URL: https://modgov.north-norfolk.gov.uk/ieDecisionDetails.aspx?ID=544

Decision Maker:

Outcome: Recommendations Approved

Is Key Decision?: No

Is Callable In?: No

Purpose:

Content:   The Director of Resources explained that The Medium-Term Financial Strategy had come to the Committee as a pre-scrutiny item, prior to it going to Cabinet. The information is constantly changing and as such there has been some updates since the report was published. Since the budget at the end of October, the Council will now need to include National Insurance contribution increases of around £350-400,000. This may be funded by Government, but this has not yet been confirmed. New homes bonus, as at 15 October, there has been a substantial increase in properties available for Council tax leading to an estimated grant income of £550,000.  Car parking income is expected to increase due to the rise in car parking fees agreed at Cabinet in October. The Government has also announced a 3.2% funding guarantee, which should provide an increase in the Council’s core spending power. Does assume that we apply a maximum council tax increase of £5 or 3% whichever is greater. Not a straightforward calculation but should be around £400,000 better off. Borrowing costs however have increased and these will need to be budgeted for at approximately £350,000 per year going forward. There are lots of uncertainties within these figures at the moment. There has currently been no communication from Government, but we expect that settlement figures will be announced on 19/20 December.   Cllr Hankin enquired as to whether staff resource had been looked at as part of the ongoing budget process and whether a workforce strategy produced. The committee would like to know many people work in a hybrid way. Haw many staff work part time. Cost of agency staff. When a vacancy arises – is there a process where a manager looks at the resource and output, to determine if that role is still required.   Cllr Shires explained that agency staff were used to assist the depleted Finance team, where resourcing had been an issue. This has now been resolved so it is hoped there will not be a need for agency staff moving forward. The Council will only look to employ people based on the needs of the organisation   The Director of Resources reported that the people strategy is being finalised and will come forward to the Committee once this has been completed.    Cllr Holliday voiced that she felt the report was well written, but asked how the Committee could input into Section 8.   Cllr Shires replied that any help that the committee could provide in identifying areas of budget savings would be greatly received.   The Director of Resources explained that there is also the prospect of business rates reform on the horizon, and this could result in the Council losing a significant amount of funding. However, the Government will have to look at those authorities that are hit hard and potentially provide a transitional grant to help authorities function. We are heading into a time where there is so much uncertainty, but we have to ensure we set a balanced budget that delivers for residents.   Cllr Heinrich asked if Officers had looked at non statutory and statutory services, as they all need to be evaluated in terms of benefits to economy and benefits to residents. Need to make savings from a point of knowledge.   Cllr Fredricks stated that officers had been working for months to identify savings, including doing their own business analysis.   Cllr Shires it is useful for all members to understand which services are statutory and non-statutory. A workshop can be arranged following this year’s budget setting to improve awareness among members.    Cllr Cushing voiced his approval for how clear sections 1 to 7 of the report was. However, felt that the strategy within Section 8 needed to be expanded. 90% of the Council’s costs are staff so it is necessary to have a firm handle of the number of people employed and understand how these costs are broken down by statutory and non-statutory services.   The Director of Resources explained that staffing costs are currently below 90% of total expenditure. The Council has less flexibility on contract costs. Currently there are 314 staff employed by the Council - 329 full time and 85 part time. We need to determine what level statutory services should be provided at. Every time there is a staff vacancy a business case must be drawn up for filling the vacancy. Agency staff are a last resort, but some areas are very difficult to recruit into. CLT do consider very carefully the need to employ staff.   Overview and Scrutiny Committee confirmed support for the proposed steps to close the gaps within the MTFS.   It also made the following recommendations to Cabinet:   ·       To take a twin track approach to savings, looking not only at those that can be achieved within 2025/26 but also those with a longer lead in time to ensure savings are progressed into 2026/27 and beyond. ·       The awaited Workforce strategy be used to help understand staff costs arising from use of part time and hybrid working and agency staff cover to explore scope for greater efficiency savings. ·       A Workshop be arranged to understand options around statutory and non-statutory service provisions and to explore and evaluate options for beneficial changes. Action Cllr Shires.  

Date of Decision: November 13, 2024