Agenda item

To consider a progress report on individual risks identified in the Council’s Strategic Risk Register.

The Committee considered a progress report in relation to the individual risks identified on the Strategic Risk Register, specifically in relation to risks regarding Sustainability of the Council. The Committee discussed plans to control and mitigate the risks with the strategic risk owners, Mr Jack, Chief Executive, Mr Towers, Director of Governance and Partnerships and Mr Thompson, Director of Resources.

Mr Thompson reported that nationally there was a general risk over the sustainability of local government in recent years due to the impact of funding cuts. He noted that whilst there was a statutory duty for local authorities to deliver a balanced budget and some specified services, there were a number of services that were currently delivered despite there being no statutory obligation. It was therefore explained to Members that there were budgetary pressures on the ability of the Council to continue delivering non-statutory services.

Mr Thompson reported that despite the repeated cuts to funding, a consistent level of reserves had been maintained throughout the years of austerity, through prudent financial management. He provided Members with details of plans of how the budget would be managed in future, which included the drafting of a six year Medium Term Financial Strategy that should be in place by September 2016.

Mr Towers provided information to the Committee on the sub risk of ‘further devolution of services and increased partnership working’. He explained that as decision-making and funding became more localised through projects such as Better Start and Head Start, as well as the development of the Combined Authority proposal, it was important to ensure appropriate governance structures were in place that enabled a sufficient level of scrutiny.

Mr Towers provided Members with examples of the services currently shared with Fylde Council, which included Human Resources and Civic Support. He also provided the Committee with details of the partnership working arrangements that were in place with the Blackpool Teaching Hospitals Trust and noted the role of the Public Services Board in ensuring that public services were shared where possible, in order to deliver the best value for public money.

Mr Jack provided the Committee with information relating to the sub risk of there being ‘insufficient Central Government funding for Care Act reforms in addition to current constraints on cash limited budgets’. Mr Jack reported that the Government had since deferred the introduction of the policy to cap the costs of care.

The Committee was also provided with details of the implications of the implementation of the living wage on the Adult Social Care budget. Mr Jack advised that the Adult Social Care budgets in northern areas had been adversely impacted by the introduction of the living wage, compared to the impact in southern areas. He provided Members with details of the shortfall between the additional funding received through the Adult Social Care precept and the actual cost of implementing the living wage. He noted that rises to the living wage above inflation would be factored into the Medium Term Financial Plan.

Members noted that a control for the risk was ‘to challenge government assumptions and support lobbying for resource’ and raised questions relating to the form of lobbying for resources that was employed. Mr Jack advised that it would depend upon for which service the lobbying was on behalf of and advised Members that the Leader of the Council had a role on the Local Government Association, which had a potential to make a big impact in relation to lobbying government. Mr Jack noted the requirement to work alongside other public sector partners, for instance those in the Health sector, in order for lobbying on behalf of the local area to have a greater impact. Mr Jack also advised that regular meetings were held with both of the MPs representing Blackpool in order to lobby the Government on a number of issues.

Members raised questions relating to budget overspends and Mr Thompson advised that in areas such as Children and Adult services, budgets were subject to volatile levels of demand, with the result that there was a greater potential for there being overspends within the budgets for those services.

Members discussed the impact upon services from cuts to local authority funding and Mr Jack advised that savings would become harder to find in future and there would be a requirement to consider which services were the most essential for residents.

Background papers: None.