Meeting: Overview and Scrutiny Committee (County Hall, Durham - Committee Room 2 - 28/01/2008 01:00:00 PM)
Item: A1 Minutes
DURHAM COUNTY COUNCIL
OVERVIEW AND SCRUTINY COMMITTEE
At a Special Meeting of the
Overview and Scrutiny Committee held at the County Hall, Durham on
Monday 28 January 2008 at
1.00 p.m. Present: Councillor J Armstrong in the Chair
Members: Councillors Barker, Bell, Bowman, C Carr, Chapman, Coates, Cordon, Davies, Ebbatson, E Foster, N Foster, Henderson, Holroyd, Martin, Ord, Pendlebury, Pye, Robinson, Shuttleworth, and Simmons.
Co-Opted Members: Mr D Bates, and Mr B Birch.
Parent Governor Representatives: Mrs A Tallentire
Apologies for absence were received from Councillors R Carr, Chaplow, Mrs Sands and Mrs Richardson.
A1 Minutes The Minutes of the meeting held on 21 January 2008 were considered. With the following amendments made the minutes were confirmed as a correct record and signed by the Chairman. That page 5 be amended to read that the £3.3m was for the Rural Bus Subsidiary and Road Safety Grant. Clarification was provided on page 4 that it was the Committee that would meet on 28 January at 1.00 p.m. to consider the budget further, and it would be the Cabinet that would meet on 31 January.
A1 Declarations of Interest There were no declarations of interest.
A2 Budget Update The Deputy County Treasurer gave the Committee an update on the budget position.
He advised that the report that was to be considered by the Cabinet on 31 January 2008 set out the position on the budget position as had been explained to the Overview and Scrutiny Committee at its meeting on 21 January 2008 (for copy of report to Cabinet see file of minutes). He confirmed that the report contained additional investment of £500k for youth services, £500k for environment services, £350k for community centres (reverse savings of £250k that had been identified, and there would be an additional £100k), £250k for the increasing legal costs for care proceedings, and £140k on the choice agenda. The report contained the proposals to reverse the decision on making savings that had been contained in the consultation document; these were £1m for environment services, £70k for in-house provider efficiency savings in adult services, and the other for £200k for supported housing. He explained that these were the main changes that had been made to the revenue budget following the consultation document, and that these were still based on an increase of council tax of 2.9%.
He confirmed that the report to Cabinet contained proposals to top slice £100k of the Area Based Grant to be available to the Partnership Board to help alleviate the financial pressures faced by the Voluntary Community Sector.
He advised that they were now in receipt of the final settlement and there was a reduction of £460k from what had been expected. The settlement had been received after the report for Cabinet had been printed however this information would be passed on to the Cabinet. He went on to explain the options that were available to Cabinet to address this. These were to increase council tax to 3.25%, look at t He advised that they were now in receipt of the final settlement and there was a reduction of £460k from what had been expected. The settlement had been received after the report for Cabinet had been printed however this information would be passed on to the Cabinet. He went on to explain the options that were available to Cabinet to address this. These were to increase council tax to 3.25%, look at the growth items that had been identified and make cuts, use the savings, and/or reduce the contingencies. It was pointed out that a combination of those options could be used.
Following a question from members about the funding for community centres clarification was provided that the £350k was made up by reversing the decision to make savings of £250k, and provide an additional £100k.
Councillor Ebbatson advised that he was supportive of the funds for community centres however he had reservations in giving this to each community centre. It should be used to build capacity of community centres and not community centres that are not helping themselves to be financially viable.
Councillor Cordon pointed out that the difficulties for community centres to be run on a commercial basis. Since their maintenance grant was taken away, many centres were struggling to stay open. He believed these centres should have proper financial support.
The Chairman commented that since the LSC had taken over responsibility for the funding of community centres many were struggling. He pointed out that the £350k would help community centres for the next year and then it would be for the new unitary authority to address this issue.
Councillor Pye requested that any additional money for community centres go to front line services rather than to the back office. He was aware that many centres were finding it hard to keep afloat.
Councillor Shutlleworth pointed out that the costs for running a community centre had increased dramatically with the changes in pricing for utilities, and insurance. He pointed out that most centres are run by volunteers.
Councillor Davies supported the direction suggested by Councillor Ebbatson however as the funding was to keep community centres afloat for the next year, from April 2009 these problems could be addressed by the new unitary authority. With the devolved budgets to communities local people would be able to determine the centres they would like and assess whether they could be sustainable.
Councillor C Carr suggested that as it would be difficult for community centres to become self financing, perhaps the unitary authority could provide finance to support the framework and then provide assistance to make them self financing.
The Chairman advised that there had been a scrutiny working group that had looked into the issue for community centres and had made recommendations to Cabinet. He reminded members that £350k was purely to keep the community centres afloat for the next year.
Members would request information on the breakdown of how the funding for community centres together with that for youth services and environment was to be used.
In response to a question from Councillor Chapman about the position with Shildon People’s Centre in relation to whether it would receive some of this funding, he was directed to seek clarification from the Director of Children and Young People’s Service, and the appropriate Cabinet member.
Members were informed of the circumstances behind Allington House in Durham City closing, and commented that this was a typical example of a community centre being dependent on volunteers no longer being able to keep going.
Councillor Martin was disappointed that the authority had drifted on this issue for sometime and that still there was no action being taken on having a policy. He welcomed the £500k for youth services and suggested that as there is a link between youth services and community buildings, work needed to be done in joining these two services to ensure that the money is spent in the best way possible.
Councillor Bell suggested that some of the money from highways budget be used in the rural community. He suggested that the new authority be given a steer on how to help community centres, and that they would need an ongoing level of support. He was aware that some centres are used only a few times a week, and they should be looked at to see if they are financially viable.
Councillor Southwell suggested that the Committee make recommendations to the Cabinet for the council tax rate to be set at an increase of less that 2.9%, possibly at 1.9%. He believed that with the authority receiving a better financial settlement than originally expected they should use the funds in this way. He commented that as they had received a 7% increase in its settlement from the Government, 1.9% was achievable, and this would be below the rate of inflation. He suggested that they make necessary cuts on non-statutory services. He suggested that the Authority bear in mind that from April 2009 they would have the reserves from the District Councils. Members commented that they could not rely on receiving reserves to set the budget.
Councillor Martin advised that as prior to receiving the provisional financial settlement the authority was looking at increasing council tax by 3.9 %, and therefore as they were in far better position now than envisaged earlier he was sure they could set the council tax at 1.9%.
The Chairman pointed out that it was matter of balancing the budget. He reminded members that it was good to be able to debate how to spend extra resources rather than making savings.
Councillor N Foster pointed out that all community centres have an SLA which contained a provision they at if they receive money from the authority they get something back from this. He believed that they need to look into which community centres were actually required, in some areas there was more than one community centre and they needed to ascertain were they all required, many do not work together, and are not able to be used by the whole community. He referred to the BSF programme and how this would bring about community facilities.
Councillor Henderson pointed out that when they looked into the ownership of community buildings they found that many were owned by a variety of organisations. He suggested that the authority have a vision and resources to go with it.
In response to a question from Councillor Henderson, the Deputy County Treasurer advised that the RPI rate was nearer 4% at the moment, overall salary increases across the economy is 3.5%, LGA advised that last year the local Authority increase in jobs was over 5%.
Councillor Davies advised of his support for the council tax rate to be increased by 2.9%. If it was to be set at 1.9% as suggested by Councillor Southwell they would need to make savings of £1.5m.
Councillor Ebbabtson suggested that they needed to start work on producing a strategy and vision for community centres. There needs to be a policy framework in place and to look at whether each community centre would be financially viable and whether there would be value for money. He welcomed £350k for community centres however would like Cabinet to proceed with a Vision and Policy.
In response to a question from Councillor C Carr about how much money was received from DC Treasurer’s about payments of benefits, the Deputy County Treasurer advised that this was £450k.
Councillor Coates advised that at the Pensions Fund Committee earlier that day statistics had been received from the actuary and that the increases proposed were higher than expected. He suggested that the Committee do not recommend any budget that would be too restrictive on its balance, he would recommend a budget based on an increase of 2.9% rather than 1.9%. The County Treasurer had been asked to collect this information from District Councils and report this to the forthcoming G8 (Implementation Executive) meeting.
Resolved:-
1. The Committee welcomes £350k as investment in community centres. Cabinet be reminded that the Overview and Scrutiny report on Community Buildings in August 2007 made a number of important recommendations about our buildings (County Council owned buildings) and the capacity within them to support a flourishing community. A key recommendation in the report related to the lack of a policy/ strategy for our Community Buildings recognising the need to ensure that our investment priorities are in line with our strategic approach in support of our communities.
2. That Cabinet be asked to supply a breakdown of how they will spend the extra funds on community centres, youth provision and environment.
3. To recommend to Cabinet to make an increase in council tax of 2.9%
4. To recommend to Cabinet to use its contingencies to fund the deficit.
Attachments
Minutes 28 January 2008.pdf