It was agreed to take agenda items 4, 5 and 6 together.

The Director of Corporate Services, Caroline Holland, outlined the content of the reports. She said that some information was still awaited on business rates and the pension fund valuation. It is expected that revised figures containing the most recent assumptions will be provided to Cabinet on 17 February. She drew attention to the uncertainties for 2016/17 and 2017/18 pending the next government’s comprehensive spending review and that this may pose further financial challenges for the council.

In response to questions, Caroline Holland provided further detail on the assumptions behind estimates for business rates and the relationship between inflation, interest rates and reserves and balances.

Corporate Services savings proposals (pages 30, 32-41)

The Commission discussed each of the Corporate Services savings proposals in turn. Points of clarification, comments made by the Commission and its decision on what to recommend to Cabinet on each is set out in the table below:

RESOLVED: that in its reference to Cabinet, the Commission will highlight the general principle of bringing forward budget savings whenever that can be done, including for the financial year 2014/15.

Safer Merton savings proposal (p45)

RESOLVED: to recommend that Cabinet accept this efficiency saving in the reprocurement of the CCTV maintenance contract (EV01).

Comments and recommendations from the overview and scrutiny panels

RESOLVED: to forward to Cabinet the comments and recommendations made by the overview and scrutiny panels, together with additional comments and recommendations made by the Commission as set out below.

Sustainable Communities Overview and Scrutiny Panel

Agreed to draw Cabinet’s attention to the unanimity of the Sustainable Communities Overview and Scrutiny Panel in rejecting the savings relating to building and development control (EV03-07).

EV02 – parking permit changes

EV11 – on street pay and display charges

There were differing views expressed on the desirability of increasing parking charges. Caroline Holland explained that all departments have been given income targets and have developed alternative savings proposals where targets cannot be met.

One member urged officers to pursue efficiency savings and trading of services as an alternative. She said that it would be helpful to have a report at a future meeting setting out costs and fees for the service so these could be scrutinised in detail.

Another member said that he thought it was appropriate to increase charges in line with inflation, otherwise the real cost would decline. A third member added that the proposal was in line with the council’s policy of encouraging fewer car journeys, with more use of public transport and car sharing.

It was moved and seconded that the Commission should recommend that in principle it disagreed with an automatic raising of charges as a means of closing the budget gap and to urge that alternative means are brought forward, in particular efficiency savings and value added services. A vote was taken, 5 members were in favour, 5 against and the Chair used his casting vote against the motion. The motion fell. Councillor Makin asked that his vote against the motion be recorded.

Another member suggested that parking meter charging periods and costs should be amended so that smaller denomination coins (5p and 10p) are not needed.

A number of members expressed concern about the impact of the increase in the charge for teacher parking permits.

RESOLVED:

To recommend to Cabinet that savings proposal EV02 should be amended to exempt teachers’ parking permits from an increase in charges.

EV10 – Greenpsaces

The Commission noted that the proposal had been rejected on ground of lack of detail last year and so was disappointed to see that this had not been provided.

Children and Young People Overview and Scrutiny Panel

Councillor Dysart said that although the Panel’s reference in relation to CSF01 reflects the general view, he wished his reservations to be placed on record about the impact the savings proposal might have on staffing and on service standards.

Councillor Hanna, the Panel Chair , confirmed that savings proposal CSF03 for further reductions in staffing across the decision had not been approved by the Panel due to lack of detail on the proposal. Commission members concurred that further information should be provided to Cabinet before it makes a decision on this savings proposal.

RESOLVED: to recommend that Cabinet withdraw savings proposal CSF03 due to lack of detail at the present time and re-consider it next year.

Healthier Communities and Older People Overview and Scrutiny Panel

Some concerns were expressed regarding savings proposals for Commissioning and Placements (CH1, 2 and 3). Caroline Holland and Councillor Southgate said that the Director of Community and Housing had assured the panel that he was confident of being able to make the savings.

RESOLVED: to recommend that Cabinet should receive further detail about how savings CH1,2 and 3 will be achieved prior to making a decision.

Capital programme

The Commission scrutinised the capital programme in relation to Corporate Services and Safer Merton:

• Officers undertook to check accuracy/rationale of the zeros against the invest to save items and the asbestos safety works in the corporate services capital programme (page 79) ACTION: Assistant Director of Resources
• A building survey is currently underway and any asbestos related work that is identified would be brought forward in both revenue and capital programmes as required
• Water safety works relate to water tanks, legionella prevention and similar work (page 79)
• The spend on CCTV was noted (page82). Further information was requested on the location of the equipment. ACTION: Director of Environment and Regeneration.

Reserves and balances (page 480)

Caroline Holland made a number of points in response to questions:

• The earmarked reserves for the Outstanding Council Programme Board will include salaries and other costs relating to making business cases for transformation projects and major change programmes
• There will be a reduction over time in the specific project funding required for major transformation work
• The local land charges reserve will be used once there has been a court decision on claims made
• The energy renewable reserve will be used once the contract is let
• The use of the apprenticeships reserve will depend on how the programme is taken forward. It has been successful so far so Caroline Holland anticipates that the reserves will be used.
• The community care reserve has a number of potential calls on it but nothing planned at present

Caroline Holland said that the table is still draft and some figures will change once changes have been made to other parts of the budget. There are some negative figures in the final columns - these are wrong and will be corrected.

In response to a question about the level of reserves, Caroline Holland said that information will be provided on where Merton stands in relation to other authorities. ACTION: Director of Corporate Services

She said that the earmarked reserves had been challenged by the auditors and that the council’s explanations had been accepted.