Decision details

To consider the report of the Cabinet Member for Finance detailing proposed changes to the General Fund Revenue Budget for consultation.

(i)  To note the 2015/16 spending pressures for the General Fund as detailed in paragraph 9 of the report.

(ii)  To note the in-year actions to address the spending pressures as per paragraph 15 of the report.

(iii)  To note the potential in-year reduction in funding for Public Health as set out in paragraphs 16 to 22 of the report.

(iv)  To note the Medium Term Financial Forecast as set out in paragraphs 23 to 38 of the report, including the specific impact on the HRA arising from the recent announcements on Social Housing Rents.

(v)  To note the Revenue Support Grant scenario modelling as set out in paragraphs 26 to 28 and Appendix 1 of the report.

(vi)  To approve the savings proposals, as set out in Appendix 2 to this report and paragraphs 39 to 46 of the report, for consultation.

(vii)  Subject to approval of the recommendations contained within the “Future of Southampton Library Service” report elsewhere on the agenda, to agree the additional saving set out in paragraph 47 of the report.

(viii)  To note the remaining budget shortfall for 2016/17 to 2019/20 as set out in paragraphs 48 to 49 of the report.

(ix)  To consult on the proposed changes to the HR ’Organisational Change Policy’ and the ‘Redeployment Policy’ for compulsory redundancy so that they are brought in line with the contractual notice period. This will lead to a reduction in both the discretionary notice period and the redeployment period from 4 months to a maximum of 3 months (subject to grade and length of service) as set out in paragraph 55 of the report.

(x)  Delegate authority to the Chief Financial Officer (CFO) following consultation with the Cabinet Member for Finance to do anything necessary to give effect to the recommendations in this report.

(xi)  To instruct officers to implement savings at the earliest date to secure benefits in 2015/16.

The recommendations have been put forward to ensure that savings proposals are advanced and policy changes are implemented as early as possible as part of the budget process for 2016/17.

The Executive could choose to only progress savings as part of the annual budget process through the October budget report leading to the setting of the Council Tax in February 2016. However, recognising the importance of seeking to effect change at the earliest opportunity, and to deliver savings in a timely fashion, the Executive are seeking to bring forward a range of savings proposals for early consultation.

This should allow some of the proposals to be implemented in the current financial year and thus deliver in year savings which can contribute to the overall forecast adverse position for 2015/16, and the budget gap for 2016/17 onwards, allowing time to fully consult on other proposals which the Executive wish to implement from April 2016 onwards. Alternative options may be presented to Council at the meeting in November at which a decision on a number of the proposals will be taken after the end of the consultation process. Further options will also be brought forward as part of the October budget report to Cabinet.