Stop press+++ As at 30th September 2007, the Council’s Finances seem to be ‘in a bit of a mess’
October 13th, 2007
Councillor David Elderton (Conservative Group Spokesperson and Former Chairman of the Finance and Best Value Overview and Scrutiny Committee of Wirral MBC) has just received the monthly statement from officers concerning Council Fimances. The serious problems arise due to continued lack of Government funding for Council Services.
The problem is nationwide and - unless urgently addressed by Gordon Brown’s government - will lead to major Council Tax increases next year, massive cuts - or both…
This statement - and particularly the one page spreadsheet available on request from David Elderton - was designed by Councillor David Elderton and developed by officers. It is produced at the end of each month and sent to all members of the Cabinet and Finance & Best Value Overview & Scrutiny Committee per the decision of Cabinet on 24 May 2007. From this month a copy is being sent to the Chairs of Scrutiny Committees.
This statement - - was designed by Councillor David Elderton and developed by officers. It is produced at the end of each month and sent to all members of the Cabinet and Finance & Best Value Overview & Scrutiny Committee per the decision of Cabinet on 24 May 2007.From this month a copy is being sent to the Chairs of Scrutiny Committees.
This statement - - was designed by Councillor David Elderton and developed by officers. It is produced at the end of each month and sent to all members of the Cabinet and Finance & Best Value Overview & Scrutiny Committee per the decision of Cabinet on 24 May 2007.From this month a copy is being sent to the Chairs of Scrutiny Committees.
This statement - - was designed by Councillor David Elderton and developed by officers. It is produced at the end of each month and sent to all members of the Cabinet and Finance & Best Value Overview & Scrutiny Committee per the decision of Cabinet on 24 May 2007.From this month a copy is being sent to the Chairs of Scrutiny Committees.
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OVERVIEW
The pressures remain within Adult Social Services and Children & Young People, mainly in respect of care services, and actions continue to have an impact. For Adult Social Services the projection remains at £2.2 million overspend (on a budget of £78 million). For Children’s Services the projected overspend has reduced from £1.3 million to £0.8 million (on a budget of £59 million) essentially through the use of Standards Fund grant.
The pressures remain within Adult Social Services and Children & Young People, mainly in respect of care services, and actions continue to have an impact. For Adult Social Services the projection remains at £2.2 million overspend (on a budget of £78 million). For Children’s Services the projected overspend has reduced from £1.3 million to £0.8 million (on a budget of £59 million) essentially through the use of Standards Fund grant.In terms of service re-engineering (savings commited to prior to the budget being decided by the Labour/Liberal Democrat alliance) 5 departments have still to finalise their Service Re-engineering savings for 2007/08 and the outstanding amounts of £2.286 million are shown in detail in the statement.
The pressures remain within Adult Social Services and Children & Young People, mainly in respect of care services, and actions continue to have an impact. For Adult Social Services the projection remains at £2.2 million overspend (on a budget of £78 million). For Children’s Services the projected overspend has reduced from £1.3 million to £0.8 million (on a budget of £59 million) essentially through the use of Standards Fund grant.In terms of service re-engineering 5 departments have still to finalise their Service Re-engineering savings for 2007/08 and the outstanding amounts of £2.286 million are shown in detail in the statement.Progress has been made in Technical Services but in addition to Adults and Children difficulties are being reported by Regeneration with the department unlikely to achieve the desired savings. Efforts continue to be made that will essentially comprise ‘one-off’ items in the current year.
The Government announcement regarding the capitalisation of the Back Pay element of the Equal Pay settlement was received at the end of September. Wirral’s ability to capitalise should cover the projected settlements and provision has been made in the budget for the borrowing costs of this action.
Decisions made by Cabinet during the year have increased the planned level of departmental spend by £0.3 million. Cabinet also agreed the final report for 2006/07 which showed an underspend that added £0.9 million to the balances. The projected balances at 31 March 2008 are £5.1 million. The balances will be reduced if the pressures do result in overspends and efforts are being made to minimise the impact which would otherwise result in balances being reduced by £3.6 million to £1.5 million.
The above may all sound like mathematical ‘goble-de-gook’ to some - but it represents a major problem for the Council in balancing the books without making substantial reductons in the provision of services. Your Conservative councillors continue to carefully monitor the situation.
Copies of the detailed spreadsheet are available on request by contacting David Elderton by e-mail at ‘davidelderton@wirral.gov.uk’
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