Issue - meetings

The Resources Director introduced this item and delivered a related presentation which covered:

·             Reasons for the projected £6.0million budget gap

·             Trajectory of the medium term General Fund revenue budget gap of £2.7million in 2022-23 rising to £6.0million by 2025-26

·             The Savings Strategy

·             Definitions of Savings Types

·             Options / Workstreams

·             Considerations

·             Resources

·             Potential costs and benefits

·             Issues, assumptions and risks

·             Dependencies, constraints and opportunities

·             Reviewer List

·             Corporate Management Team and Executive Liaison Feedback

By way of introduction, the Director advised that the Savings Strategy related to the next five years and was intended to assist with mitigating the estimated £6.0million General Fund revenue budget shortfall.  There was an anticipated overspend of £9.0million in the 2020/21 financial year with expected financial pressure in 2021/22 owing to a delay in the Government’s pandemic lockdown easing plan.  Therefore, there was an urgent requirement to identify any and all potential savings that could assist with bridging the budget gap over the next few years.  Savings delivered to date included a reduction in staffing costs of £4.3million through the Future Guildford programme.

Areas highlighted in the presentation included the receipt of some one-off Government grants to provide financial support during the pandemic.  However, in general, Government funding had reduced by approximately 50% over the last five to six years.  In terms of the £6.0million budget gap, factors such as the Local Government Finance Settlement, the final accounts for 2020/21, the findings of the Capital Investment and Outturn Report and debt interests likely to be incurred in 2022/23 could all have an impact on the 2021/22 and 2022/23 financial years.

The Savings Strategy was a high priority piece of work required to secure the Council’s future financial viability which overarched a number of savings project workstreams that would each have their own individual mandate.  In terms of potential costs and benefits, some costs would be incurred in the process of identifying potential savings.  Attention was drawn to the need to apply the entire Strategy to closing the budget gap as no single savings strand would be sufficient to achieve this alone.

The Lead Councillor for Resources highlighted the fact that this Council spent significantly more on some service areas compared to other similar councils on a per head of population basis.  Although this would not render savings in such areas any less unpopular or controversial, it was emphasised that the Council needed to identify and progress spending reductions to address the budget gap.

The following points arose from related questions, comments and discussion:

1.           In terms of the Future Guildford programme, its Board had met on limited occasions during the past year owing to difficulties associated with the pandemic lockdowns.  The programme was nearing completion following the implementation of Phase B of the related restructuring and of the majority of the associated new technology.  However, some teams remained in a transitional period.  Following the instigation of the remaining ICT modules, a development pipeline for the new technology would be introduced, particularly around the Business World and Salesforce  ...  view the full minutes text for item 32

Decision:

To approve the updated savings strategy set out in the report and Appendix 1

Reason:

To ensure the Council remains financially sustainable into the medium term.

Other options considered and rejected by the Deputy Leader:

None

Details of any conflict of interest declared by the Deputy Leader and any dispensation granted:

None

The meeting received and considered a briefing note presented by the Resources Director in respect of the General Fund Savings Strategy as at May 2021 which provided the background to the Savings Strategy, identified the associated workstreams and provided a progress update in respect of the workstreams.