Agenda item

The Committee considered a report which detailed the proposed revenue budget for Worcestershire Regulatory Services for 2014/2015 – 2016/2017.

The Executive Director, Finance and Corporate Resources, Bromsgrove District Council introduced the report and in doing so drew Members’ attention to page 22 of the report which highlighted the agreed recommendations from the last meeting of the Joint Committee in November 2013.  The report had been a complex piece of work with the savings requested from Worcestershire County Council (WCC), Wyre Forest District Council and Worcester City Council.  An officer working group had been set up to look (collectively) at the constraints and savings of all partner authorities.  Officers looked at fixed costs, hosting costs and the minimum level of service for WCC, more specifically around Trading Standards.

A review of the costs associated with the services delivered to WCC was undertaken with a restructure of staffing to realise the required savings.  As a result of the review £405,000 per annum was identified in relation to WCC services for 2014/2015, together with £8,000 from the reduction in hosting costs.  In relation to the staff savings, due to the time required for consultation and staff termination periods, there was only a part year effect of these changes in 2016/2017.  This has resulted in a shortfall of £222,000 in relation to the part year effect to meet the level of reduction required for 2014/2015 for WCC services, WCC had accepted this.  However it was accepted that due to the timing of potential restructures that there would be this level of shortfall.

As part of the budget review for Wyre Forest District Council savings of £49,000 had been delivered in 2014/2015, with a further £37,000 being requested during this year.  The £37,000 per annum had been identified but again only £28,000 could be realised in 2014/2015 due to staff restructures and the reduction in hosting costs.  There was a remaining £9,000 to be delivered in 2014/2015 should the partner request be fully met.

As part of the budget review for Worcester City Council savings of £22,000 had been delivered with a further £34,000 requested for 2014/2015.  The £34,000 per annum had been identified but again only £27,000 could be realised in 2014/2015 due to staff restructures and the reduction in the hosting costs.  There was a remaining £7,000 to be delivered should the partner request be fully met.

The savings requested from Worcester City Council and Wyre Forest District Council had been realised within 2014/2015 by identifying specific areas of work that could be redesigned to deliver savings solely for these two partners.  This pilot could be rolled out to other partner authorities should it prove to be successful in 2014/2015.

The Executive Director, Finance and Corporate Resources, Bromsgrove District Council highlighted that no further savings had been requested from the other partner authorities.  Appendix 1 to the report detailed the financial framework for 2015/2016 and 2016/2017.  This included the total reductions in budget requested by all partner authorities which were required.  Officers were currently working through the levels of fixed costs and partner requirements with the aim to reduce costs to the level requested.  Future year’s budgets would continue to be reported to Joint Committee Members as more information became available.

The Head of Worcestershire Regulatory Services (WRS) responded to Councillor D. Hughes, Malvern Hills District Council, who asked if he was comfortable that the savings would not hinder his ability to provide the service?  In his response he highlighted that during the next financial year there would be significant cuts which would affect the service.  As a result of the level of savings identified, Worcestershire County Council, Wyre Forest District Council and Worcester City Council had all received a risk assessment.

Councillor M. Hart, Wyre Forest District Council was content as to where the savings were coming from for the second year and year on year, but not at the expense of WRS statutory duties and residents.  He would carefully watch the Worcester City Pilot and wanted to congratulate the Head of WRS for the savings achieved.  The Head of WRS responded that it was a 3 year financial plan and future savings would have to be identified.  He would ensure that the team remained extra committed and there was no effect on residents or the service.

RESOLVED:

(a)  that the revenue budget for 2014/2015 of £4.637 million to be allocated as follows, be approved;

(b)  that the financial framework for 2015/2016 – 2016/2017 as detailed below be noted;

·         2015/16 £3.879m

·         2016/17 £3.250m; and

(c)  that officers continue to review the fixed costs and all other charges to ensure the revenue savings currently required could be delivered over the 3 year period.