The Director of Finance presented an update in relation to the projected budgets for 2011/2012 and 2012/2013, taking into account the Spending Review presented on 20 October 2010 and the provisional Local Government Finance Settlement, presented to the Cabinet on 13 January 2011 (minute 276 refers). He reported upon the various assumptions which underpinned the projections and commented upon negotiations that had taken place on a number of specific grants. The Director reported that HM Treasury had presented the Spending Review on 20 October 2010 and the Department for Communities and Local Government (DCLG) had indicated a reduction in Government Grants equal to 7.1% per annum for 2011/2015. Subsequently, the DCLG had indicated that the reduction would be front loaded. He set out also the latest position in relation to balances and savings agreed by the Cabinet and reported a projected surplus of £3.3m for 2011/2012 and a projected shortfall of £26.5m for 2012/2013.

In response to a comment from a Member, the Director confirmed that, in addition to a general grant reduction of £41m, the Government had announced a further reduction of £11m in specific grants.

It was moved by Councillor P Davies and seconded by Councillor B Kenny –

“(1) That this Committee recognises the difficult financial challenges faced by the Council.

(2) That Committee notes that Wirral Council will lose over £52m in the form of central government funding in 2011/2012, which will impact on the Council’s ability to deliver high quality services.

(3) That the Cabinet be requested to make vigorous representations to the Government, to reconsider the scale of savings which Wirral is being asked to achieve, given the level of need in Wirral which must be met”.

The following amendment, as an addendum to Councillor Davies’ substantive motion, was moved by Councillor P Gilchrist and seconded by Councillor P Davies –

“That this Committee recognises the considerable difficulties facing this and other local authorities. It considers that the Local Government Association (LGA) and the Government must assess the consequences of front loading and recognise that, without dialogue and a deeper understanding, the ability of local Councils to deliver services and respond to the localism agenda can only be compromised”.

The amendment was put and carried (6:5) on the Chair’s casting vote.

Resolved (6:5) (Councillors Brighouse, Kearney, Keeley, McCubbin and Williams voting against) –

(1)  That this Committee recognises the difficult financial challenges faced by the Council.

(2)  That Committee notes that Wirral Council will lose over £52m in the form of central government funding in 2011/2012, which will impact on the Council’s ability to deliver high quality services.

(3)  That the Cabinet be requested to make vigorous representations to the Government, to reconsider the scale of savings which Wirral is being asked to achieve, given the level of need in Wirral which must be met.

(4)  That this Committee recognises the considerable difficulties facing this and other local authorities. It considers that the Local Government Association (LGA) and the Government must assess the consequences of front loading and recognise that, without dialogue and a deeper understanding, the ability of local Councils to deliver services and respond to the localism agenda can only be compromised.