Agenda and minutes

            Apologies for inability to attend were reported from the Chairman (Councillor D. Dodds) and Councillor Maginness.

            The minutes of the meetings of 9th and 23rd January were taken as read and signed as correct.  It was reported that those minutes had been adopted by the Council at its meeting on 2nd February.

            The Director of Corporate Services submitted the undernoted report which had been prepared in connection with the estimated expenditure of the Council for the year 2009/10:

“Relevant Background Information

      At the Strategic Policy and Resources Committee 9 January 2009 the Director of Corporate Services presented the revenue estimates for 2009/10. The district rate increase to support the revenue estimates was reported as 8.59%.

      At the Strategic Policy and Resources Committee on 23 January 2009 reductions in departmental budgets totalling £1,042,560 were agreed by Members.  Members were also notified of the rates package provided by the Minister of Finance and Personnel. The combined impact on the rates position of these measures is an increase in the district rate of 7.16% which is the equivalent of a 2.96% increase to the domestic ratepayer when the regional rate element is included.

      At the meeting it was agreed that the Chief Executive and Director of Corporate Services should provide the Strategic Policy and Resources Committee on 6 February 2009 with options for further reducing the required increase in the district rate.

      The purpose of this report is to present to Members the options for further cost reductions and to make proposals in relation to advancing the Council’s efficiency programme.

Key Issues

      Operating Context

      Before discussing specific cost reduction options it is firstly important to set them in the context of the overall financial position of the organisation and the economic environment.

      For many years the council through strong financial management has been a cash rich organisation with strong reserves and little borrowing. Major schemes like the Waterfront Hall and the Gasworks were developed without additional burden to the ratepayer. Also the council has invested in top class facilities across the city such as the Grove Well-Being Centre and the Falls Swim Centre. At the same time the council has consistently set a rate below inflation, reduced its base budget by £6.7m and maintained high levels of citizen satisfaction.

      Circumstances beyond the control of the council have served to create a new financial environment for the council. The Minister of Finance and Personnel just recently stated in the Assembly that ‘we are in a position of extreme volatility’and he indicated that there would be tight budgetary constraints over the next 2 years.  The dramatic economic downturn has led to significant losses in income from rates and fees and charges. Indications are that income from rates will not increase over the next couple of years because of the rising number of vacant business properties.  These losses have been exacerbated by claw backs from LPS and the decision last year not to partly fund the City Investment Strategy from the rate. This situation has had the following impacts: the council needs to bolster its reserves quickly; the Capital Programme requires significant loan funding which puts additional pressure on the rate; ways must be found to compensate for the loss of income and at the same time minimise the burden on the ratepayer.

      The combined rate  ...  view the full minutes text for item 2a

            The Committee considered the undernoted report:

“Introduction

      The proposed response to the current Economic Downturn from BCC is presented below. Members were provided with a summary of areas where support could be provided at the Strategic Policy & Resources Committee of 23 January 2009. A more detailed response has now been prepared for Members’ consideration.

Relevant Background Information

      Members are aware that the world’s economy has entered a period of sharp decline and recession and, despite numerous efforts by governments and central banks across the world, the outlook continues to appear gloomy.  The International Monetary Fund (IMF) recently stated that world economic growth would fall to 0.5%, the lowest level since World War II.  Official Government figures also confirmed last week that the UK’s economy is now officially in recession for the first time in nearly two decades.  Business and consumer confidence levels have fallen sharply and unemployment levels are rising with businesses struggling to cope with the tough economic climate and reduced levels of consumer spending. 

      Commentators differ over whether NI will suffer more or less from other UK regions as a result of the economic crisis. Views vary from NI being one of the least vulnerable regions in the UK because of its public sector strength to NI being affected more so as a result of steeper house price declines and the end to the rapid expansion of the retail sector and large-scale property development which NI has been witness to since the mid 1990s. However people across Northern Ireland are already feeling the effects of the ‘credit crunch’ and it is likely that this will continue for the foreseeable future.

      The UK’s Local Government Minister has stated that ‘the new frontline is local with councils leading the response’ and that the recession is a “big opportunity for local government to show local leadership”. Councils in the rest of the UK are being urged to use their well-being powers to tackle the recession. Whilst these powers are not legally in place as yet in NI, the principles behind it can be effected in working with others to find local remedial actions to benefit the locality and to support those most in need.

      BelfastCity Council is committed to responsible leadership during these difficult times. However, it should also be acknowledged that local government has limitations and whilst the downturn creates the opportunity for the Council to demonstrate its relevance, leadership and responsiveness it can only do this within its legal powers framework. A major contribution which Council can make is in working with central government which is where the main counter-cyclical effort lies in a recession.

      Notwithstanding these limitations the Council has already agreed that it must continue to invest in our city to help provide jobs and support the economy and maintain the services that are even more important in times of need. We recognise the difficulties faced by people and businesses in the city in the current climate and will ensure we provide  ...  view the full minutes text for item 2b

            It was reported that, in accordance with Standing Order 55 and the authority delegated to him, the Director of Corporate Services had authorised the appointment of a member of staff who was related to an existing officer of the Council.

            The Committee consideration the undernoted report:

“Relevant Background Information

      Purpose

      To bring to the attention of Members, a consultation by the by the Department for Social Development, Social Security Agency on Delivering a Better Service for Customers and to present for approval a draft response to this consultation.

      Background

      Over the past two years, the Social Security Agency has been conducting a Strategic Business Review into how services are provided within their local office network of Jobs & Benefits/Social Security Offices.  As a result, they have developed proposals to restructure their local operations function to ensure the future delivery of high quality services for customers.  This public consultation document ‘Delivering a Better Service for Customers’ explains the proposed changes.

      Recent correspondence received from the Social Security Agency on 27th January 2009 addressing some of the issues of this consultation document is attached at Appendix one for Members attention.

Summary of the Consultation Document

      Proposal

      In order to provide a better service to customers, the Social Security Agency (SSA) is proposing to make changes to the way services are delivered through its local office network of Jobs & Benefits and Social Security Offices.  It is envisaged that the changes will be introduced on a phased basis over 3 years, starting in October 2009.

      Background

      The Agency currently delivers its services to around 550,000 customers through a network of 35 Jobs & Benefits/Social Security Offices dispersed throughout the main cities and towns in Northern Ireland and through a number of centralised benefit branches.  The local office network is mainly responsible for the administration of Income Support, Jobseekers Allowance, Social Fund, National Insurance Number applications/allocations and the provision of information and advice on the broad spectrum of social security benefits.  The current front office services provided by Social Security Agency staff in local offices, including new claims, national insurance number applications, information and advice and over the counter payments are not affected by the proposed changes.  The proposed changes relate to how these services will be delivered in the future.

      Drivers for Change

      The proposed changes are driven by two main factors:

A)      The Need to Improve, Modernise and Make Services more Accessible for Customers –

          The Agency recognises that a more modern and effective telephony system could provide a major opportunity for increasing customer accessibility to its services.  Independent customer research recently undertaken by PricewaterhouseCoopers, on behalf of the Agency, indicates that there is scope for improvement in the telephony service provided to local office customers.  Feedback from Social Security Agency frontline staff would also suggest that many of the enquiries raised by callers to offices could be dealt with by telephone.

B)      Viable Business Model Going Forward –

          Following an in-depth assessment, the Agency concluded that its staff are spread too thinly across the network and, consequently, its ability to deal with future major changes and continue to provide a high standard of customer service into the future is severely constrained.  Consolidation of the current 74 back?office Income Support, Jobseekers Allowance and  ...  view the full minutes text for item 4a

            The Committee was advised that the Minister for Education had, on 12th January, published a document entitled “Schools of the Future – A Policy for Sustainable Schools”, which sought to ensure that there existed an estate of educationally sustainable schools, planned on an area basis and which met the needs of local communities.

            The basis for the policy originated in December, 2006 with the release of the Independent Strategic Review of Education, the Bain Report, which had published a series of recommendations aimed at securing the longer-term viability of schools in Northern Ireland.  In response to the Bain Report the Department of Education had commenced a consultation exercise on the Schools of the Future Policy, which the Committee had agreed to refer to the Party Groupings on the Council for individual consideration and comment.

            The Policy for Sustainable Schools is the culmination of the aforementioned consultation process and sets out:

·         a Vision for Education;

·         a baseline profile of the current position in regards to school enrolments in Northern Ireland;

·         the policy content for sustainable schools;

·         the education, financial and other factors affecting sustainability, for enrolment trends and costs per pupil;

·         sustainability criteria and indicators; and

·         approaches to addressing sustainability issues, such as amalgamation, clustering and co-operation.

            The document does not make any recommendations or proposals as to the future rationalisation of the school estate such as the closure or amalgamation of schools.  Instead, it sets out a policy framework which is intended to underpin and inform consideration around the sustainability of the school estate.

            The Committee noted the receipt of the aforementioned policy, agreed that a letter be forwarded to the Minister for Education urging her to channel educational resources to those schools identified in Targeting Social Need areas and agreed also that clarification be sought also on how, following the abolition of the Education and Library Boards, how the new Education and Skills Authorities will engage with elected Councillors in terms of school policies, finances and other related matters.