Agenda item

The final report of the evening was presented by the Section 151 Officer, who explained that the purpose of the report was to set out the composition and Terms of Reference for a new Member Working Group, to support Officers and working collaboratively to identify areas for new income generation and further efficiency savings.

It was explained that the latest estimations of the Medium-Term Financial Funding Gap had been reported to the Committee in September 2024. The next substantive review of the Medium-Term Financial Position would take place after the 30 October Autumn Statement announcement, where it was anticipated that further detail would be provided on forecast future Central Government Departmental Spending limits, the future of UK Shared Prosperity Funding and high-level commitments to Business Rates resets and fairer funding settlements. The Council was then expecting a written ministerial policy statement in November which would give some further certainty for 2025-26 funding, and a draft financial settlement just before Christmas. The purpose of the working group would be to work through early solutions to deliver financial sustainability and a balanced budget.

Councillor S. Bunney a non-pecuniary interest in that he was a member of the Audit Committee at Lincolnshire County Council, who used the same auditors as West Lindsey District Council. He commented that there were widespread concerns about the difficulties experienced by some councils and the auditors were clear that this kind of group was good practice to be able to understand those challenges and how to face them. He duly proposed the recommendations as detailed in the report.

During the course of debate, in which Members wholeheartedly supported the premise of the group and the prudence around its inception, there was some consternation voiced regarding the reporting of non-attendance at the group and also the suggestion of the group being known as the ‘Savings Board’. It was expressed that the aim was to achieve sustainability across future financial years, with the opinion given that this would not be achieved by only looking at saving options. It was put to the Committee that the aim of the group would not be to make spending cuts, which was suggested to be the generally understood purpose of ‘savings’, but to also consider income generating opportunities and efficiencies. With this in mind, it was proposed that the first recommendation contained within the report be amended to read:

“Corporate Policy and Resources Committee establish a Financial Sustainability Working Group (to be known as the Sustainability Board)”

In response to the comment regarding non-attendance at meetings, it was explained this was a standard approach with working groups and was intended to ensure consistent membership and input at such meetings. Members were assured that it was well recognised that situations changed, and Councillors may need to alter their involvement, with due process in place to amend membership of working groups as needed.

Further support was expressed for the proposed amendment, with Members suggesting the terminology of a ‘Savings Board’ could be misleading, if in fact financial sustainability was maintained through other means, would it be seen that the group had failed if there had not been direct savings. The Chairman shared his opinion that the use of the term ‘Savings Board’ would be more generally understood and supported by voters and taxpayers.

With the amendment having been seconded, the Chairman took the vote, resulting in a split vote amongst Members, six in favour and six against. The Chairman used his casting vote meaning the proposal to amend the recommendation was lost.

Having had the recommendations as written previously proposed, the Chairman sought a seconder to the proposals, and duly took the vote. It was

            RESOLVED that

a)    a Financial Sustainability Working Group (to be known as the Savings Board) be established; and

b)    the Terms of Reference provided at Appendix 1 be approved.