Agenda and minutes

To receive any apologies for absence.

Apologies were received from Barrie Hatch.

In accordance with the Members’ Code of Conduct, Members are requested to declare any interests orally at the start of the meeting and again immediately before consideration of the matter. Members are reminded to specify the agenda item number to which it refers and whether the interest is of a personal or prejudicial nature. Members are also reminded of the requirements of Section 106 of the Local Government Finance Act 1992 that they should declare and not vote on specified matters if they are two months or more in arrears with their Council Tax payments.

There were no declarations of interest on this occasion.

To consider and approve the minutes of the Finance and Performance Overview and

Scrutiny meeting held on17 April 2012– attached.

Resolved: That the minutes of the meeting held on 17 April 2012 be signed by the Chairman as a correct record.

The Committee to consider an update on performance results for the Year-end/Fourth Quarter 2011/12 and progress against the Corporate Plan commitments for 2011/12.

Ms H Morse, Head of Community Engagement and Accountability, provided the Committee with an overview of the year-end Corporate Performance Report 2011/12. She highlighted areas of performance where performance which had exceeded targets and commented on those which would be carried forward into the 2012/13 Corporate Plan.

In responding to the Committee, the Cabinet Member for Performance highlighted some of the work being undertaken to monitor underperformance within priority areas.

Resolved: That the Committee:

1. Notes the quarterly performance report for the Year end / Fourth Quarter 2011/12.
2. Note the work of the Environment, Sustainability and Community Overview and Scrutiny Committee in monitoring indicators ENV 157b and ENV 157c.
3. Note the action being taken by the authority to improve performance regarding CP 117
4. Note the delay in timescales regarding PGO 361 and acknowledge the positive progress made in supporting structures and arrangements for health partnerships.
5. Note the significant increase in web based transactions monitored by FCS 025 and the full programme of work to support continued improvements in this area.
6. Note the positive outcome of communications with HMRC regarding VAT issues faced by the Achieving for Children proposal as monitored by PGO 830.
7. Note the consideration of the development of the Cultural Services Trust Programme (PGO 786) at a future meeting of the Environment, Sustainability and Community Overview and Scrutiny Committee.
8. Consider a report at the meeting in September 2012 regarding HR002 containing detailed information about work being undertaken to minimise days lost to sickness absence per full time employee.
9. Request that the Environment, Sustainability and Community Overview and Scrutiny Committee continue to monitor closely relevant indicators and statistics (including the suitability of iQuanta data to assist considerations) relating to crime statistics within the Borough.

Opportunity for Scrutiny to consider the overall outturn position for both revenue and capital expenditure for the financial year ended 31^st March 2012, the requests to carry forward unspent budgets and the impact of 2011-12 spending on the Council’s reserves.

Councillor Jaeger addressed the Committee regarding the report. She expressed concern at the under spend of £2 million identified within the Adult and Community Services budget area particularly when services for vulnerable residents had been reconfigured and charges increased in the year. It was her belief that under spent monies should not be transferred to capital projects and instead, reinvested in the service area. In responding to the issues raised, Mr Maidment explained that a detailed report would be going to Health, Housing and Adult Services Overview and Scrutiny Committee. He also explained that in relation to Council Tax benefit changes being discussed in a later report initial analysis suggested that that the impact of such changes would be minimised for vulnerable individuals in receipt of care packages

The Committee received information from Mr M Maidment, Director of Finance and Corporate Services regarding the Provisional Financial Outturn 2011/12. In responding to questions from the Committee, the Deputy Leader and Cabinet Member for Finance and Resources highlighted the financial prudence of under spends and the positive reinvestment of such monies in the authorities Capital Programme.

Following discussion amongst Members, Mr Maidment clarified that further information could be provided regarding use of the £600,000 outlined for dilapidations which he explained would actually be more broadly used to support capacity building within the voluntary sector.

Discussion took place regarding early repayment of monies related to ICT contracts and the resultant financial savings.

With regard to under spends in the Adult and Community Services budget, the Deputy Leader and Cabinet Member for Finance and Resources explained that this was partly as a result of the positive impact of programmes such as reablement.

Resolved: That the Committee:

1. Note the information contained with the Provisional Outturn Report.

To provide Members with details of the outturn position, following regular Budget Monitoring Reports throughout the 2011/12 financial year. Members are requested to review the outturn position, which can inform financial decision making during 2012/13 and budget planning for 2013/14.

The Committee considered the Finance and Corporate Services Directorate Provisional Revenue and Capital Outturn 2011/12.

In response to questioning, Mr M Maidment, Director of Finance and Corporate Services, explained the management of underspends in the area of treasury management. Members were informed that work was ongoing to ensure continuity of the link between the Authority and Richmond Theatre following withdrawal of the financial subsidy.

A discussion took place regarding increased income from customer and client receipts including sale of Oyster card related products in the Council’s Customer Contact Centre.

Resolved: That the Committee:

1. Note the provisional revenue outturn position as detailed in paragraph 4 of the report.
2. Note the provisional capital outturn position as detailed in paragraph 6 of the report.
3. Note the outlook for the service and implications for the Medium Term financial strategy as detailed in paragraphs 8 to 12.

The report is presented to this Scrutiny Committee to aid their understanding of the possible impact on current Council Tax Benefit claimants, other residents and the Council of potential changes to the system and to consider the options available to the Council.

The Deputy Leader and Cabinet Member for Finance and Resources provided an introduction to the context of the report. He explained that legislatively the proposals in existence may change prior to receiving Royal Assent in the Autumn and the area of work was very complex. Work was reported to be ongoing jointly with Boroughs in South West London regarding the development of local schemes to ensure some areas of commonality and avoid duplication of work. Cabinet would receive a report on the matter at the meeting in July 2012.

Following discussion amongst Members, support was noted for the approach to the development being taken by the Deputy Leader and Cabinet Member for Finance and Resources and in particular the cross borough work. Members were keen to ensure the impact of proposals affecting the most vulnerable residents were mitigated as far as possible and the Authority paid particular attention to the Equality Impact of proposals.

Resolved: That the Committee note and recommend Cabinet consider options that include:

1. The unanimous support for the approach taken in developing a local council tax support scheme to replace council tax benefit, particularly with regard to the complexity of the work required, and the starting point of freezing existing allocation levels
2. Modelling the maximum level of support being capped at £30 per week
3. Support be limited to Band E properties
4. Unanimous support for reducing Council Tax exemptions and in particular:

·         That charges should be increased to 1.5 times the council tax on properties which are empty and unoccupied for more than two years

·         That discount for second homes should be reduced to 0%

5. Request that the development of the final scheme be reviewed in the context of all council tax payers in the Borough
6. That the financial cost of collecting unpaid monies, be proportionate and appropriate when compared to the level of monies owed
7. Consultation regarding the scheme be undertaken via Plain English Documentation

This report looks at the options for stand alone budget consultation in relation to the 2013/14 financial year and also examines the possibility of combining the budget questions with the new residents’ survey planned for autumn this year.

The Committee considered a report detailing proposals for budget consultation in relation to the 2013/14 financial year.

Members discussed the benefits of some of the proposed options, including the stratified sample provided SIMALTO (Simultaneous multi-attribute level trade off) and the limitations of certain methods of surveying residents. The Deputy Leader and Cabinet Member for Finance and Resources explained that surveying residents regarding budget proposals annually must be considered within the context of the longer-term view taken to financial planning by Cabinet.

With regard to statutory budget consultees, Mr Maidment, Director of Finance and Resources, informed Members that consultation with Business Rate-Payers in the Borough must be undertaken.

A discussion took place regarding the cost and efficiency benefits of combining budget consultation as part of the All in One survey cycle.

Resolved: That the Committee:

1. Recommend that the budget consultation for the 2013/14 financial year be combined with wider residents surveys including the All in one.
2. Recommend that work be undertaken to ensure that the results of the All in One are as representative of the whole resident population as possible.

The Committee to consider details of the proposed work programme.

Resolved: That the Committee:

1. Note additions to the Workplan as previously agreed during the meeting
2. Include an ICT Services Update Report on the Workplan for consideration by the Committee in January 2013
3. Note the overall programme of procurement scrutiny for consideration by all scrutiny committees as set out at Appendix B.