Agenda item

7.1

The Committee received a presentation from Marianne Betts (Director of Finance and Commercial Services) on the budget planning approach for the 2019/20 budget, and the financial targets set for the Council. Also in attendance for this item was Councillor Mark Jones (Cabinet Adviser for Finance).

7.2

Ms Betts stated that, whilst the Council intended to propose a balanced budget for 2019/20, this would prove very challenging due to continuing constraints on Central Government funding and the rising demand for social care.  In the light of service pressures remaining very high, which was not dissimilar to many other local authorities, there was a need to deliver further savings in the medium-term, as well as having to use reserves to achieve the balanced budget.  Ms Betts provided a summary of the financial position and referred to the approach the Council intended to take in order to achieve a balanced budget.  She reported on the proposed approach, highlighting the savings required by the Council’s portfolios, and on what the future held in terms of budget planning, with regard to terms of risks, opportunities and the Capital Programme. Ms Betts concluded by referring to the timetable in respect of the budget setting process.

7.3

Members of the Committee raised questions, and the following responses were provided:-

·             It was highly likely that there would be an overspend carried forward to 2019/20, which was forecast to be £15.3 million as at August 2018, though could be lower in value as the Council continued to review budget pressures to achieve savings throughout the remainder of 2018/19. 

·             The Council continued to bear significant social care pressures, and detailed discussions had been, and would continue to be, held, with the Clinical Commissioning Group, which included frequent conversations at the monthly meetings of the Executive Management Group to review and change the system-wide issues and cost pressures forced in care provision.

·             A considerable amount of work had been undertaken to ensure that Sheffield does not suffer the same fate as Northamptonshire, and everyone needed to be aware that, unless there were significant changes in the next few years, a number of other local authorities could find themselves in similar circumstances.  As well as the need for a series of incremental changes in the medium-term, there was also a need for fundamental changes at the present time.

·             Due to market factors, the contributions the Council was required to make to its pension fund may reduce, thereby providing a short-term release of funds into the budget. However, the value  of the contribution available still remained subject to the actuarial review, and a Government White Paper regarding this review and pension cycle, may push the availability of the contribution out from 2021/22 to 2022/23.

·             The £15m one-off funding provided corporately for social care 2019/20 comprised a combination of Council reserves and contingencies around health and care.

·             The introduction of Universal Credit was not forced to have any major impact on Council House rents in 2019/20, though a marginal loss was anticipated due to the initial roll-out only affecting new claimants or those declaring a change in circumstances to the Department for Work and Pensions.  Other local authorities had seen a material loss in housing rent and increases in arrears by tenants, but principally, this occurred when all benefit claimants were transitioned wholly to Universal Credit. For Sheffield, this was currently planned to occur in 2022/23 when, at this point, there may be a material adverse effect on the budget. During the roll-out of Universal Credit up to 2022/23, it was anticipated that existing benefits caseloads managed by the Authority would reduce by 1-3%.

7.4

RESOLVED: That the Committee:-

(a)      notes the information reported as part of the presentation, together with the responses to the questions raised;

(b)      thanks Marianne Betts and Councillor Mark Jones for attending the meeting, and responding to the questions raised; and

(c)      arrangements be made for senior NHS Officers to attend a future meeting of the Committee to discuss the relationship between NHS and Council budgets.