On 2 January 2020 the Executive approved budget proposals for consultation as required with the public, interested parties, staff and the Trade Unions.

The report of the Director of Finance (Document “AQ”) provides the Executive with an update on national announcements and local decisions. It also identifies issues and uncertainties which could still have a bearing on the final size of the funding gap for future financial years.

Executive will need to have regard to this report when considering the recommendations to make to Council at their meeting on 18 February 2020

Recommended -

Executive is asked to note the contents of Document “AQ” and to have regard to the information contained within this report when considering the recommendations to make to Council on a budget for 2020/21 at their meeting on 18 February 2020.

                                                            (James Hopwood – 01274 432882)

Resolved -

That Executive note the contents of Document “AQ” and have regard to the information contained within this report when considering the recommendations to make to Council on a budget for 2020/21 at its meeting on 18 February 2020.

ACTION: Director of Finance                     (James Hopwood – 01274 432882)

Corporate Overview & Scrutiny Committee

On 2 January 2020 the Executive approved budget proposals for consultation as required with the public, interested parties, staff and the Trade Unions.

The report of the Director of Finance (Document “AQ”) provided the Executive with an update on national announcements and local decisions. It also identified issues and uncertainties which could still have a bearing on the final size of the funding gap for future financial years.

Executive would need to have regard to this report when considering the recommendations to make to Council at their meeting on 18 February 2020

The Director of Finance advised members that the final Local Government Settlement had not been received and was expected later in the month.  However he did not anticipate any major changes from the provisional settlement and any changes were expected to be marginal.  He added that since the meeting on 2 January 2020 the Employer’s pension contributions were lower than expected and would contribute to a saving of £800,000 per year.  He noted that it was anticipated that £788,000 of the West Yorkshire Business Rates Pool would be redistributed to Bradford.  He referred to an upward pressure as it was anticipated that the pay settlement could be higher than the budget provision of 2% and no date had been forthcoming on which the award would be settled.

The Leader referred to the lack of certainty from Central Government and noted that the Local Government Association had calculated that under the Fair Funding Formula, Bradford would be £10m less well off and Surrey would be £26m better off and urged the government give this reconsideration.  She added that it was difficult to plan beyond one year as certainty was required that adult and children’s social care would be funded properly.  While respecting the union case for a 10% pay rise she stressed that the authority would not be able to afford this increase if funding was not forthcoming from Government.  The Director of Finance added that a 1% pay rise would cost the authority £2m so funding would be required form the Government if cuts were to be avoided.   

Resolved -

That Executive note the contents of Document “AQ” and have regard to the information contained within this report when considering the recommendations to make to Council on a budget for 2020/21 at its meeting on 18 February 2020.

ACTION: Director of Finance                    

Corporate Overview & Scrutiny Committee