Agenda item - Worcestershire Regulatory Services Budgets 2018/19 - 2020/21

Agenda item

Worcestershire Regulatory Services Budgets 2018/19 - 2020/21

Minutes:

The Executive Director, Finance and Corporate Resources, Bromsgrove District Council and Redditch Borough Council introduced a report which detailed the Worcestershire Regulatory Services Budget for 2018/2019 and 2020/2021.

 

The Executive Director, Finance and Corporate Resources, Bromsgrove District Council and Redditch Borough Council drew Members’ attention to Appendix 1 to the report, which showed the 2018/2019 – 2020/2021 budget breakdown for the district partnership.  The income projections were included in Appendix 2 to the report.

 

The report highlighted the following assumptions that had been made in relation to the projections:-

 

·         A 2% pay award across all staff for 2018/2019 – 2020/2021.  This would be subject to the ongoing National Pay Negotiations.  Therefore the final position would reflect any formally agreed increases.  The budget also included any employee entitled to an incremental increase.  This would increase the gap in funding to £163,000 by 2020/2021.

 

·         No inflationary increases in supplies and services, premises or transport.

 

·         The pension back-funding deficit was paid in advance by all partner authorities.

 

By 2020/2021 should the additional income not be met there would be a potential increase to partner funding as follows:-

 

Bromsgrove

£24k

Malvern

£21k

Redditch

£28k

Worcester City

£27k

Wychavon

£38k

Wyre Forest

£25k

 

£163k

 

 

In response to questions from Members concerns with regard the three year budget, the Head of Regulatory Services, WRS, indicated to the Board that WRS may struggle to hit the income target at the end of a period but it should achieve the figure for 2018/2019.  Also if proved difficult to achieve the income target the service had some reserves to mitigate the impact on partner authorities.

 

The Executive Director, Finance and Corporate Resources, Bromsgrove District Council and Redditch Borough Council informed the Board that the £163,000 figure was the worst case scenario. Should the additional pressure of £26,000 in 2018/2019 be delivered this would leave an additional pressure of £69,000 (£95,000 less £26,000).  Similarly for 2020/2021, if all of the required income was delivered and retained during 2019/2020, only around £70,000 would have to be met in the final year.  Therefore, for £163,000 to be the funding gap in 2020/2021, it would mean that no additional income was brought in above the 2017/2018 figures, hence it was the worst case scenario being presented to Members.

 

Further discussion followed whereby Members agreed that the Treasurers would look at individual partner budgets and that pay awards would have to be factored in.  With regard to income generation and appropriate opportunities and in order to get out of a standstill position; Members asked if there was anything they could do as Board Members or as Members of each partner authority, to promote the excellent service that WRS provided in order to help increase potential income.

 

The Head of Regulatory Services, WRS, thanked Members for their continued and valued support.  He asked if Members could be mindful to identify all potential income stream opportunities, including making people aware of pre-application advice.  There were currently two good leads with regard Primary Authority.  He had spoken with the Head of Community, Worcester City Council, with regard to partner authorities Chief Executive’s and Leaders promoting WRS outside of Worcestershire.

 

Members commented that it was good to see such commitment and acknowledged that officers had worked hard to generate income.  Neighbouring authorities were changing which could impact on WRS.

 

The Head of Regulatory Services (WRS) further commented that Gloucestershire partnerships had moved into a new delivery model, which could in twelve months’ time make them a competitor.  Hence the need to promote the good services offered by WRS.

 

RESOLVED:

a)    that the district partners gross expenditure budget of £3,378k, as shown in Appendix 1 to the report, be approved;

b)    that the district partners income budget of £353k,  as shown in Appendix 1 to the report, be approved; 

c)    that the district partners revenue budget allocations for 2018/2019 and 2020/2021, as detailed below, be approved;

 

Bromsgrove

£439k

Malvern

£386k

Redditch

£529k

Worcester City

£507k

Wychavon

£701k

Wyre Forest

£463k

 

£3,025k

 

d)    that, the approved level of budget allocations be advised to partner Councils through discussions with S151 Officers.

Supporting documents: