Report of the Scrutiny Budget Review Group on the proposed budget.

Exempt Appendix 1, which contains additional recommendations from Scrutiny to Cabinet, is included at item 15.

Cabinet’s response to the Scrutiny recommendations on the budget will be included in the Briefing Note.

The Chair of the Budget Review Group will present the report and recommendations.

Recommendation: Council is asked to note the recommendations of the Budget Review Group and Cabinet’s response.

Council considered the report and recommendations of the Budget Review Group of the Scrutiny Committee to the Cabinet meeting on 09 February and the Cabinet’s response.

Cllr Fry, Chair of the Budget Review Group, outlined the key findings and recommendations in the report and Cllr Turner outlined Cabinet’s responses.

Both thanked all the officers involved in the budget scrutiny process.

Cllr Landell Mills commented on the report, raising a number of concerns related to the Council-owned companies.

Council resolved to note the report and Cabinet’s responses to the recommendations.

The Committee is asked to consider the Draft Budget Review Group Report, raise any necessary amendments and agree an approved version to submit to Cabinet for response.

This report will be published as a supplement.

Cllr James Fry introduced the report by focussing on the main recommendations. In relation to Floyd’s row there were two recommendations in the light the inability to make full use of it because of the current Covid restrictions and some concerns about the future funding arrangements for it. It was suggested that the savings flowing from the proposal to move to one planning committee should be monitored and, if not achieved, the position should be reversed. It was agreed that the wording of this recommendation should be revised to the effect that there should be consideration of reversing the decision rather than an insistence on doing so. The was a recommendation for a ring fenced trading account for the covered market given the significant resource dedicated to its upkeep, promotion etc so that an eye could be kept on its effectiveness. It was being suggested that the funding for Experience Oxfordshire should be increased, that contributions from neighbouring authorities should be sought in parallel with greater promotion of the City as a tourist destination. There was a recommendation that the Council should consider a wider range of asset classes for its investments  than its current focus on commercial property, and which might extend to, for example, renewable energy. It was also suggested that where property did feature as an investment, there should be a focus on property already owned by the Council.

It was noted that revised budget proposals  would be going to Cabinet the following week, these would include a reduction of the sums proposed for capital investment from £53m, to £20m but the substance of the review group’s recommendations remained valid.

The Council’s move towards increasingly digital delivery of its services was seen to be positive and it was recommended that lessons learnt from recent months should not be lost. The potential of letting one or two floors of St Aldate’s Chambers was a source of some concern lest there was insufficient demand (given the amount of space likely to be available elsewhere in the City centre) so it was important to secure the best advice about the creation of flexible workspace to maximise take up. In the event that the overall financial position turns out to be better than expected, then consideration should be given to reinstating grants that might otherwise be lost. The Council’s dwindling reserves should be replenished if and when possible. In the present climate of uncertainty, a mid-year budget update would be desirable.  The ODS budget distinguishes between income which is secure and that which is not, this is a model which it would be useful for OCHL to follow. The final recommendations represented just the ‘tip of an iceberg’.  The Review Group had conducted a forensic review of all the budget proposals in what was a particularly challenging year from a budget point of view.

The Committee confirmed its agreement to the Review Group’s report and delegated finalisation of it to Cllr Fry and the Scrutiny Office.