That Full Council:
2.1 Agrees to accept the section 114 (3) report issued by the Section 151 Officer on 29 November 2023 …
2.2 Agrees that the Council take immediate steps to mitigate the forecast 2023/24 overspend through the implementation of the Financial Recovery Plan … including:
o The continuation of the Spend Control Policy introduced by the Section 151 Officer to remain in place until the 31 March 2025 …
o The continuation of actions under the existing Financial Improvement Plan, monitored by the Improvement and Assurance Board, in relation to systems improvement, improved forecasting and income maximisation.
o The review of the capital programme will be carried out as set out …
2.3 Endorses the Section 151 Officer’s intention to seek to secure Exceptional Financial Support from the Department for Levelling Up, Housing and Communities (DLUHC) for 2023/24
2.4 Notes that the setting of a balanced budget for 2024/25 and Medium-Term Financial Plan for 2024/25 to 2027/28, in the context that very significant savings will be required, forms a key part of the Financial Improvement Plan.
The full council meeting heard a range of concerns about how a s114 (3) report came to be issued in November, when there are suggestions that other councils are in worse positions. Maybe being the first of a new wave of councils expected to declare having financial problems in the current year has triggered the Government to say they are minded to send in Commissioners; but it’s the Finance Officer’s call and it has to be respected. Trouble for me was, I’ve kinda been asked to look out for risk management by City Councillors, so before the general debate, I took the opportunity to ask a question about the report – as to whether a separate risk analysis had been done in preparing for the decision. Since I’d not given a heads up I understood the officers’ request for an adjournment; but after 16 minutes they came back to say that the question was not legitimate because it had not sought to clarify the report. Yep, Councillors aren’t getting that 16 minutes back.
(See also the N Post coverage of this episode; an overall write-up is also available.)
Challenged by Cllr. Ethan Radford, the former Conservative in the Independent Group of Clifton Independents and Independent Conservatives did choose to speak – complaining about the pressure on reserves. But they remain the only Nottingham City opposition group to have never moved any amendments to a budget; and have done so twice. But they had no suggestions on what to do about the in-year challenge of £23 million projected overspend.
Cllr. David Mellen, the Leader, did however cite a whole list of assumptions in this year’s spending and next year’s budget that Councillors intend to check. Other points included that the council is statutorily required to provide help for the more people needing care, often via a private sector making more money, and providing for the homeless, and not getting financial support required from national government. We once got a grant of around £127 million from national government, and now get £26 million.
Another uncertainty – although more about next year’s budget – is just what does a Gov’t announcement of an extra £65 million for local government next year actually mean. A simple pro-rata calculation suggests an extra £32 million for Nottingham, but I am waiting for an actual specific Nottingham figure explaining how much and in what manner money is to be provided. I thought this was due on the 19th, but there is just a suggestion that this won’t come until February. (I’ll update this post with actual news when it is properly understood.)
As for my full speech, I explained why I had asked about risk; referred colleagues to the Guardian report which explained the s114 situation well – “Nottingham had been hollowed out” – and again queried why the editor of the Nottingham Post had not been able to grasp it; listed the current impact of the more visible cuts in services on The Meadows; exhorted colleagues to remember the discipline “one council” brings upon us, and thanked both he staff who are carrying on, and the senior staff who had come to help in Nottingham despite knowing the challenges they were to face. (These points are expanded below.)
On the Guardian report –
“Nottingham city council wasn’t reckless. It was hollowed out by austerity”
by Patrick Butler
I chose the following extract –
“The message is simple: expenditure, fuelled by inflation and exploding demand for services, exceeds resources, depleted after years of austerity.
“Its particular crisis is one faced by scores of other local authorities: child protection costs going through the roof, soaring bills for temporary housing caused by booming homelessness, and an implacably growing need for adult social care services and home-to-school transport.”
Cllr. Eunice Regan and I went through concerns about services in The Meadows in the afternoon with our SRDO.
From which –
“Problems with street cleaning – cos we have been hollowed out.
“Problems with street bins after Forest matches – cos we have been hollowed out.
“Wardens not available enough to act on tipping next to a skip – cos we have been hollowed out.
“Partnerships are reluctant to host bids for external funds to renew our Youth Centre – cos they have been hollowed out.
“Community Groups not as impactful as they were – cos they and we have been hollowed out.
“Parking permit schemes delayed – cos we have been hollowed out.
“Community welfare services at risk – cos we have been hollowed out.
“Uncertainty over repairs in parks – cos we have been hollowed out.
“Services the people of The Meadows value, but not defined as statutorily required, at risk, cos we have been hollowed out.”
Some of details regarding these problems will be converted into a e-mail newsletter to community activists later this week.
On thanking staff, I said something along the lines of –
Thanks our staff who have stuck with us during these difficult times.
We may well have asked them to work in ways where they do more whilst we find ways of paying them less.
No doubt they know we are being hollowed out.
Thanks to them, and thanks to all our senior staff who have come to work for us in what was obviously going to be a difficult time.
They will have known we were being hollowed out. But they came anyway. And to them I said thank you.
As for “one council”, I ventured that the best minds would struggle to deal with the extra costs this year alone – £4 million from adult social care; £13 million for extra child care costs; nearly £1 million extra for associated child travel costs; £4 million extra from homelessness.
So why should officers and Councillors beat each other up?
We are being hollowed out.
I WILL SEEK TO UPDATE THIS REPORT WITH ANY RELEVANT POINTS THAT I MIGHT HAVE MISSED.