Agenda item

To consider the report of the Cabinet Member for Performance and Resources seeking Members to note year-end forecasts, and progress made against agreed savings targets for the 3rd quarter ended 31st December 2017.

48.1    The Cabinet Member for Performance, Councillor D. Norman, outlined the report and brought to the Committee’s attention that the report was based on a summary of a best estimate. He stated that he was confident matters would move forward. He continued by advising that it was correct to highlight savings that had been made.

48.2    Councillor Norman advised that the forecast for the year end was for a reduction to the General Fund balance of £38k and that this could be greater. He expressed his hope that finance officers’ counsel would be appreciated.

48.3    In response to a query from Councillor Norman as to whether there had been any serious intervening events, the Head of Policy and Resources advised that he expected the position to have improved and could be better than break even.

48.4    Councillor Hilton noted that three portfolios had overspent (regeneration, culture and planning) and further noted the Together Gloucester’s savings target of £1m. He queried whether this suggested that there was further money available.

48.5    Councillor Hilton further highlighted that the income forecast for Eastgate Market had decreased despite high hopes being voiced prior to Christmas (although he did note that such matters could often be seasonal). He also queried how this lower income would be dealt with.

48.6    Councillor Norman stated his belief that the number of traders had remained steady and that the position had been strengthened overall. He also stated that the options for the Council moving its operation should be considered. The Head of Policy and Resources advised that short term borrowing had been undertaken which had resulted in savings on interest.

48.7    Councillor Hilton queried if it was the case that the budget was unsound and the generation of additional income had saved it. Councillor Smith noted the risk that had been identified regarding revised forecasts not being achieved and queried whether this had been achieved. The Head of Policy and Resources advised that planning had expected greater income and was happy to update Members on the figures. In response to a query from Councillor Pullen regarding whether increased planning fees would affect income, the Head of Policy and Resources advised that these funds must be used for the planning department.

48.8    The Chair thanked Councillor Norman and the Head of Policy and Resources for their presentation of the report and for answering queries. The Chair invited the Cabinet Member for Culture and Leisure, Councillor Noakes, to answer queries Members had about her portfolio.

48.9    Councillor Noakes introduced the Culture and Leisure aspect of financial monitoring and stated that there had been an overspend. She stated that a key area which contributed to the overspend was staffing and that some of these staffing costs did not fall into her portfolio. By way of example, she stated that some of the work of the Head of Cultural and Trading Services was in different areas such as markets and Shopmobility.

48.10  Councillor Noakes advised the Committee that approximately 40% of staffing sat in no portfolio. She further advised that there was a 3% vacancy rate and that there were some transition costs. She stated that some of these costs would continue but that most was for the present year only (such as extra staffing costs).

48.11  She further outlined that additional costs had been incurred for works undertaken at the Life Museum. Councillor Noakes informed the Committee that cinema prices had decreased and that these would be reviewed but that there had been a 25% increase in attendance.

48.12  With regard to food and drink provision, Councillor Noakes advised that some staffing issues had been resolved. She stated that there were ambitious targets for income and that the food and drink manager had the ability to focus and deliver.

48.13  Councillor Wilson stated that it appeared there were costs that should have been attributed to other portfolios and shared his view that it would be preferable to adjust this. The Chair stated that it was important to have accuracy in reporting. The Head of Policy and Resources advised that the budget was based on the structure of the Council and that he would look at how this could be improved. He also clarified for Councillor Hansdot that holiday paid was being paid but that there had been a delay which was rectified.

48.14  In response to a query from Councillor Melvin about staffing levels at the Guildhall, Councillor Noakes advised that members of the Visitor Experience team worked across different venues. The Head of Trading and Cultural Services stated that this was not a case of job-sharing but flexible staff. The Head of Policy and Resources noted that the Together Gloucester transformation process delivered this multi-skilled team.

48.15  Councillor Melvin queried why someone who had been prepared to take on operating the café had not been followed up. She also queried why zero-hour staff were more expensive and shared her view that a different classification of staff would overlap in other areas. Councillor Noakes advised that this was not the case as they were employed in a ‘backfill’ capacity.

48.16  Councillor Smith queried why income targets were structured in the way they were if they continued to not be met. The Head of Policy and Resources advised that this was in order to enable the whole service to improve the portfolio. He stated that with the new structure, there was flexibility so the finance team would not be reporting something similar next year. Councillor Noakes stated that food and drink sales were an area where more income could be generated. The Head of Policy and Resources believed the food and drink service to improve by the end of the year.

48.17  Councillor Hilton noted the portfolio having overspent £38k and highlighted the closure of the museum café by way of example. The Head of Cultural and Trading Services stated that the food and drink manager had been filling in other roles rather than development work but that this was to change.

48.18  Councillor Wilson stated his belief that the Council did not employ staff on a zero-hour basis. The Head of Policy and Resources confirmed that they were paid at the living wage on zero-hour contracts.

48.19  The Chair thanked Councillor Noakes and the Head of Cultural and Trading Services for their time and answering Members’ queries.