Members agreed to take items 5 and 6 together.

The Director of Corporate Services, Caroline Holland, introduced the Business Plan Update report, outlining the content and highlighting the new information that Cabinet had received in January. She drew the Commission’s attention to progress that had been made on balancing the budget and the gaps that remained for future years.

Caroline Holland provided additional information in response to questions about the Medium Term Financial Strategy:

·         The Londonwide business rates pool had been beneficial and all the boroughs have signed up to continue next year

·         Revenuisation provisions were made in response to a government change in the categorisation of capital expenditure

·         The corporate provision for inflation is used to meet the costs of those supplies that increase above the predicted level of inflation

·         Officers are looking at a range of options to increase SEND provision in the borough

·         The increase in the pension contribution rate relates to the employer contribution.

Savings proposals for Corporate Services

Members asked questions and made comments about individual savings proposals:

Capital programme

Caroline Holland said that there had been no major changes to the capital programme subsequent to the November report. She advised that there may be a need to use some of the corporate capital contingency fund in 2023/24 for repairs to Bishopford Bridge. Members said that they, and residents, would expect the council to negotiate vigorously with the contractor. Caroline Holland said that all avenues were being explored.

Service plans

Customers, Policy and Improvement – noted that income from Registrars’ event was £655,491 in 2018/19.

Safer Merton – commented that the number of new actionable ASB cases is huge compared to anticipated demand. AGREED to ask the Head of Safer Merton about this when he brings an update report to the Commission’s meeting on 2 April.

Reference to Cabinet

The Chair encouraged members to make a reference to Cabinet. He proposed that this should note that there had been a better settlement from government than for some years, join with London Councils in calling for a fair funding settlement that will give certainty for the term of the MTFS to 2023/24, note the need to make prudent provision for the “known unknowns”, and, should there be a favourable outcome, to ask Cabinet to reconsider those savings classed as “high risk” on deliverability and reputation, and most likely to have an adverse impact on vulnerable service users.

Members noted that there were quite a number of  potential funding streams and grants currently under review and said that they wished to take these in the round rather than making a recommendation based on partial information.

A motion was proposed by Councillor Owen Pritchard and seconded by Councillor Nick McLean to ask Cabinet to keep the Commission informed regarding the outcome of government reviews and decision on a number of funding streams that currently remain uncertain. This would include decisions on business rates, the fair funding review, financing of adult social care, addressing the deficit in the dedicated schools grant and the outcome of the comprehensive spending review. Members voted on the motion and it was passed – 8 members voted in favour and 2 abstained.

The Commission therefore RESOLVED to make the following reference to Cabinet:

“To note that central government is undertaking a number of strategic reviews that will have a direct impact on the funding of Merton Council and therefore asks that Cabinet keep the Commission informed upon the outcome of each one, as and when it arrives, with a view to its impact on the council’s medium term financial strategy.”

It is anticipated that Cabinet would provide this information to the Commission through the quarterly financial monitoring reports.