Agenda item

(To receive a report from Michelle Grady (Head of Finance – Communities) which describes the budget proposals for the next two financial years based on the four year funding deal announced by Government and updated by the 2018/19 Provision Local Government Finance Settlement.  The report specifically looks at the budget implications for two of the Council's commissioning strategies)

Consideration was given to a report by the Executive Director of Finance and Public Protection which provided the budget proposals for the next two financial years based on the four year funding deal announced by Government and updated by the 2018/19 Provisional Local Government Finance Settlement.  The report specifically looked at the budget implications for two of the Council's commissioning strategies.

Michelle Grady (Head of Finance – Communities) introduced the report and explained that Table B provided the services within the commissioning strategies and Table A set out the changes to each of those budgets. 

The Board noted the following cost pressures:-

·       There were proposed cost pressures of £0.309m in 2018/19 and £0.391m in 2018/20 to meet the Council's obligation to pay staff and some contractors the central government set national living wage;

·       There were cost pressures relating to increased property rates and utility costs of £0.165m in 2018/19 and an additional £0.181m in 2019/20;

·       A one-off cost pressure of £0.321m for the conclusion of the West Deeping minerals site archaeological costs;

·       Strategic Communications would have a cost pressure in 2018/19 relating to increased costs of the Lincolnshire Show of £0.015m; the publication and delivery of County News of £0.040m and the development of the Council's digital platform of £0.020m; and

·       Cost pressures within Information Management Technology (IMT) in 2018/19 were £4.436m and £0.200m in 2019/20.  These related to the licensing costs (£1.388m); a Data Protection Officer to ensure compliance with the General Data Protection Regulation (GDPR) (£0.048m); additional Technical Architect and Business Analyst posts (£0.2m) and the improvement of the technology enablers to improve the IMT supporting the Council's services (£3m).

Members were invited to ask questions, during which the following points were noted:-

·       The Council had taken a decision to cease the graduate programme for new entrants and also the Leadership Management Development Programme.  The focus would now be on apprenticeships as the Local Authority had paid an apprenticeship levy which could be clawed back through approved apprenticeship programmes.  It was confirmed that these apprenticeships were available at all levels of development and not solely for school leavers; and

·       Expenditure of £3m for the improvement of the technology enablers within IMT provided some concern for members.  Whilst this was generally accepted, a business case was requested to present the detail in order to justify this proposed budget.  Members were reminded that a Scrutiny Panel was reviewing this particular issue and would report back to the Executive later in the year.

RESOLVED

1.    That the report be noted; and

2.    That the comments noted below be passed to the Executive for consideration prior to its meeting on 6 February 2018:-

o       In answer to concern raised by a member of the Board about the decision to end the graduate programme for new entrants and the Leadership Management Development Programme, the Board was advised that the Council's focus was now on apprenticeships.  The Local Authority currently paid an apprenticeship levy and there were opportunities to claw some of the levy back through approved apprenticeship programmes.  These apprenticeships were available at all levels of development, not just school leavers; and

o       While it was generally accepted that there was a need to fundamentally review the Council's Information Technology (IT) Strategy, and earmark funds for investment in IT, it was commented by members of the Board that there would be a need in the future to provide a business case and more detail to justify the budget of £3m, highlighted in the report.  Members were reminded that a Scrutiny Panel was reviewing the situation and would be reporting back to the Executive later this year.