Agenda item

Presentation for Members information

The Council’s Chief Executive, Beverly Agass, made a presentation to the Council on the initial summary of the Comprehensive Spending Review in order to keep Members up to date with what the Council knew at this stage. It was noted that the Council was taking a considered approach to budget constraints. The Council would face budget cuts of around 7% for the next four years in real terms. There was further uncertainty over the grant in relation to concessionary travel. It was noted that the Council was well placed financially as it had taken a prudent approach to financial management. It was proposed that there would be major changes to Council Tax Benefit from 2013 and from 2014 the Council would be able to retain business rates collected. There were a number of proposed new funds that the Council could look to access. The new government had made a strong commitment to devolve power to local authorities and it was also noted that there would be a further removal of ring-fencing of budgets, which would give the Council greater flexibility and financial control. Lincolnshire County Council had also been nominated to pilot Community Budgets from April 2011, prior to this being introduced nationally from 2013. The Council would also no longer be required to report performance against some 4700 Local Area Agreement targets or National Indicators.

It was noted that the Council would have to consider new ways of working, which may involve the Council becoming a commissioner of services rather than a provider of services. It was also thought that other ways of providing services, such as through the community or volunteer providers could be considered. It was necessary to consider the needs of local people, and some work had already been undertaken to establish the community’s priorities.

A debate took place and Members raised a number of issues. Members highlighted that where services were outsourced, the Council still retained the responsibility for those services. Members needed to be aware that outsourcing services was not an easy way out and that any poor service would reflect on the Council, not on the providers of those services. It was noted that this was something that may have to be considered. Members expressed some concern that the County Council was to pilot Community Budgets and questioned why the Council had not been consulted on this. It was noted that the timescale for applications had been particularly short and it full details were not available as to how it would work.  Members noted that they were pleased that there were no sudden decisions and that a measured approach was being taken. It was noted that the Council held reserves and it was suggested that it may be useful to use these reserves in the short term to maintain services levels. Members noted that there had been an announcement made and it may be possible that the Council could receive an extra 2.5% in grant funding if the level of Council Tax was frozen. It was also noted that there was some talk of the housing subsidy ceasing, with the Council allowed to keep all rental income, but this may come at the cost of having to take on the debt for the housing stock. A question was raised as to whether the Council’s reserves would be taken in to account when establishing the level of grant funding, but the Council had not heard that this would be taken in to account.

The Members thanked the Chief Executive for her presentation.