carbon Budget.

A report by Director of Law, HR and Asset Management reminded Members that Standing Order No.13 provided that he

“shall, prior to the Budget meeting of the Council, consult with the Leaders of each political group and submit to the Cabinet and Council a suggested procedure to be adopted at the budget meeting, but if no such procedure is adopted the normal procedures of the Council in relation to amendments to Cabinet recommendations will apply”.

The Director informed that the Budget meeting was clearly different from Ordinary meetings and, therefore, the procedure proposed was based largely on that used since 2008, the relevant sections of the Constitution and one or two suggestions made in the light of comments made in previous years.  He made reference to his report and apologised for an error on Page 96.  He corrected the line which read:

  “The first vote on the Administration’s budget, and if it falls….. “

as follows:

  “The first vote on the Labour Group’s budget, and if it falls…..”

The Director also drew the Cabinet’s attention to the three Special Overview and Scrutiny Committee meetings that would be held on three consecutive evenings during the current week.  In the light of this, the Labour Group had requested that the deadline for receipt of its Budget Proposals be extended to 12 Noon on Friday, 25 February 2011.

RESOLVED - That

(1)  the Budget Council Procedure as amended above be approved; and

(2)  the Labour Group’s request that the deadline for receipt of its Budget Proposals be extended to 12 Noon on Friday, 25 February 2011 be agreed.

RESOLVED:

That, under section 100 (A) (4) of the Local Government Act 1972, the public be excluded from the meeting during consideration of the following items of business on the grounds that they involve the likely disclosure of exempt information as defined by the relevant paragraphs of Part I of Schedule 12A (as amended) to that Act. The Public Interest test has been applied and favours exclusion.

A report by the Director of Law, HR and Asset Management sought approval of terms for the occupation by the Department of Adult Social Care of part of Old Market House, Birkenhead.

The Director informed that the recommended course of action supported the strategic objectives of improving health and wellbeing for all by re-providing appropriate accommodation for the core headquarters team of the department.  It also supported the objective of creating an excellent Council by facilitating the sale of Westminster House and a consequent overall reduction in accommodation costs.  It was noted that occupying space within Old Market House would incur annual revenue costs.  These would however be more than covered by annual savings in accommodation costs made from the sale of Westminster House.  Entering into the proposed agreement was not a statutory duty.  An exempt appendix to the report contained information that was not for publication under paragraph 3 of part 1 ofSchedule 12A of the Local Government Act 1972.  This information would remain confidential because it explained the current position reached in negotiations which had yet to be concluded between the Council and a third party, where a particular course of action was recommended. It also contained financial information relating to the affairs of the third party.

Councillor S Holbrook informed that because of the urgency of this matter, he as the relevant Portfolio Holder, had asked for the decision to be made by the Cabinet this evening rather than by him, under his delegated powers, at a later date.

The Director requested that because of the urgent need to enter into the proposed agreement call-in be waived.  The Interim Chief Executive indicated his agreement to this request.

RESOLVED - That

(1)  the terms proposed within this report, for the Council to occupy accommodation within Old Market House, Birkenhead, are agreed and the Director of Law, HR and Asset Management is authorised to complete the necessary documentation; and

(2)  the call-in procedure in respect of this matter be waived in view of the urgent need to enter into the agreement.

Further to Minute No. 333 above, the Cabinet considered the appendix to the report on the agenda for the meeting that contained exempt information that, if disclosed, may provide information relating to the financial/business affairs of a third party.

RESOLVED:

That the contents of the Appendix containing exempt information that cannot be considered in the presence of the press and public be noted.