Agenda item

To consider a presentation from the Leader of the Council on challenges/opportunities for the year ahead – followed by Q&A.

Councillor Stephen Conway, Leader of the Council, attended the meeting to give a presentation (set out at Agenda pages 13 to 20) on the challenges and opportunities facing the Council over the next year. Graham Ebers, Deputy Chief Executive and Director of Resources and Assets, also attended the meeting to answer Member questions.

The presentation highlighted the following challenges facing the Council:

·           an unprecedented financial position with spiralling inflation coupled with a Budget gap;

·           the cost of living crisis, rising inflation and growing financial pressure on local communities;

·           inconsistency in partnership relationships leading to missed opportunities for collaboration;

·           an opportunity to improve governance, scrutiny (especially the “Overview” aspect of Overview and Scrutiny) and review.

Councillor Conway outlined the ongoing work to develop a new Community Vision for the Borough. This had involved a range of workshops with community representatives including Town and Parish Councils, the community and voluntary sector, NHS, Age UK, CLASP, Youth Council and Thames Valley Police. The workshops had developed themes relating to health and wellbeing, equality, inclusion and opportunity, environment and sustainability, community engagement, working with young people and the business community.

Some of the aims of the Community Vision were to empower residents, improve quality of life, reduce inequality, focus on outcomes and build deeper collaboration between partners across the Borough.

Councillor Conway concluded by highlighting the key next steps:

·           continuing to provide a safe Budget position for WBC, now and in future years, whilst protecting the most vulnerable within the Borough;

·           moving forwards with the Community Vision for the Borough, through co-production and community engagement;

·           working in partnership with more organisations to drive better outcomes for the Borough.

In the ensuing discussion, Members raised the following points and questions:

How could the Overview and Scrutiny Committees support the development of policy? Councillor Conway commented that it would be useful if Scrutiny was more engaged in the early stages of policy development, providing “critical friend” challenge and support.

How was the impact of soaring inflation managed within contractual arrangements? Was the difference between projected and actual inflation levels an element in the Budget pressures facing the Council? Graham Ebers explained that there were different contractual arrangements depending on the type of contract. More traditional contracts, e.g. in Place and Growth would be linked to an index. There were also more variable contracts, e.g. in the care services where an understanding of the market was essential, i.e. ensuring that smaller providers were able to continue to operate. The impact of inflation over the past year had resulted in an £11m pressure in the Budget. This was much higher than in previous years.

The development of the proposed Community Vision could be considered as “pie in the sky” and an attempt to offload WBC responsibilities to partners. What tangible benefits would be delivered for residents of the Borough? Councillor Conway stated that the new approach was about working with partners rather than offloading onto partners. It was about working collaboratively in order to deliver more with less resources. It was clear that the current financial challenges would continue into future years, so business as usual was not an option. The pooling and sharing of data could result in more targeted services and the levering in of additional resources and expertise.

What were the other impacts of soaring inflation, e.g. on the health and wellbeing of families and recruitment and retention challenges facing the Council and its suppliers/contractors? Councillor Conway noted the impact of the cost of living crisis on the demand for services. The £11m figure discussed earlier was much higher when the impact of additional service demands was factored in. As an example, WBC dealt with a higher proportion of SEND pupils than many councils. The location and capacity of schools in the Borough also created significant pressures on the Home to School Transport budget. Supplier failures in the construction and care sectors also impacted on the services provided by WBC.

Graham Ebers gave details of one of the complex financial issues facing the Council – the “Safety Valve” funding deal agreed between the Council and the Department for Education. Under the agreement, the Council agreed to reach a positive in-year balance on its Dedicated Schools Grant (DSG) account by 2028/29 and in each subsequent year. A number of local authorities were involved in the Safety Valve scheme. It was now a standing item on the Children’s Services Overview and Scrutiny Committee. Partnership working was ongoing with schools and other partners with the aim of bringing the DSG deficit under control.

When the 2023/24 Budget was set, in February 2023, what provision was included for inflation? It was confirmed that there was no single figure for inflation as the level differed in relation to different aspects of the Council’s operations, e.g. the annual pay award and different contractual uplifts. The net impact was estimated to be £11m.

What was the opportunity for improving Scrutiny “Overview”? Councillor Conway stated that there was an opportunity for more involvement of Scrutiny at the early stages of policy and service development. Constructive suggestions would be welcomed. The important role of Budget Scrutiny was also emphasised.

In relation to improved partnerships, was there a focus on improved working with Thames Valley Police? It was agreed that partnership working with the police could be improved and this would be an area for extra focus.

The presentation stated that the Council had received £3.1m to help purchase 17 new home for Ukrainian refugees. Was there a risk that the Government would seek to claw back some of this money? It was confirmed that the agreement with the Government stated that the £3.1m was allocated for the Council to use.

What was the budget for community engagement and partnership work and was there an expectation that this work would generate extra money for WBC? Councillor Conway stated that the budget for this work could be confirmed. In the meantime, the expectation was that enhanced partnerships would result in additional money through better targeting of existing resources and the generation of additional grants and extra sources of funding. Also, the sharing of data would lead to efficiencies and improved targeting. There were existing examples of effective partnerships, e.g. the Tenant and Landlord Improvement Panel (TLIP).

RESOLVED That:

1)     Stephen Conway and Graham Ebers be thanked for attending the meeting to answer Member questions on the challenges facing the Council;

2)     Councillor Conway’s comments on the scope for improving the “Overview” function of Scrutiny be welcomed and be the subject of further discussions with the Chairs of the Overview and Scrutiny Committees;

3)     work on the Children’s Services “Safety Valve” agreement with the Department for Education be noted and be the subject of an all-Member briefing;

4)     specific focus be given to improving partnership working with Thames Valley Police.