Agenda item

Report of the City Treasurer and the Director of Policy, Performance and Communications

7.1       Steve Mair, City Treasurer, introduced the period 6 finance report which provided details of the forecast outturn in respect of revenue and capital and projected revenue and capital expenditure by Cabinet Member including key risks and opportunities.  The report also included details in relation to the revenue and capital expenditure for the Housing Revenue Account.

7.2       The Committee was pleased to note that at the end of period 6, the general fund was projecting an underspend of £11.667m.  This was largely attributable to higher than anticipated car parking income as a result of increased income from parking bay suspensions.  In response to questions, the City Treasurer confirmed that any net surplus at the end of the financial year would be dealt with as part of the financial year accounts for 2015/16.  The overspend of £1.051m within the portfolio of the Deputy Leader & Built Environment related to lower CIL payments.

7.3       Members noted that there was a net underspend of £60.487m within the service area capital budgets.  This was offset by £99.351m shortfall for in year capital receipts and contingencies.  Overall, the effect of the two had been to see the project borrowing requirement rise by £38.864m in 2016/17.  Members expressed ongoing concern over the capital budget where funds are not being spent as expected due to slippage on capital projects.  The City Treasurer stated that the City Council was a large and complex business with a budget of over £800 million per annum.  Therefore, it was not unusual given its complexities for slippage to occur in the capital programme.  He explained that to mitigate the challenges the Council had introduced a new business case arrangement for awarding capital programme expenditure to projects.  He also reminded the committee that there was an opportunity for Members to scrutinise next year’s capital programme as part of the Council’s budget proposals for 2017/18.

7.4       Damian Highwood, Strategic Performance Team, introduced the Quarter 2 performance report which presented detailed results for the period April to September 2016 against the 2016/17 Business Plans.  The report provided explanations and commentary in respect of outstanding, good and poor performance including achievements of targets and details of remedial action being taken where appropriate.

7.5       The report included a featured analysis on employment.  This is a key priority throughout City for All, with a commitment to reduce long-term unemployment, those out of work for a year or more, particularly prominent.  The committee was informed that data on long-term unemployment is drawn from people actively claiming workless benefits (Jobseekers Allowance, Employment Support Allowance (ESA) and Lone Parents) from local job centres.  Across all benefits in scope the long-term unemployment count had been reduced by over 5% in the single year February 2015-February 2016.  In response to questions, Mr Highwood explained that the reduction could be attributed to either claimants coming off benefits, being exempt from employment due to disability, moving out of the borough or being deceased.  The committee asked how many people that had found employment in the 12 month period were in part-time vs full-time work.  Mr Highwood explained that as the Council was not permitted access to this data from the Department for Work and Pensions.  Officers could only provide statistics for those jobs brokered by the Council and its partners.

7.6       Members noted that despite the successes a significant challenge remains. Westminster’s stock of long-term unemployed is now 84% ESA claimants, which is the hardest client group to obtain job outcomes.

7.7       In respect of the service performance within Growth, Planning & Housing, the report set out challenges for the regeneration of Ebury Bridge.  Members commented on the need to keep the local community updated on the issues.  Mr Highwood advised that there were plans to re-commission community engagement on any change to the current option and to reassure residents that there remains a plan for regeneration.

7.8       With regard to the service performance within City Management & Communities, members asked questions about the recent failure of the Ringo parking system and what assurances there were if the contractor’s software fails?  Ben Goward, Interim Bi-Borough Director of ICT, explained that the recent disruption was caused by the providers network crashing.  He stated that the Council would expect the provider to incorporate resilience in the event that this occurred.  He was due to have follow-up discussions with the contractor on the matter.

7.9       The Committee noted within Corporate Services that the key service performance indicators around the percentage of temporary agency contractors (TACs) employed for over 12 months was still deteriorating.  The City Treasurer advised that an update on this was provided on a regular basis at Executive Management Team (EMT) meetings.  The new Director of People Services was also following up the issue of the numbers of TACs in each service directorate and the circumstances for their requirement with individual directors.

7.10     The Committee then received an update from Ben Goward on the recent failure of legacy IT infrastructure, IT security issues and the Council’s measures to mitigate these.  The committee also received an update on the rollout of office 365 to members including when training and guidance would be provided.  Mr Goward welcomed feedback from Members on the available Office 365 options for Councillors as well as instructions of how to set these up.  He clarified that training to be provided in January would also cover legal implications.

7.11     In response to questions on the security attack on the Council’s website in March, Mr Goward confirmed that the matter was reported to GCHQ so that it could be investigated.  However, the Council would not receive feedback on the outcome of this. 

7.12     Members also asked questions about the security implications of moving to Cloud computing, in particular whether there was any issue over where such data was stored.  Mr Goward advised that all organisations were moving to this form of computing.  The Council had begun to migrate to this system in 2008-2009.  He stated that wherever the Council procures a Cloud system it states for security reasons where such data can be located. 

7.13     RESOLVED:  That the Period 6 Finance Report and Quarter 2 Performance        Business Plan Report be noted

7.14     ACTIONS:

1.    HRA revenue forecast - provide a breakdown of the sources of ‘other’ income.  What does this consist of?  (Action for: Steve Mair, City Treasurer)

2.    Gangs - Provide details of the latest intelligence around gang activity.  What are the current interventions in place?  Include a passage on work around gangs in future reports.

3.    CCTV - What is the current situation with the use of CCTV so that Members can provide community safety assurance?  The committee stated that feedback from residents is that they cannot understand why the City Council has reduced / lost CCTV surveillance capabilities.

4.    Low Emission Neighbourhood (LEN) funding – What activities are being planned with the LEN money that has been secured?  The committee expressed concern about the increase in air pollution in the City and the need to tackle this.  The committee has requested an analysis of the change in air-quality in parts of the City.  Particular concern was expressed about Embankment, Hyde Park and Marylebone Road.

5.    Unemployment – What is the age breakdown of the remaining Long Term Unemployed by benefit type? How many people helped into work by the Westminster Employment Service (WES) are achieving part-time vs. full time work? What role (if any) could the University Technical College (UTC) have in helping unemployed people?  The committee suggested this could include providing evening classes and enhanced links with employers.

6.    Open Forums – Provide details of current plans for Open Forums.  Members were concerned that it has been almost two years since Area Forums ceased in their areas.

7.    Sexual Health / GUM services- Provide in more detail the process by which providers obtain addresses from service users so that appropriate recharges can be made. 

            (ACTION FOR: Damian Highwood, Strategic Performance Team)