Agenda item

To consider a report covering the latest Medium Term Financial Strategy, for the Select Committee to fulfil it’s role to scrutinise ‘Relevant Financial Management (e.g. budget setting and monitoring final accounts, capital programme, capital receipts)’.

The Select Committee received a report and supporting presentation from the Head of Finance, on behalf of the Director of Corporate Resources – Corporate Services, regarding the Medium Term Financial Strategy (see Item 7 in the Minute Book). The report had been considered by Cabinet on 16 October 2017 and County Council on 2 November 2017, and was considered by the Select Committee as part of it’s role to scrutinise financial management.

Members were reminded of the background to the County Council’s current financial position, and heard that the financial strategy was to apply the same percentage reduction to all departments to meet the savings target under the transformation to 2019 programme. However, additional funding was provided where there were particular pressures e.g. social care demand growth.

It was reported that a section on Commercialisation had now been added to the Medium Term Financial Strategy (MTFS). Members queried why the County Council did not invest in property. It was responded that advice had been received that in order to spread risk, a minimum portfolio of £400 million would be recommended. The County Council did not plan to invest in property on this scale. However, the County Council did invest some funds in pooled property funds.

A Member commented that in previous decades the County Council had invested in land which was later used for development. It was responded that this was still the case, however there were less opportunities available to do so.

It was noted that the feedback to the public consultation undertaken in the summer of 2017 showed 65% of those responding supported the current financial strategy.

Members heard that the Better Care Fund and Adult Social Care Council Tax precept were anticipated to cover adult social care pressures up to 2019/20. Pressures were now increasingly being experienced in children’s social care and schools budgets.

Cllr Perry reported that the Cabinet had asked officers to consider alternatives to avoid making the savings that affect community transport. He had received notice that the Secretary of State was willing to meet to hear the County Council’s proposals regarding concessionary travel. The County Council was lobbying for the opportunity to introduce a charge for concessionary passes and potentially a contribution to bus journeys, in order to subsidise community transport and bus subsidies. However it was not clear yet whether this approach would be acceptable.

It was discussed that the County Council was willing to devolve some tasks to parishes e.g. grass cutting, however not all areas are parished. Cllr Collett declared a non-pecuniary interest – that he was Chair of a Town Council and a member of another (he remained in the meeting). Cllr Collett reported that Fleet became parished seven years ago and it had been a success, and encouraged areas that aren’t already to consider setting up parish or town councils. The Chairman suggested this was something that could be explored through HIOWLGA.

A Member queried why the County Council had not considered running bus services directly. The Chairman of the Economy Transport and Environment Select Committee reported that she had asked about this and received a briefing note on the topic, that could be circulated to members of the Policy and Resources Select Committee.

RESOLVED:

That the Policy and Resources Select Committee note the Medium Term Financial Strategy.