The Director of Corporate Services presented her report on the Business Plan Update 2019-23. The Panel noted that this included both items 5 and 6.

The Panel noted that the budget for the Children, Schools and Families Department was balanced for 2019-20 but that there was a large budget gap of £1.8 million of savings still to find for 20-21, with a further £740k to find by 2022/23. The Children Schools and Families department has a lower ratio of savings than other departments.  The Director of Children, Schools and Families explained that work was ongoing to consider savings in all areas of the department but she did not believe that any easy savings would be found.

The Panel noted that three (CSF 2018-11, CSF 2018-12 and CSF 2018-07) of the savings had an equality impact assessment of 3, (meaning that they would have a high impact but mitigation may be possible.) Regarding CSF 2018-07 the panel noted that work with young people who were not in education or training (NEET) would continue and there would be a focus on the most vulnerable young people. The Director of Corporate services said she would circulate the information regarding the categories of result for Equality Impact Assessments.

The Head of Social Care and Youth Inclusion asked the Panel to consider the high level of complexity when making savings across the department. Savings made  in one service area can then create additional pressure in other services, it is important that system is considered as a whole. He also reminded members of the need to consider sensitivities regarding existing post holders.  He reminded Members that the department does benchmark against other authorities and look at different balances.

The Panel noted the work already done regarding saving costs on School Transport and that ideas will be shared with neighbouring boroughs. Officers were asked if they could bring forward any savings, but replied that they would rather carry out cost cutting in a careful and planned way and not make cuts before they were needed.

Councillor Ed Gretton proposed a Motion, this was seconded by Councillor Omar Bush. The motion was:

CYP & Schools Funding Motion – that the Panel approve a recommendation that CYP carry out assessments as soon as possible in advance of and for the purposes of identifying and generating potential savings and support within the 2019/20 Budget and beyond:

·         Shared Services in CYP, to identify which services are not yet shared with other local authorities and recommend which services could potentially be shared, either generally, or in the context of other local authorities already sharing similar types of Children’s’ Services

·         Education Services sold to schools, to identify Services available for sale to schools but which are not fully taken up and bought in by Merton Schools and establish a plan to further promote the provision of such services both across schools in Merton and also potentially to other local authorities

·         Extra Revenue for Schools, to identify ways in which local schools generate extra revenues (e.g. from community use, rent from weekend farmers markets) and circulate a summary guide of best practice examples that all our local schools can consider to support them with their own budgets and financial planning

The panel discussed the Motion and noted that much of this work had been covered by two previous Scrutiny task groups; Shared and Outsourced Services and Commercialisation and Income Generation both completed in 2016.

A vote was taken and the Motion was lost. The Chair asked the Director of Corporate Services to circulate the previous task group reports, and following panel member suggestions agreed that at the appropriate time a further Task Group on these issues could be considered for inclusion in the work programme.

Members asked the Director of Corporate Finance about the figures  regarding depreciation of School buildings. She explained that the figures were based on the CIPFA formula.

Councillor Ed Gretton proposed a further Motion, this was seconded by Councillor Omar Bush. The motion was:

Merton Music Foundation Motion – That the Panel approve a recommendation that CYP find an additional equivalent saving to allow CYP to continue to fund Merton Music Foundation to £25k for 2019/20 in view of the resulting beneficial match funding it would generate, the support by MMF in teaching music to disadvantaged children, and in view of the strong preventive support that music provides as means of combatting mental health problems in young persons

Both the Director of Corporate Services and the Director of CSF asked the Panel to note that there was no money available to continue this funding.

A vote was taken and the motion was lost.

The Chair thanked Officers for their work on this item.