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.

All Cabinet Members who were also School Governors declared non-pecuniary interests in Item No. 12 – Schools Budget 2013/14.

Councillor P Hackett declared a non-pecuniary interest in Item 4(c) – Families and Wellbeing (Budget Options Report) as a member of his family was in a residential home.

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 7 February 2013 be confirmed as a correct record.

.

A report by the Chief Executive set out a three year Corporate Plan for the Cabinet’s consideration.  The proposed priorities detailed in this Plan had been based on the “What Really Matters” consultation programme and provided a framework for delivering savings during 2013/2014.

RESOLVED:

That the Corporate Plan be approved and referred to the Council meeting scheduled for 5 March 2013 for adoption.

The minutes of the special meetings of the five themed Overview and Scrutiny Committees which considered the results of the budget consultation are attached for the Cabinet’s consideration.

The Cabinet received copies of the Minutes of meetings of the five themed Overview and Scrutiny Committee meetings which had considered the results of the budget consultation as follows and noted their contents:

·  Children and Young People – held on 12 February 2013 (Minute No. 64 refers);

·  Council Excellence – held on 14 February 2013 (Minute No. 70 refers);

·  Economy and Regeneration – held on 12 February 2013 (Minute No. 52 refers);

·  Health and Well Being – held on 12 February 2013; and

·  Sustainable Communities – held on 14 February 2013.

RESOLVED: That

(1)  Overview and Scrutiny Committee be thanked for their comments; and

(2)  all members of the public who took part in the consultation exercise be thanked for their contributions.

Appendix One: Workforce Conditions of Service

A report by the Chief Executive documented progress made in relation to the implementation of the Council’s consultation programme “What Really Matters” which it had initiated at its meeting in June 2012.

The report presented budget options for the Cabinet’s recommendation to the Council. These options formed part of the strategic directorate of Transformation and Resources and as such fell under the management of the Finance Department, Department of Law, HR and Asset Management, and Chief Executive’s Department.

These options had been subject to comprehensive and robust public, staff, service user and partner consultation, the results of which had been reported to the Cabinet at its meeting on 7 February 2013 (Minute No. 184 refers).  The Cabinet was also referred to all reports and minutes relating to these budget options as referred to in Subject History.

RESOLVED: That

(1)  the principles upon which the budget options have been developed be noted;

(2)  recommendations on which budget options should be accepted as savings be made to the Council, in the context of the Council being required to find savings of £109 million over the next three years.

A report by the Chief Executive documented progress made in relation to the implementation of the Council’s consultation programme “What Really Matters” which it had initiated at its meeting in June 2012.

The report presented budget options for the Cabinet’s recommendation to the Council. These options formed part of the strategic directorate of Regeneration and Environment, and as such fell under the management of the Department of Regeneration, Housing and Planning and the Technical Services Department.

These options had been subject to comprehensive and robust public, staff, service user and partner consultation, the results of which had been reported to the Cabinet at its meeting on 7 February 2013 (Minute No. 184 refers).  The Cabinet was also referred to all reports and minutes relating to these budget options as referred to in Subject History.

RESOLVED: That

(1)  the principles upon which the budget options have been developed be noted;

(2)  recommendations on which budget options should be accepted as savings be made to the Council, in the context of the Council being required to find savings of £109 million over the next three years.

Appendix One:  Community Meals

Appendix Two: Assistive Technology

Appendix Three: Charging for Non Residential Services

Appendix Four: Residential and Respite Care

Appendix Five: Day Care and Day Services Transformation

Appendix Six: Support for Carers

Appendix Seven: Transport Policies

Appendix Eight: Youth and Play Services

Appendix Nine: Children’s Centres and Sure Start

A report by the Chief Executive documented progress made in relation to the implementation of the Council’s consultation programme “What Really Matters” which it had initiated at its meeting in June 2012.

The report presented budget options for the Cabinet’s recommendation to the Council. These options formed part of the strategic directorate of Families and Wellbeing, and as such fell under the management of the Department of Adult Social Services and the Children and Young People’s Department.

These options had been subject to comprehensive and robust public, staff, service user and partner consultation, the results of which had been reported to the Cabinet at its meeting on 7 February 2013 (Minute No. 184 refers).  The Cabinet was also referred to all reports and minutes relating to these budget options as referred to in Subject History.

RESOLVED: That

(1)  the principles upon which the budget options have been developed be noted;

(2)  recommendations on which budget options should be accepted as savings be made to the Council, in the context of the Council being required to find savings of £109 million over the next three years.

A report by the Interim Director of Finance reviewed the recommended level of general fund balances for 2013/14 that had been agreed by the Cabinet at its meeting on 29 November 2012 on a risk basis, in the light of budgetary developments since then (Minute No. 135 refers).

RESOLVED: That

(1)  it be agreed that the level of general fund balances recommended be based on a locally determined approach to the assessment of the financial risks that the Council may face in the future; and

(2)  it be agreed that the Council maintains its level of balances at or above the locally determined level of general fund balances. 

A report by the Interim Director of Finance provided the proposed Budget for 2013/14 and the projections for 2014/15 and 2015/16.  The Council had agreed the Council Tax Base for 2013/14 at its meeting on 28 January 2013 (Minute No. 98 refers). 

The Budget Council meeting was scheduled for 5 March 2013.  The Cabinet noted that the Council had to agree a Budget and set the level of Council Tax for 2013/14 by 10 March 2013.

Appended to the Interim Director’s report were four Appendices as follows:

• Appendix 1 – The Council’s Budget Projections for 2013/16
• Appendix 2 – An Under Budgeting Report
• Appendix 3 – Growth Submissions 2013/15
• Appendix 4 – Savings Proposed by the Chief Executive still to be Approved by the Cabinet/Council

Councillor P Davies introduced the Interim Director’s report and moved the Cabinet’s Budget proposals informing that the Cabinet’s Budget recommendations were the most challenging ever for the Authority.  It was being set against a background of unprecedented cuts in funding from the coalition Government, and required the Council to find savings of £109 million by 2016. This amounted to one-third of the Council’s total net budget.  The savings recommended total was around £42 million for the next year (2013/14).

Councillor P Davies reported as follows:

“While a small proportion of the budget challenge we face has been caused by financial mismanagement of the past, it is the disgraceful settlement Wirral has received from the coalition Government that has made cuts to services unavoidable. I did not come into politics to make cuts to vital local services, however, I have a duty as Council Leader to both set a legal budget and to protect, as far as possible, those who I was elected to serve.

I have been very clear that those with the broadest shoulders must bear the greatest burden which is why this budget begins with reducing the costs of running the Council.  We have cut senior management, procurement, marketing, IT and the costs of our buildings.  We have also worked closely with the Trade Unions to reduce the cost of some of our Terms and Conditions while remaining a Living Wage employer. Councillors must also make difficult choices and I firmly believe that it is right to save £275,000 by holding elections once every four years and reviewing the number of meetings and committees held.

My key priority for this budget for 2013/14 has been to protect front-line services and the most vulnerable members of society in Wirral as far as we are able. I have today announced that:-

No Children’s Centre, Library or One Stop Shop will close

Pensioners will continue to receive a discount on their Council Tax bills and £100,000 will be invested in enhanced advice services to mitigate the impact of benefit cuts

Additional funding of £5m will be invested in vulnerable families and we will ensure support for victims of domestic violence continues

£1m of capital funding will be invested in a new state-of-the art Youth Zone and  ...  view the full minutes text for item 202.

A report by the Interim Director of Finance informed that under Section 25 of the Local Government Act 2003, the Council’s Chief Financial Officer (Director of Resources) was required to report on the robustness of the estimates made for the purposes of the Council’s budget calculations and the adequacy of the adequacy of the General Fund balances and reserves. 

The Cabinet noted that Budget estimates were exactly that, being estimates of spend and income made at a point in time. The Statement about the robustness of estimates could not give a guaranteed assurance about the Budget, but gave reasonable assurances that the budget had been based on the best available information and assumptions.

In order to meet the requirement on robustness a number of key processes had been put into place, including:

·  the issuing of clear guidance on preparing budget growth and savings options for the three year period 2013/16;

·  peer review by finance staff involved in preparing the standstill [base] budget i.e. the existing budget plus inflation;

·  the use of budget monitoring, and the bad budget review, in 2012/13 in order to re-align budgets with current demand, for 2013/14 and future years;

·  a review by the Management Team, supported by a series of officer challenge sessions, of proposed savings and their achievability;

·  a Member review and challenge of each proposal through the Overview and Scrutiny Committees and the Cabinet;

·  the Chief Financial Officer providing advice throughout the process on robustness, including inflationary factors, avoiding unallocated savings and reflecting current demand and service standards (unless standards and eligibility are to be changed through a change in policy); and

·  extensive consultation with the public and various groups including the business community and voluntary sector.

Notwithstanding these arrangements, which were designed to test the Budget throughout its various stages of development, considerable reliance had been placed on Managers having proper arrangements in place to identify issues, project demand for services, and consider value for money and efficiency.

A key part of improving these processes was to develop data and information to monitor service volume and unit costs and track changes in both. This would also assist in the Council’s Medium Term Strategy Planning.

RESOLVED:

That the statement of the Chief Financial Officer be noted.

A report by the Interim Director of Finance provided the Cabinet with Capital Programme bids for 2013/16 for its consideration and referral to the Council for approval.  It also included the related capital financing requirements based upon the prudential indicators that inform the Treasury Management Strategy.

The report referred to schemes carried forward into 2013/16 from the current 2012/13 Capital Programme, as detailed in the Capital Programme Monitoring Report for Period 8 which was considered by the Cabinet at its meeting on 24 January 2013 (Minute No. 164 refers).

The Cabinet noted that the size and shape of the Capital Programme would be dictated by the Government’s announcements on supported programmes and, affordability.  The Council’s 2013/16 revenue budgets would severely limit the scope for unsupported capital expenditure (that generated revenue costs) to schemes that generated immediate revenue savings.

The Cabinet also noted that Capital Receipts would be consumed by Redundancy and Equal Pay costs and, initially, would be unavailable to support the Capital Programme, as had been the case in the past.  As new capital receipts were generated, schemes that were held up could be released.

Schemes that would otherwise proceed, but could not, due to a shortage of revenue funds and Capital receipts, were corralled into a section for release when revenue funding or/and Capital receipts, became available.  The guiding thought was that such schemes would be delayed for at least a year.

RESOLVED: That

(1)  the 2013-16 Capital Programme, set out in the report in Table 4 and detailed in Annex 8 to the report be agreed and referred to Council for approval;

(2)  ‘spend to save’ and ‘schemes to generate capital receipts’ be reviewed in detail, prior to being specifically approved by the Cabinet for implementation;

(3)  the capital financing requirements be reflected in the projected revenue budget and the 2013/16 Medium Term Financial Strategy; and

(4)  the Prudential Indicators be noted and reported to the Cabinet as part of the Treasury Management Strategy.

A report by the Interim Director of Finance set out the revenue position for 2012/13 as at Month 9 (December 2012).  It identified the latest financial projections and prioritised the risks for ongoing management actions, to ensure any year end overspend was minimised.

RESOLVED: That

(1)  it be noted that at Month 9 (December 2012), the full year forecast projects a potential General Fund overspend of £7.9m;

(2)  it be noted that there are no rejected freeze items in the month; and

(3)  it be noted that

·  a major risk continues to exist concerning the reliability of fees and charges income, going back many years. 

·  corrective action is being taken to maximise recovery; and

·  as better information becomes available, there will be further reports regarding this serious matter. 

A report by the Interim Director of Finance informed the Cabinet of the current position regarding the Council’s 2012/13 to 2014/15 Capital Programme.  The report reflected:

• the re-profiled 2012/13 Capital Programme budget which incorporates previous decisions made by Cabinet to amend the programme;
• the expenditure to date, which continues to be less than it should be;
• the request for a revision to the Capital Programme to reflect slippage of £1.451 million of schemes into the 2013/14 Financial Year.  In addition the Cabinet meeting on 20 December 2012 approved slippage of £0.515m for the New Brighton Environmental Improvement scheme (Minute No. 147 refers);
• the request for an increase in the Capital Programme of £0.675 million for schemes requiring no unsupported borrowing;
• a reduction in the estimated grant for Mersey Heartlands Growth Point of £0.585 million;
• the projected outturn figures for 2012/13, which suggests an underspend of £5.103 million on the revised Capital Programme; and
• the current funding of the Capital Programme and its future affordability.

Councillor P Davies referred to section 2 of the report and requested that Officers provide an update on the slippage of schemes in the Capital Programme.  As Officers were unable to provide this at the meeting they agreed to ensure Councillor P Davies received a written response.

RESOLVED: That

(1)  the revised Capital Programme of £47.301 million be agreed;

(2)  the additional slippage in the programme of £1.451 million from 2012/13 to 2013/14 be agreed;

(3)  the following increases to the programme which have resulted from additional grant allocations be agreed:

·  Disabled facilities £0.439 million;

·  Cosy Homes heating £0.046 million; and

·  Outdoor gyms in parks £0.180 million.

(4)  the spend to date at Month 9 of £23.152 million, which represents 48.9% of the revised Capital Budget, with 75% of the Financial Year having elapsed be noted;

(5)  the work of the Capital Steering Group to detail the schedule of sites to validate the estimate of capital receipts be noted; and

(6)  Councillor P Davies be provided to a written reply in answer to his enquiry on the slippage of schemes in the Capital Programme.

A report by the Interim Director of Finance set out the Medium Term Financial Strategy 2013-2016.  The Cabinet noted that it was a strategic, financial document that set out the Council’s financial approach for the planning period 2013/14 to 2015/16.  It also incorporated the Treasury Management and Investment Strategy for 2013/2016 in accordance with the CIPFA Code of Practice for Treasury Management in Public Services. 

RESOLVED: That

(1)  the Treasury Management and Investment Strategy for 2013/2016 be approved;

(2)  the Prudential Indicators be adopted;

(3)  the Council’s Minimum Revenue Provision Policy be approved;

(4)  those Council Officers listed within Appendix F to the report on the Treasury Management and Investment Strategy Statement, be authorised to approve payments from the Council’s bank accounts for all treasury management activities;

(5)  the Medium Term Financial Strategy be approved; and

(6)  regular updates  on the Medium Term Financial Strategy be reported to the Cabinet.

A report by the Acting Director of Children’s Services recommended the Cabinet to approve a Schools Budget for 2013/14 of £236,732,400 for maintained schools and academies in Wirral.  As well as the funding of a further £250,000 of Schools Planned Programmed Maintenance from Dedicated Schools Grant (DSG).  The report included some minor changes to the Early Years Single Funding Formula.  Reports on these areas were presented to a meeting of the Schools Forum on 23 January 2013.

Councillor P Davies, on behalf of the Cabinet, thanked all of the staff in the Children and Young People’s Department who had helped to put the Budget together for their hard work.

RESOLVED: That taking account of the Schools Forum:

(1)  the DSG funded Schools Budget for maintained schools and academies be approved at the sum of £236,732,400;

(2)  the headroom of £333,400 be allocated within the formula to all schools;

(3)  the High Needs Contingency totalling £880,200 be agreed;

(4)  a further £250,000 of PPM included in the Schools Budget be funded from DSG;

(5)  the contributions to combined budgets be approved; and

(6)  the changes to the Early Years Single Funding Formula be agreed.

A report by the Director of Law, HR and Asset Management advised Members of the corporate and departmental progress made against the Carbon Budget 2012/13.  Attached as Appendix A to the Director’s report was the Carbon Budget Performance Timetable for Local Authority buildings which informed of the revisions that were required to meet the Corporate Goals and proposed the Carbon Budget for 2013/14, 2014/15 and 2015/16.

The Cabinet was reminded that Members had requested that a Carbon Budget be established at the Council meeting on 14 December 2009 (Minute No. 77 refers).  The resolution had included instructions to prepare carbon budgets for each Department to be presented at the Budget Cabinet meeting and the Budget Council meeting, alongside the Council’s Financial Budget.

Councillor B Kenny confirmed that the Carbon Budget was not a statutory requirement but was the Council’s only method of managing CO₂ emissions in order to reduce its carbon footprint by delivering the Carbon Budget as stated in its Corporate Plan.

The carbon budget was not financial but meeting the annual targets would have an impact on costs.  Reductions in carbon emissions were achieved by reducing energy use and there were financial savings that would be made from the avoided costs of energy and Carbon Reduction Energy Efficiency Scheme (CRCEES) allowances.

RESOLVED: That

(1)  progress towards the 2013/13 target included in Appendix A to the report be noted;

(2)  the Carbon Budget for 2013/14 included in Appendix A to the report be approved;

(3)  the current Carbon Budget method be applied until the impacts of the simplification of the CRCEES are assessed and that Officers be instructed to report further to Members to make recommended alterations as a result of the simplification process;

(4)  Corporate targets for 2013/14, 2014/15 and 2015/16 proposed in Section 2.2.4 of the report be approved; and

(5)  managers be directed to ensure that Carbon Reduction Implications of projects and initiatives are assessed and reported as required by the standards report template.  Impacts must be reported to the Sustainability Unit to support the carbon management process.

A report by the Interim Director of Technical Services informed that in the next spending review the Department for Transport (DfT) was proposing to devolve funding for major transport schemes to local areas.  This necessitated the establishment of a Local Transport Body (LTB) to oversee the process, guided by an Assurance Framework, which was to be agreed by the DfT in respect of the governance and management arrangements of the LTB. 

Councillor H Smith introduced the report and informed that the DfT had proposed a significant change in the way major transport scheme funding was to be allocated.  Currently Central Government had to approve all schemes over £5m.  The Government was proposing that from 2015 local transport bodies were established, essentially to take over the decision making role of the DfT with regard to major scheme funding, and would be able to decide how to spend the money on priorities that best suited their local needs, without Whitehall approval.  The City Region Cabinet, the Local Enterprise Partnership (LEP) and the Integrated Transport Authority had agreed that the LTB would cover the established City Region geography.  The Cabinet noted that £35.5million, with a contingency of +/- 33%, had been allocated to the Liverpool City Region (LCR) LTB over a four year period from 2015/16.

The Interim Director’s report set out the requirements that the DfT had made with regard to the devolution process, as although it was devolving funding decisions to the LTB, it still required established DfT processes and methodologies to be followed.

The Interim Director’s report asked the Cabinet to note the progress made to date on the development of the LTB, and consider and endorse the draft Assurance Framework because this Assurance Framework was required in order for the LTB to be formally constituted and to establish its powers.  This document had to be submitted to the DfT by the end of February 2013, and therefore, due to the short timescales, agreement was being sought for the Chief Executive to be granted delegated authority to oversee this process and approve its submission. 

Appendix 1 to the report set out the draft of the Assurance Framework.  Councillor Smith directed Members to Section 5.2 of the report which summarised the main points.  Councillor Smith informed that this Framework was the subject of report across all City Region networks and constituent local authorities/organisations.

Councillor Smith reported that the LCR Cabinet had agreed, in principle, that the LTB would be composed of the Leaders and the Mayor of Liverpool City Council, the Chair of the ITA and the Chair of the LEP.  Wirral Council had been asked to nominate representatives and the Cabinet was asked to consider the nomination of the Leader of the Council as Wirral’s representative, and the Streetscene and Transport Services Portfolio Holder as the deputy, for appointment to the LTB.  Any nominations must be referred to Council for endorsement or otherwise. 

Councillor Smith also reported that the LTB would be advised via a Senior Officer body called the  ...  view the full minutes text for item 210.