Agenda item

Report of Chairman of the MTFS Working Group

The Committees Working group had been established to scrutinise the Council’s budget and Medium Term Financial Strategy (MTFS).

The Groups final report set out details of the work undertaken between September 2022 and January 2023; their conclusions; and their recommendations for submission to Cabinet on 25 January 2023.

The working group had concentrated on three areas of business, that being: Capital (programme and assets); Reserves; and SEND Transport.  17 recommendations had been made which were listed in the report.

The Chairman of the Working Group, Councillor Greatorex had been invited to attend the Cabinet meeting to present the findings.

With regards to the SEND area of work, it was felt that work needed to be done quickly and the report did not emphasise the urgency of the task.  The Committee asked for the review (recommendation 10) to be carried out urgently and that the review of routes (recommendation 12) be carried out on a regular and frequent basis.

It was felt that prior to the Government settlement being announced at the end of December 2022, the County Council had been proposing to use £20m from reserves on top of the savings proposed in the MTFS.  The working groups scrutiny had therefore been on how robust this plan was.  It was now presumed that as there was an unexpected extra £37.8m in Government funding, this meant that the £20m was presumably no longer needed from reserves.  There was also £4.2m in the budget for market sustainability and the cost of care in Social Care.  As this was now delayed, it was proposed that this (£4.8m and £20m reserves) could be an opportunity to invest in Highway/Capital improvements in the same way as that proposed in 2021/22, as this could save money in the long term.  The Committee agreed to add this recommendation to those listed in the report.

The Committee discussed the problem of ‘short termism’ and due to the nature of funding bid criteria and the short notice of funding opportunities, it meant that schemes were being pulled together at very short notice without the right level of thought given to the long term effects.

Resolved: 

a)That, subject to the following amendments, the Medium Term Financial Strategy (MTFS) working Group report and recommendations, be approved and submitted to the Cabinet at their meeting on 25 January 2023:

            i.        An additional recommendation 18 to read:

Priority area discussed at Corporate O&S - post settlement

In view of the £37.8m additional government settlement announcement, which may allow for the £20m draw on reserves to no longer be needed, along with the Government scheme delay affecting £4.2m in the ‘budget for market sustainability and cost of care’ in Social Care, there were options to invest.  A sum could be committed as investment in Highway/Capital improvements (in the same way as that proposed last year), as this would save money in the long term. 

          ii.        Recommendation 10 be amended to read:

That the Cabinet Member for Education (and SEND) prioritise the SEND Transport review and consider if timelines can be moved forward.  This should be a priority and addressed early in the financial year.

         iii.       Recommendation 12 be amended to read:

That consideration be given to a review of allocating SEND transport provision on an annual basis to reduce the number of single route taxis. We questioned whether the system used by SCC for route calculation was best in class or whether a more modern system may be beneficial.  Routing reviews should also be carried out on a regular and frequent basis e.g. each academic year.

b) That the wording of the amendments in the report be approved by the Chair.