Agenda item

(George Graham, Deputy County Treasurer, will be attending for this item)

Lisa Kitto presented a detailed report regarding the nature of the financial challenge facing the County Council over the next few years and informed the meeting that the County Council was faced with making savings of around £300m over the next four financial years which was the equivalent to almost 40% of its current budget.

It was noted that the County Council was currently focussing on balancing the 2014/15 budget and this would enable time to be devoted to the huge challenge of downsizing the County Council to a new budget level of £640m by 2017/18.  Members were informed that this reduction needed to be set within the context that between the years 2010 to 2017, the County Council would have had to make savings of over £0.5b. 

It was reported that in response to the increasing financial constraints the County Council had adopted a number of approaches, including a review of planning assumptions and forecasts which had led to a reduction of £17.4m in the level of savings required over the next four years. In addition employees had identified a further saving of £19.1m through a 10% challenge to drive out waste and increase efficiency across the County Council.  A number of areas totalling £17.4m had also been identified where the cost of being in business could be reduced, with no impact on the level or quality of services provided by the County Council to communities.

However, given the scale of the overall challenge facing the County Council it was clear that the level of savings required could not be achieved without impacting on services.  The County Council was therefore undertaking a consultation exercise on a number of policy options and proposals for reshaping the way in which services would be delivered in the future.

In considering the report the following points were raised by members of the Forum:

•  It was clear that the downsizing of the County Council's budget would result in a reduced workforce but the full effect on staffing numbers was not yet known.  Officers agreed to circulate details about the number of staff currently employed by the County Council.

•  A concern was expressed that young and elderly people would be most affected by the budget reductions.  However, it was recognised that the budgets in these areas were larger than most other County Council budgets.

•  Concerns were also expressed about the need to protect and indeed improve services for people suffering from dementia. 

•  A suggestion was made that the County Council should look to have a flatter management structure.

•  It was important to keep the public informed about the reshaping of services.

•  In view of the unprecedented financial situation over the next few years it was vital that the County and Borough Councils worked together to find viable solutions including shared services.  It was felt that some borough councils may not survive and that that the financial pressures facing all local authorities could pave the way for an increased number of unitary authorities across Lancashire.

Members were invited to submit any other suggestions to the County Council to help the authority to reshape its services.