Agenda and minutes

RESOLVED that minutes of the Meeting of the Overview and Scrutiny Business Panel held on 28 June 2022 be confirmed as an accurate record, subject to the following:

Subject to the following amendments:

·       Item 5, Line 6 – to add “and income generation opportunities after “wellbeing in the borough”

·       Item 6 “Scrutiny Report” – to revise

o   Paragraph 4 to state: “Councillor Millbank asked when was the democracy review going to be reviewed?”

o   Paragraph 5 as follows: “Councillor Sorba stated that he was not in favour of task and finish group continuing until there had been a review within the scrutiny setting”

On matters arising, Councillor Chris Best followed up on information provided to the Panel that officers would seek legal advice on the need to undertake formal consultation on a report considered in ‘closed session’ relating to the Leisure Management contract.

There were no interests declared at the meeting.

Councillor Mark Ingleby, Chair of the Panel, informed Members that he had received a request from Councillor Chris Best to address the meeting on decisions taken by the Mayor and Cabinet on 6 July 2022 relating to the budget proposals.

Councillor Best asked questions on aspects of the decisions, which were summarised by the Director of Finance as follows:

1.         General discussion around inflation, which was also considered at the Public Accounts Select Committee prior to the decisions by the Mayor and Cabinet; and

2.         Specific point around some of the adults’ social care activities, in the context of the scale of those budgets for social care across adults and children being close to over two-thirds of the Council’s spending.

The Chair stated that the context for the questions were in relation to:

1.         Statements that the Council’s Medium Term Financial Statement (MTFS) had identified the need to make up to £36m of budget reductions over the next four years, on top of the £3.6 and £0.9m already put forward in 2021/22 and for 2023/24 and 2024/25; and

2.         The Council’s review of adult social care expenditure that had identified opportunities for making savings.

In response, the Director of Finance informed the Panel as follows:

1.            The proposals upon which the Mayor and Cabinet decisions were based were written 7in May/June 2022 after the Government's spending review announcement.  The Council’s financial risks were modelled on assumptions made in January/February 2022.  Thus, in terms of inflation, part of the assumption was that the Council would require services to manage contract negotiations with its suppliers.  How much of that cost would be directly passed onto the Council’s budget rather than dealt with at source would become clearer when considering pay settlements in the public sector context, and perhaps less in relation to running costs.

2.    Discussions and negotiations were on-going, either as the Council retain and negotiate the contracts, or more specifically in adults social care space with the ‘fair cost of care’ consultation that would conclude in the autumn.  So, there is a risk because the inflation figures are low, but the corresponding point would be to accept them at the point of negotiations by building them into the Council’s budget.  To some extent it is a circular challenge because if the Council spends the money, it will overspend this year and then commence by making bigger savings than already forecasted.

3.    The Council have not had the delayed local authority settlement.  The £10m savings that the Council had currently identified would have a few variables, and need to keep the MTFS under review through the autumn.  Thus, the initial focus in this financial year would be to better understand how those costs would feed through for a clearer picture when monitoring.  Monitoring will conclude in the autumn of 2022.

4.    Inflation is clearly around pay and non-pay activities.  There is a risk across all service areas.  If the Council do not negotiate those figures down, it will put up the  ...  view the full minutes text for item 3.

The Head of Overview and Scrutiny reported as follows

·         The select committees have all met and the work programmes they are putting forward are contained in the meeting pack.

·         I think they present a broad and varied programme of scrutiny over the course of the year and are focussed on key policy issues.

·         The panel is asked to review and agree them and make sure they don’t duplicate each other in any way, so a co-ordinated overall programme is agreed.

·         From this meeting onwards, you will be asked to review them at each meeting so progress can be checked.

The following were also noted at the meeting:

-       Housing – Selective licensing item will be brought forward to September

-       CYP – Will be doing more engagement at meetings now we are post pandemic; and will be looking at the cost of living in November (once it has been considered at OSC at a strategic level in September) and is likely to consider things like the household support fund and eligibility for free school meals.

-       HCSC – Will be doing engagement between meetings, including on the Healthcare and Wellbeing Charter

-       SDSC – Has prioritised and tried to stick to no more than two substantive items per meeting but will look to do things between meetings

-       PASC – Chair has met with senior officers in overspending areas in the run up to the next meeting and will keep the Chairs of relevant committees updated (CYP and HCSC)

-       SSCSC – Consideration of the Safe Lewisham Plan will include an update on VAWG strategies