Agenda item

That the Committee would refer its views to Mayor and Cabinet as follows –

·         The Committee recognises the difficult task facing officers in bringing forward cuts proposals, especially in the context of ongoing economic uncertainty and a prolonged period of austerity.

·         Members welcome the comments of the Sustainable Development Select Committee – particularly in relation to the ‘theme D’ asset optimisation proposals. Members would welcome further careful, strategic consideration of the approach to the use of Council assets - in order to maximise both the social and economic benefits for the people of Lewisham.

·         The Committee recommends that – in relation to proposal E-15 (seek corporate sponsorship for festive lights) the initial approach should be to the providers of the Council’s current street lighting private finance initiative.

4.1    Mayor Egan was invited to address the Committee. He noted the extent of the Government cuts faced by the Council over a period of years and the difficulty of responding to the issues caused by the pandemic. He also noted the Council’s resilience in the face of challenges and its priorities.

4.2    Kim Wright (Chief Executive) was invited to address the Committee. She noted the impacts of austerity and of the covid-19 pandemic and highlighted the importance of managing the Council’s finances effectively to achieve the best outcomes for residents.

4.3    Kathy Freeman (Executive Director for Corporate Resources) introduced the budget reductions report - noting the pressures and uncertainties facing the Council as well as the challenges of bringing forward savings proposals in the context of the continued response to the pandemic.

4.4    Kathy Freeman and David Austin (Director of Finance) and Katherine Nidd (Head of Financial Strategy, Planning and Commercial) responded to questions from the Committee – the following key points were noted:

·         It could not be guaranteed that the Council would not have to draw on reserves in the next year – given the uncertainties around the savings proposals and other cost pressures. However, the budget had not been set using reserves.

·         It was recognised that rates of inflation were very volatile – Lewisham had maintained its in line with other London authorities.

·         Festive lighting was not part of the private finance initiative (PFI) for street lighting. Officers would seek reputable corporate sponsors to finance future festive lighting (beginning with the provider of the PFI).

·         Work was taking place to manage overspending and implement the sufficiency strategy in children’s social care.

·         The ratio of agency to permanent social workers in children’s social care had improved but there were still workforce challenges.

·         Work was ongoing to improve the numbers of Lewisham foster carers.

·         The adult social care review was ongoing. There were a number of different work streams considering the delivery of a range of services.

·         Overspending in the Public Realm division had been managed down – and additional savings had been identified for the coming year.

4.5    In Committee discussions the following key points were also noted:

·         The Committee welcomed the comments of the Sustainable Development Select Committee and reemphasised the importance of taking a strategic approach to the management of the commercial estate.

4.6    Resolved: that the Committee would refer its views to Mayor and Cabinet as follows –

·         The Committee recognises the difficult task facing officers in bringing forward cuts proposals, especially in the context of ongoing economic uncertainty and a prolonged period of austerity.

·         Members welcome the comments of the Sustainable Development Select Committee – particularly in relation to the ‘theme D’ asset optimisation proposals. Members would welcome further careful, strategic consideration of the approach to the use of Council assets - in order to maximise both the social and economic benefits for the people of Lewisham.

·         The Committee recommends that – in relation to proposal E-15 (seek corporate sponsorship for festive lights) the initial approach should be to the providers of the Council’s current street lighting private finance initiative.