My report to council

Posted By: Greg Couzens
Date Posted: 17/10/2008

Thank you Mr Mayor for the opportunity to report to the Council the latest developments on various matters relating to the Finance and Highways Portfolio.


The budget process for 2009/10 started at the last Cabinet when we received an update on the financial position and the budget timetable and guidelines. When we approved our budgets in February 2008 I was delighted to be able to report a balance three year budget with extra spending on our investments and a manageable efficiency target. I am pleased to say that despite some changes in assumptions we still have a balanced budget for the next two years providing we can achieve our planned efficiencies. This will also enable us to have around £2m to invest in high priority areas.

I am especially pleased that we plan to continue to propose lower increases in Council Tax in each year. We will be working through the details of the budget over the coming months and we will be consulting on our proposals before final decisions are taken in February 2009. In particular we need to ensure

• That our proposals for new investment meet our priorities 
• That our efficiencies can be achieved 
• Ensure that our budget is sustainable

While this is a good position to start with there will be pressures and risks which we will need to keep an eye on

• We are currently finalising the pay and grading review and any financial implications will need to be reflected 
• The achievement of the modernisation within adult care will be crucial in delivering our budget plans 
• In addition we need to reflect any implications of the credit crunch. As indicated previously we are currently not seeing any major implications for the revenue budget but increased prices and pressures on pay will be a factor going forward.

At the last Council meeting I indicated potential risks in this year’s budget of over £3m. The situation this time is very similar although we have seen some further pressures particularly in child care. It is always difficult to accurately predict the outturn at this time of the year and there is a tendency for services to be prudent about their financial position. This is the right thing to do because we can now target these areas and find ways of reducing and eliminating these risks. The biggest area of risk remains adult care and I will be having regular reviews with the service and portfolio holder on the modernisation programme. As yet we are not seeing any major financial effect of the credit crunch on the revenue budget. We are achieving more income on investment than we forecast and we will continue to maximise this position while keeping a close eye on the markets. We will continue to manage this budget and report to every meeting of Cabinet. It is imperative that services bring their spending in line with budgets and I intend to keep a close eye on this over the coming months.

Members may be aware that there is a major modernisation programme going on in Revenues and benefits. This is dramatically improving the time it takes to process a benefit claim and therefore people receive their benefit more quickly. In one case a benefit claim was brought in, processed and put in payment in 39 minutes! The new appointments service is very well received by customers and we plan to extend this scheme to ensure all our benefit customers receive an improved service. We can’t promise 39 minutes every time but it will be a significant improvement.

Last month I attended a conference in London about Financing the future of local Government and generating new revenue streams. This subject is close to my heart, we need to be thinking more creatively, gone are the days of relying on handouts from central Government, we have to remain prudent whilst promoting more of a business acumen, leading to a stronger degree of self sufficiency.

I will report further details in the new year.

We have secured a contract with Hammersmith and Fulham council to manage their contact centre; this could create employment for as many as 30 additional staff.

This is incredibly good news considering the present economic climate.

Councillor Greg Couzens