Caroline Holland introduced the report. The report outlined the updated MTFS up to 2019/20 and identified a budget gap of £15.3 million which is based on current assumptions, ahead of the spending review which is expected in December 2015.

The report also included alternative savings proposed by the CSF department. The Capital programme also included, highlighted the costs related to secondary school expansion.

Councillor James Holmes enquired if savings from previous years had been realised. Caroline Holland confirmed this was the case.

Councillor Maxi Martin sought the views of the Panel and reiterated that difficult decisions had to be made to set a balanced budget.

Yvette Stanley added that £1.9 million of savings would need to be found within the CSF department. This was the lowest weighting in terms of other departments across the council in recognition of the focus on services for vulnerable people.  Adult social care had similar protection but had a much bigger budget to call on so had a marginally higher percentage to find.  The department receives a significant proportion of its budget from the dedicated schools grant and has comparatively low general fund from the council. The department have prioritised statutory duties and focused services on those most vulnerable/at risk in line with the department’s target operating models.

Work has been on-going in the following areas to make savings:

·         Education TOM) – work with schools to maximise income;

·         Early Years TOM – rationalise work in localities; achieve higher income targets for paid for services and  achieve income from increased working with public health;

·         Youth Services – loss of 80% of budget therefore working with alternative providers and funding bodies;

·         Children’s social care – maintain  focus of service on child protection, safeguarding prevention and our looked after an care leavers service and seeking to maintain as much preventative provision as possible within a diminishing resource base.

Councillor James Holmes asked what steps had been taken to review the possibility of outsourcing services and the associated savings that could be generated from this. Councillor James Holmes also asked if means testing or raising council tax had been explored. Councillor Maxi Martin responded that the administration had agreed to freeze council tax that means testing had not been looked into but could be if it was felt to be appropriate and outsourcing isn’t always an option or necessarily going to secure the best outcomes for residents.

Yvette Stanley explained that Merton faces particular challenges in that it is the lowest funded authority in London and that the council work with the voluntary sector to get a batter service/price and have commissioned a number of services from this sector. Some of the services that are already outsourced are:

·         IT services;

·         Project management of school buildings;

·         School meals;

·         Cleaning; and

·         Preventative services from the VCS

Yvette Stanley added that some adoption services have the potential to be outsourced. With regard to means testing, it is difficult to collect small amounts of money from residents but some services are means tested in that they are based on eligibility, which includes income.

Khadiri from MVSC addressed the Panel to comment on the impact of the proposed savings on the voluntary sector. He explained that he understood the council’s constraints and appreciated efforts to discuss the issues by the CSF department with the voluntary sector. He also expressed concerns that funding was being cut at the same time that children and young people’s plan is being launched. The savings proposed run counter to the priorities within the revised Children and Young People’s Plan.

Khadiri explained that, as council budgets and services provided were shrinking, there was a greater reliance and demand upon the voluntary sector. However, the voluntary sector is also facing similar cuts to its funding. The voluntary sector has little reserves to call upon at a time when they should be providing a safety net for residents. The MVSC will continue to work with the council.

The Panel thanked Khadiri for his contribution.

Councillor Katy Neep proposed to the Panel that they consider savings by theme:

Commissioning (alternative saving) – CSF 2014-05 (pg 26)

Commissioning – CSF 2015-04 (pg 61)

Paul Ballatt provided an outline of the saving and the potential impact. He added that the CSF department are working with organisations affected over the next 6 months that will no longer be commissioned by the council from April 2016 and gather information on the families they work with that will be impacted and the council will continue to deliver some specialist services. Advice will be provided to these organisations concerning accessing funding and grants.

Councillor Agatha Akyigyina noted that support t voluntary groups to secure funding was positive and asked how long this support would be offered. Paul Ballatt explained that letters would shortly be sent to organisations, followed up with offers of support for the remainder of the financial year.

Councillor James Holmes asked if we should commission more services form the voluntary sector due to the smaller overhead costs. Yvette Stanley explained that commissioning the local voluntary sector in Merton does not necessarily provide the economies of scale that would enable this to deliver savings.  Larger providers working regionally or London wide can deliver larger economies of scale.  Hence London is exploring this for aspects of adoption and we already do so for SEN and LAC placements. Paul Ballatt explained that the commissioning team are helping the voluntary sector look at alternative sources of funding. Yvette Stanley added that it had identified that over 300 families that would be impacted by this saving. This is way officers had come back asking for less money to be taken out.

Commissioning – CSF2015 – 05/ CSF2015 – 06 (pgs 61/62)

Paul Ballatt outlined the savings proposed. The property and contracts team will be prioritising secondary school expansion going forward. There are fewer capital schemes to progress, therefore less project management is required.

The research and information team will be supporting an SEN review. Economies of scale will be realised in reviewing all outposted posts from within this service.

Councillor Dennis Pearce asked if all projects the team would carry out would be the most significant. Paul Ballatt explained that there was a mix of schemes and that a new secondary school is the largest project and many not be managed by the council.

RESOLVED: Panel agreed the saving.

Schools – CSF 2015-03 (pg 60)

Jane McSherry informed the Panel that the department were looking at other service that could be traded. Councillor Jeff Hanna noted the burden placed on schools budgets already. Jane McSherry explained that Merton Education Partnership and the Schools Forum are working with schools.

RESOLVED: Panel noted the saving.

Children’s Social Care – CSF 2015-01 (pg 27)

Yvette Stanley explained that there were a relatively low number of serious case reviews in Merton and the budget had been historically overstated. Learning and Improvement reviews are on-going. The CSF department have reviewed the MSCB has agreed that any future reviews will be jointly funded with the CCG.

There have been a number of changes within the department and a balance between commissioning and delivery has been sought.

RESOLVED:

Panel noted the saving.

Panel noted the report and did not wish to make any comments to the Commission for consideration.