Agenda item

Cabinet Member: Leader of the Council, Councillor Hamida Ali

Officer: Interim Chief Executive, Katherine Kerswell

Key decision: no

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1.     Note that the in-year savings options approved at Cabinet and Full Council in September 2020 to reduce the forecast overspend this year and amend the 2020/21 budget have been reviewed and revised as part of the quarter 2 financial monitoring from £27.9m to £10.2m.

2.     Note and recommend to Full Council the latest in-year forecast revenue budget overspend of £30m and the further risks that are likely to materialise which could increase the overspend up to £67m in this financial year.

3.     Consider the additional in-year savings for 2020/21 that will be presented to the extraordinary meeting of Full Council on 1 December 2020 to respond to the S.114 notice.

4.     Consider and recommend to Full Council the savings proposals for consultation as set out in this report for the Medium Term Financial Strategy and 2021/24 and note that consultation will begin on 9 December 2020. To note that the outcome of this consultation will be brought back to Cabinet and Full Council as part of the 2021/22 budget setting process in February / March 2021.

5.     Delegate to the Executive Director of Place authority to commence the statutorily defined and required consultation to review the provision of library services.

6.     Note that the September Cabinet and Full Council noted that an in-year review and future review of the capital programme was underway and that it would be reported back to the November cycle of meetings. Pressure of work has resulted in this report needing to be deferred. It will be reported to the December cycle of meetings.

The Cabinet Member for Culture & Regeneration, Councillor Oliver Lewis, explained to Cabinet that savings were to be sought through the closure of libraries and a change in service provision, and the following had been considered whilst drafting the proposal; footfall, book issues, PC sessions, geography, and the cost of repairs and maintenance. There would be a consultation on the closure of the libraries in Broad Green, Bradmore Green, Sanderstead, Shirley and South Norwood. He noted that the libraries had been invested in since being brought back in-house which had resulted in technological improvements, increases in the book fund, and enhanced partnerships through the Libraries Consortium; however, consolidation was necessary in response to the Council's financial situation. The Cabinet Member for Culture & Regeneration also explained to the Cabinet that COVID-19 had a huge impact on leisure providers, therefore, Croydon Council would be focused on working in partnership with the GLL to enhance sustainability. He explained that this could result in some facilities operating differently to how they did before, and other facilities may cease operation altogether. Croydon would continue to seek a share of the Government's £100m fund and would engage with communities and stakeholders when necessary. In regards to the museums and archive service, the Cabinet Member for Culture & Regeneration explained that they would begin to work closely with the libraries, and would deliver their statutory services jointly. He added that the proposals allowed Croydon to protect its involvement in the London Borough of Culture for 2023.

The Cabinet Member for Families, Health & Social Care, Councillor Janet Campbell, informed Cabinet that the proposed budget would allow the necessary repositioning of Adult Social Care, whilst still delivering the service and meeting the financial targets. Following consultation with residents, the Cabinet Member sought to carefully reduce demands by 5%; Croydon Council would be working closely with internal staff, the community, partners, volunteers, and infrastructure groups to provide alternative services. She assured Cabinet that she would ensure progress was measured, and that the council would spend accordingly to what could be afforded. The Cabinet Member for Families, Health & Social Care added thanks to the council staff and the LGA for their continued commitment to serve the public. She concluded by outlining the eight core focuses in Adult Social Care:

-       To ensure good quality information and advice for people.

-       To work closely and creatively with service residents and families to find alternative ways to care for them.

-       To give residents control over their spending, such as direct payments.

-       Good commissioning of accommodation and care.

-       Working closely with partners, especially in health and the voluntary sector.

-       Conducting an appraisal of in-house services, and establishing how best to use them.

-       Maximising efficiency from our contracts and to renew or end them appropriately.

-       To improve the planning work with young people before they come through to Adults, Services and Transitions.

The Cabinet Member for Sustainable Croydon, Councillor Muhammad Ali, thanked the staff who had been working on the proposals and the staff who worked on delivering vital services to the residents of Croydon. He explained that it was an ongoing process and decisions were being made in discussion, engagement and consultation with relevant stakeholders, unless otherwise stated that decisions had been made previously. He noted that the proposal included plans to streamline the parks maintenance service by merging all current resources for development and maintenance of the various parks into one team. There would also be radical changes in the maintenance regime, including changes to grass cutting and the discontinuation of bedding schemes. He emphasised that partnership working was being looked at, with the Friends of Parks groups, to ensure sufficient support was in place.

The Cabinet Member for Sustainable Croydon further explained there would be changes to parking charges, including future emissions based parking charges. He noted that the borough continued to grow in population and density, so it was crucial to continue reviewing parking charges in order to contribute to the maintenance of the access routes to homes, businesses and other amenities and to reduce the adverse environmental and public health impact associated with non-essential car use. He noted that the number of vehicles registered in Croydon was growing, from 132,000 in 2001, to 148,000 in 2016, and 159,000 in 2019. He highlighted that under the Road Traffic Regulation Act 1984, it did not authorise the council to use parking charges solely to raise revenue. He further explained to Cabinet that the structure requirements under the Environmental Protection Act stated that authorities were legally required to operate one Household Recycling Centre (HRC), but Croydon currently operated three. There was an option to close either one or two of the HRCs, which would generate a saving from the operational and running costs of the sites, and capital funding could be provided to improve the facilities of the remaining HRC site(s).

The Cabinet Member for Housing & Gateway Services, Councillor Jane Avis, explained that the savings proposals for Housing services needed more information before they could be progressed any further. These services were looking at how to reduce demand in temporary and emergency accommodation, and how best to innovate these services. She added that Gateway services had already made some significant savings, and further savings would also be confirmed.

The Leader of the Conservative Group noted that the report included the closure of five libraries and two HRCs, which would have a devastating impact on residents, particularly the most vulnerable, and asked how equity would be achieved for these residents.

In response, the Leader explained that the reports set out new priorities, and sought to replace the existing Corporate Plan with a view ensure the budget gap was addressed. As a result, all services across the council needed to be considered and assurances made to address the structural deficit in order to resolve any ongoing overspends. She further stated that tackling inequality and poverty within the borough had always been a priority of the Administration and, despite facing some difficult budget decisions, would seek to ensure the most vulnerable in the community continued to receive important support from the council and confirmedthis would remain a priority.

The Shadow Cabinet Member for Homes and Gateway Services, Councillor Lynne Hale, stated that in relation to Brick by Brick, the non-payments of 2019-20’s interest of £14m, and the £5m dividend, in addition to the £11m interest due this financial year, amounted to £30m. She noted that this was nearly half of the projected £67m overspend. She questioned why these payments were bring written off, and noted concern that external investigators were needed to identify that Brick by Brick had not been paying what was owed. She further asked which documents previous Cabinet Members were relying on to assure residents and Councillors that repayments were being made.

In response, the Leader of the Council noted that Item 6 on the agenda was “Strategic Review of Companies and other investment arrangements - Brick by Brick Croydon Ltd ("BBB") Shareholder decision” which had a full report and set out the recommendation. She explained that the report highlighted concerns about the oversight from the council in regards to the relationship with its company structures, which was why the strategic review had been commissioned. The report focused on how the council could strengthen their role as a shareholder and made reference to Brick by Brick as a wholly owned company.

The Shadow Cabinet Member for Transport, Environment & Regeneration, Councillor Gareth Streeter, explained that despite the report stating that the increase of the parking charges was not a fiscal measure, he did have concern for the rise of an additional £8m collectively being requested from residents. He questioned what consideration had taken place in regards to the impact on the lower paid and most vulnerable residents as well as local businesses. He noted that following COVID-19, the highstreets needed the council’s support.

In response, the Cabinet Member for Sustainable Croydon clarified that £5m was related to street safety, and primarily came under the schemes which were currently implemented, and gave the example of school streets. He explained that any future decisions on the Low Traffic Neighbourhoods (LTNs) were subject to consultation and mentioned there was a separate report, already agreed by Cabinet, which outlined the breakdown of costs. He noted to the Shadow Cabinet Member that a climate emergency had been declared, and this emergency had been magnified by the public health crisis and the financial crisis. The proposed schemes would address both the climate change impact and air quality impact on residents, and mitigate the rise in vehicles within the borough as it was not currently sustainable.

The Shadow Cabinet Member for Children, Young People & Learning, Councillor Maria Gatland, noted that the auditor’s report recommended the implementation of plans for looked after children and care leavers, and asked how the finances would be controlled within Children’s services. She further asked the Cabinet Member how many families would be impacted by the removal of specialist nursery transport for children with disabilities, and how would this affect the Administration’s priority to tackle inequality and poverty.

The Cabinet Member for Children, Young People & Learning, Councillor Alisa Flemming, agreed with the Shadow Cabinet Member that Children’s services were under pressure financially but were also in need of growth. She explained all services, but in particular regards to children with disabilities and looked after children, would be receiving external challenge, which would help form the budget decisions that were made. She added that historically the service had been underfunded and these areas would be focused on in terms of right sizing the budget where necessary.

The Cabinet Member for Children, Young People & Learning clarified that the provision of specialist nursery transport was a non-statutory service, which was not provided by the majority of other local authorities, and noted a small number of families would be affected. It was confirmed a total of 27 children had been using the service, and there would be individual conversations with all families involved. The saving from not supplying this service would be £113,000 from September 2021 until March 2022, and a further £57,000 from 2022 to September 2023. The Cabinet Member for Children, Young People & Learning explained that each care package would be looked at on an individual basis to ensure they would still meet the needs of the young person moving forward. She reassured the Shadow Cabinet Member that the reviews which take place during the transition point of the young person’s life were focused on the individual and decisions were made carefully and were delivered in a sensitive way. She explained that this was in line with the Administration’s commitment to moving forward as a council and ensured that equality for all was achievable and work to look after the most vulnerable would continue.

The Shadow Cabinet Member for Clean Green Croydon, Councillor Helen Redfern, noted that in September 2020, the Cabinet Member for Clean Green Croydon had approved an extension to the contract with Veolia for management of the HRCs. She explained that over the full 14 year term, some of which was backdated, increased the cost to £20.7m; the benefit of this was to protect the three HRCs whilst improving Croydon’s future negotiating position by bringing the contract dates in line with those of the South London Waste Partnership (SLWP). She asked the Cabinet Member if the contract would be renegotiated as the HRCs were no longer protected and the services were to be reduced. In response, the Cabinet Member for Clean Green Croydon confirmed that all proposals set out in the report would be subject to negotiations with the contractors.

The Shadow Cabinet Member for Culture, Leisure & Sport (Job Share) noted that the Administration had been forced to close or reduce many of the culture aspects in Croydon, and queried how this would affect the London Borough of Culture in 2023, and if the money granted to the London Borough of Croydon from the Mayor of London would have to be returned. He further asked how the research room in the museum would be impacted, as the museum was due to be closed for two years with a plan to re-open with a reduced service.

In response, the Cabinet Member for Culture & Regeneration explained that the proposals had been designed to protect the Borough’s involvement in the London Borough of Culture, and it is an achievement that Croydon can be proud of. He noted that since joining Croydon Council in 2014, he had always championed culture and the arts as part of civic life, and the development in these areas had been great. In regards to the museum, he further clarified that there would be continued access to the archives and the council would work closely with partner organisations to facilitate activities where possible. 

The Leader of the Council delegated authority to the Cabinet to make the following decisions:

RESOLVED: To

1. Note that the in-year savings options approved at Cabinet and Full Council in September 2020 to reduce the forecast overspend this year and amend the 2020/21 budget have been reviewed and revised as part of the quarter 2 financial monitoring from £27.9m to £10.2m.

2. Note and recommend to Full Council the latest in-year forecast revenue budget overspend of £30m and the further risks that are likely to materialise which could increase the overspend up to £67m in this financial year.

3. Consider the additional in-year savings for 2020/21 that will be presented to the extraordinary meeting of Full Council on 1 December 2020 to respond to the S.114 notice.

4. Consider and recommend to Full Council the savings proposals for consultation as set out in this report for the Medium Term Financial Strategy and 2021/24 and note that consultation will begin on 9 December 2020. To note that the outcome of this consultation will be brought back to Cabinet and Full Council as part of the 2021/22 budget setting process in February / March 2021.

5. Delegate to the Executive Director of Place authority to commence the statutorily defined and required consultation to review the provision of library services.

6. Note that the September Cabinet and Full Council noted that an in-year review and future review of the capital programme was underway and that it would be reported back to the November cycle of meetings. Pressure of work has resulted in this report needing to be deferred. It will be reported to the December cycle of meetings.