The Chief Executive presented the report of the Section 151 Officer which appraised the Forum on the budget setting process.  He also outlined the potential impact of budget reductions outlined in the Medium Term Financial Strategy (MTFS) on the Council’s ability to deliver key services.  He clarified the timeline for engagement with Town and Community Councils on the transfer of services.

The Chief Executive reported that the Forum had been advised at its meeting on 21 September 2015 that the Council was experiencing a period of unprecedented financial challenge, facing a forecast funding shortfall of approximately £49m over 4 years.  He stated that the Council in 2016-17 identified budget reductions of £7.477m across a range of services when setting its budget which are currently being delivered. 

He informed the Forum that the Welsh Government had yet to provide indicative allocations regarding the 2017-18 settlement and therefore the Council would continue to work towards a ‘most likely’ scenario of a reduction of -3.2% in the MTFS.  He stated that in the best case scenario, the Council would be required to make savings of over £25m over 4 years, which added to the £34m reductions which the Council has made over the last 4 years, would equate to nearly a quarter of the Council’s net budget.  This would rise to over 30% under the worst case scenario.  He stated that under the most likely scenario, it was highly unlikely that the level of budget reductions can be delivered without changes to the level of scope of discretionary services provided by the Council, which would involve difficult choices having to be made on whether to retain, reduce or remove services. 

The Chief Executive informed the Forum that officers had stressed the need throughout the process to transform services and to look at how the Council spent on schools and social care.  He stated that the Council had the least discretion on spend on schools which during the MTFS period had seen growth.  Schools had been requested to make 1% efficiency savings on schools delegated budgets. 

The Chief Executive informed the Forum that the provisional settlement would not be known until 19 October 2016 and the final settlement would be known on 21 December 2016.  He stated there was a need to find ways of engaging with Town and Community Councils where they may be able to support and work with the Council on meeting budget reductions and to build into precepts. 

A member of the Forum questioned whether schedules of rates for services could be made available to Town and Community Councils to assist them in coming to an informed decision on whether to undertake services on behalf of BCBC.  The Corporate Director Communities informed the Forum that Town and Community Councils could approach the Communities Directorate directly should they require an indication of the cost of services.  The Chief Executive requested that Town and Community Councils come up with proposals on services they could run on behalf of the Council or top up the existing service provided by the Council.  The Chairperson of the Forum highlighted one such example where Cornelly Community Council has agreed to fund the cleaning of the public conveniences at Kenfig Nature Reserve.  A member of the Forum asked whether Town and Community Councils would be required to employ those employed by BCBC in the event of them running services for the Council.  The Corporate Director Communities informed the Forum that the employment of staff would depend on the scale and specifics of requirements of the individual Town and Community Council.  The Chief Executive informed the Forum that some Town and Community Councils could tap into the local community spirit where volunteers may litter pick some areas.  

A member of the Forum expressed concern at the prospect of Town and Community having to increase precepts in order to provide services on behalf of BCBC which could be perceived as a form of double taxation.  A member of the Forum commented that it would be prudent for Town and Community Councils to collaborate with BCBC.  The Chief Executive informed the Forum that the most obvious areas of collaboration would be the maintenance of public realm.  He stated that services could also be taken over by sports groups and not solely by Town and Community Councils.  He also informed the Forum that services such as social care and early intervention could also benefit from collaborative working and there was potential for collaboration with Town and Community Councils on providing activities for young people. 

A member of the Forum commented that discussions on partnership working need to take place now as precepts will be required from Town and Community Councils in January.  The Chief Executive informed the Forum that there may be some constraints which preclude Town and Community Councils from collaborating due to their size, but the Council would wish to have conversations with Town and Community Councils as to what they could put in or contribute.  A member of the Forum highlighted the experience of Brackla Community Council which had taken over some grass cutting and introduced more litter bins. 

A member of the Forum questioned whether other local authorities in Wales had implemented reductions on schools delegated budgets and if so, whether any sanctions had been imposed on local authorities.  The Chief Executive informed the Forum that a number of local authorities had implemented budget reductions on schools delegated budgets and to his knowledge had received no sanctions.

RESOLVED:           That the Forum noted the report.