Issue - meetings

Cabinet considered the independent Statutory Services Budget Review produced by PwC. In presenting the report, it was noted that Table 17 in the report contained a small error, and that the Savings for Highways and Transport should read £6m and £11m, not £17m and 0 respectively.

It was identified that the report validated the council's own analysis and financial assumptions, and highlighted the scale of the challenge facing the county council.

Resolved: That the report be noted.

Tim Gold and Amanda Newton, PricewaterhouseCoopers (PwC), attended the meeting to present a report on PwC's independent review of the resources needed by the County Council to deliver its statutory services.  PwC had been appointed to undertake a review of the Council's business and operating model, and the 'Statutory Services Budget Review' report was the initial stage of their work.

It was noted that the PwC report confirmed that the County Council was not currently in a sustainable financial position, and members were informed that the report would help to press the Council's case to Government. 

The report highlighted that the Council was forecast to have a cumulative deficit of £398m by the end of 201/21 and an in year deficit that year of £148m.  Whilst that was predicted on all savings plans being achieved with no slippage, PwC had identified that a significant proportion of the planned savings were at risk of slippage. Even moving the Council to lower cost comparators across all services areas would not sufficiently close the Council's financial gap over the 4 year period. 

The Committee was informed that PwC would soon commence a second piece of work to look at the options to help address the financial difficulties facing the authority.  It was clear that the Council could not resolve the problems alone and that a very different business and operating model was needed across the public sector.  

Resolved:That therecommendations setout inthe reportto Cabinetbe noted,and thatno additional commentsor suggestedalternative recommendationsbe made.