Members AGREED to take this item and agenda item 8 together.

Caroline Holland, Director of Corporate Services, introduced the report and explained the current assumptions on inflation, council tax collection and grants that underpin the medium term financial strategy. She drew the Commission’s attention to the predicted budget gap in future years and the savings targets that had been set for council departments. She added that the October proposals would be going back to Cabinet for approval now that the equality assessments were available.

In response to questions about the size of the budget gap , Caroline Holland said that the prediction was a realistic one, albeit cautious in respect of adult social care funding. The estimate will be re-adjusted if that funding continues. The additional income from the business rates pool is regarded as a one-off and therefore not built in to future years. Caroline Holland added that she continued to challenge officers about items in the capital programme with a view to reducing the impact on the revenue budget.

Councillor Mark Allison, Deputy Leader and Cabinet Member for Finance, added that Merton was not alone in facing a large budget gap and that some other London authorities were in a worse and more pressing financial situation.

Corporate Services proposed savings

Commission members discussed each of the proposed savings:

·         CS01 discretionary rate relief policy (page 107 and 134)

In response to a question, the Director of Corporate Services said she would check if this would be applied on a pro-rata basis.

·         CS02 charge for Blue Badges (page 108 and 138)

The Director explained that the £10 charge applied to the full three year period for which the Blue Badge is valid. She undertook to provide detail of the total number of applications and the number that were successful.

The Commission RESOLVED to endorse these proposed savings.

Comments and recommendations from overview and scrutiny panels

The Chair of the Sustainable Communities Overview and Scrutiny Panel, Councillor Laxmi Attawar, introduced the reference from the Panel on page 186. The Director of Corporate Services alerted the Commission to the fact that any increase in the number of street trees would attract an associated maintenance cost.

The Chair of the Children and Young People Overview and Scrutiny Panel, Councillor Sally Kenny, said that the Panel had raised concerns about the impact that cuts in services would have on vulnerable young people. The Panel noted that there were a growing number of referrals across children’s services nationally, including safeguarding and special educational needs, and the Panel have concerns about the impact this may have locally.

The Chair of the Healthier Communities and Older People Panel, Councillor Peter McCabe, said that the Panel heard concerns expressed by disability groups in the borough about the impact that the proposed savings would have in the medium term upon people who are already at a disadvantage. The Panel felt a great deal of sympathy but were also aware of the extent of the predicted budget gap and the need to make savings.

The Commission RESOLVED to forward to Cabinet the reference from the Sustainable Communities Panel and the comments made by the other two Panels.

The Commission further RESOLVED to express disappointment that Cabinet was not further advanced in identifying proposed savings for future years. However the Commission also recognised the difficult situation that Cabinet faces in relation to the size of the budget gap.

Capital programme

Members asked a number of questions to clarify the purpose of a number of items on the capital programme. The Director of Corporate Services confirmed that the allocation for the Housing Company would be reviewed once the business case has been updated, so that monies may be slipped into the following year.