Samantha Spruce presented a follow-up review of Savings Planning to the work undertaken previously,  in a report  issued to the Council in March 2017 with the following proposals for improvement to strengthen financial planning arrangements:

·         ensuring that savings proposals are fully developed and include realistic delivery timescales prior to inclusion in the annual budget; and

·         identifying indicative savings proposals over the period of the Medium Term Financial Plan.

She informed the Committee that the WAO had undertaken work in May and June 2019 to assess the Council’s progress in addressing these proposals for improvement and to consider the effectiveness of the Council’s arrangements for achieving its savings proposals.  She stated that overall, the WAO found that the Council had strengthened arrangements to develop and achieve savings plans, but further work was needed to develop a deliverable medium term financial strategy, particularly for 2020-21 and beyond.  Whilst the Council achieved most of its 2018-19 savings plans it needed to ensure that its strengthened arrangements continue this improved position, and that timescales for delivery need to be as accurate as possible.  No further proposals for improvement had been identified from the follow up. The WAO found that:

·         the process for developing budget savings proposals is now started earlier, giving officers and members greater opportunity to develop and engage on proposals, with particular reference to the role of the Budget Research and Evaluation Panel (BREP);

·         finance officers are becoming more involved in the development of proposals and are challenging accuracy and realism of timescales for delivery;

·         where savings are partially met this is often due to insufficient time being allowed for public consultation or contract negotiations with partners.

·         not all savings proposals are supported by fully costed business cases and delivery plans.

She stated that officers will consider the specific comments and observations outlined in the report and will work to strengthen the processes in place.  The WAO will be reviewing financial sustainability at all Welsh Councils as part of its performance audit work, which will include medium and longer term financial strategies, budget management, management of cost pressures, efficiency and savings plans and levels and use of reserves. She stated that the Council has recently completed and submitted a self-assessment as an integral part of this project.

The Interim Head of Finance and Section 151 Officer informed the Committee that officers are working hard on delivering the savings required in the MTFS and she commended the role of BREP in this.  She stated that she would like to see the development of a 4 year MTFS, however the settlement was not known.  She informed the Committee that it was becoming increasingly difficult to find savings and that £34m was required to be saved over the next 4 years. 

Samantha Spruce of the WAO drew the Committee’s attention to a piece of work which the WAO are currently undertaking on the financial sustainability of local authorities across Wales which would be presented to the Welsh Government.  The Committee expressed concern with the Council having to continually make cuts to services and that pressure should be brought to bear on both the UK and Welsh Governments to increase spending.  In response to a question, the Interim Head of Finance and Section 151 Officer informed the Committee that the Council was some way from the scenario experienced in Northampton Council.   

A member of the Committee commented that not all Members are able to access the same budget information in order to come up with alternative budget proposals.  A request was made that BREP be put on a formal footing.  Samantha Spruce stated that she would make enquiries in relation to other Councils arrangements for holding similar meetings to that of BREP and report back to the Committee.  The Interim Head of Finance and Section 151 Officer informed the Committee that BREP has always been seen by the WAO as good practice.  Its meetings are informal and the Members are bound by confidentiality and its work had been applauded.  It exists primarily to support the Finance officers in preparing a balanced budget. She stated that there is a very varied picture across Wales in terms of sharing information, and that Members at many other Councils do not have access to this level of information and practice that this Council affords at BREP.  She also stated that she is always available for all Members to speak to her in relation to the MTFS and budget. 

RESOLVED:               That the Committee noted the WAO Savings Planning Follow Up Report.