The Director of Finance reported that as part of the 2012/13 Budget Consultation process Cabinet were asking Scrutiny Committees to consider the functions within their portfolio and offer suggestions as to how to close the estimated £25 million budget gap and limit any Council Tax increase in 2012/13. The responses would be considered along with the responses from the other engagement processes to inform the budget setting process. Further consultation would be undertaken regarding any specific service changes.

The report had been coordinated by the Director of Finance and included the services within the departments of Finance and Law, HR and Asset Management, and services which provided the Council’s Corporate and Community Planning, Consultation, Engagement and Communications functions.

The Chair commented that it was for the Cabinet to come forward with specific budgetary proposals and only then would the Committee be in a position to scrutinise these.

Councillor Abbey suggested that it was incumbent on every elected Member to challenge officers that they were delivering on potential savings and that this Committee should try and identify any specific savings.

It was moved by the Chair and seconded by Councillor Hale –

“(1) That having regard to the Budget and Policy Framework Procedure Rules (as set out in the Constitution) this Scrutiny Committee is of the view that it will respond to the Cabinet’s proposals at the earliest opportunity.

(2) This Committee considers that it is the prime responsibility of Cabinet members to come forward with proposals for investigation, research or detailed study, in sufficient depth and in the detail required for Members to make informed decisions.

(3) In order for this to be thorough and constructive this Committee requests that proposals should be provided as soon as possible and available for Members to seek information and advice.

(4) This Committee will therefore consider setting a date for a special meeting to consider Cabinet led suggestions highlighting potential savings as soon as they are available.”

It was then moved as an amendment by Councillor Abbey and seconded by Councillor Doughty that -

“(1) This Committee recognises the difficulties caused by the severity of last year’s budget cuts and the speed with which they had to be implemented.

(2) Committee further recognises that some services are under considerable stress as a result.

(3) However, Committee believes it is imperative that no overspends are incurred on the 2011/12  budget and that the savings promised as part of that budget must be delivered, or replaced with alternative savings, if we are to avoid passing on the hole into the 2012/13 budget.

(4) Committee believes that, if this is not done, there is a real risk of destabilising the Council’s finances at a point where the Council needs maximum stability to enable it to face the serious challenges ahead, and accepts it has a very real role to play in the detailed and careful monitoring of spending in this year’s budget.

(5) Committee recognises that there is currently an overall projected budget gap of £25m for 2012/13, further gaps of £31m and £30.3m predicted for 2013/14 and 2014/15 and the potential for a further gap again of £60m if the localisation of business rates is implemented without any ongoing protection for authorities like Wirral with less ability to raise high levels of income from business rates.

(6) Committee welcomes the involvement of the public in the budget simulation exercise, and the high level of response, both as a way of ascertaining priorities and as an educational tool to demonstrate the kind of decisions that have to be taken in setting the Council’s budget.

(7) Committee believes that it should do everything it can to provide positive and creative suggestions to assist the Executive in the difficult task that lies ahead and welcomes the early opportunity given it by the Executive to do this, in stark contrast with the lack of involvement of the Scrutiny process last year.

(8) Committee is also aware that last year savings proposals were presented to Cabinet by the Coalition administration just two working days before a package of savings was taken at Council and that Scrutiny Committees were denied their constitutional right to scrutinise those proposals, with the relevant part of the Constitution being suspended by Council to facilitate this.

(9) Committee believes it is unrealistic to expect the Executive to present it with detailed options for savings at this point in the year, and agrees to scrutinise any options at the point where they are referred to the Scrutiny Committee by the Executive, in accordance with the Constitution and, if necessary, hold Special meetings at that point.”

The amendment was put and lost (4:6).

The motion was put and carried (6:4) (Councillors Abbey, Doughty, C Jones and Salter voting against).

Resolved (6:4) (Councillors Abbey, Doughty, C Jones and Salter voting against) –

(1) That having regard to the Budget and Policy Framework Procedure Rules (as set out in the Constitution) this Scrutiny Committee is of the view that it will respond to the Cabinet’s proposals at the earliest opportunity.

(2) This Committee considers that it is the prime responsibility of Cabinet members to come forward with proposals for investigation, research or detailed study, in sufficient depth and in the detail required for Members to make informed decisions.

(3) In order for this to be thorough and constructive this Committee requests that proposals should be provided as soon as possible and available for Members to seek information and advice.

(4) This Committee will therefore consider setting a date for a special meeting to consider Cabinet led suggestions highlighting potential savings as soon as they are available.