Decision Maker: Policy and Finance
Decision status: For Determination
Is Key decision?: Yes
Is subject to call in?: No
The Director of Resources submitted a report for members to consider a request from Personnel committee to improve the pay and conditions of staff.
Personnel committee had agreed to the recommendations made subject to budgetary approval and acceptance from the union.
The Director of Resources outlined the options available to committee to fund the recommendations bearing in mind that the outcome of the Draft Local Government Finance Settlement had not yet been received.
She reminded members that as the Section 151 officer, she was required to give the council formal advice on the robustness of the estimates and adequacy of reserves.
She explained that whilst the Council is currently benefitting from significant levels of earmarked reserves it would be possible to fund the costs arising from the pay review from these, however this was not recommended in the long term. She reminded members that the best use of earmarked reserves was to fund one off items eg the capital programme or non-recurring revenue items.
She suggested that cost of the pay review covering the next three years be transferred from the Business Rate Growth reserve and as a matter of priority recurring funding be identified when the outcome of the Draft Local Government Finance Settlement was known.
The Director of Resources also referred to other budget growth items which would need to be considered by members in the budget cycle and also assessed as to whether the Council could afford them.
Members discussed this in some detail.
RESOLVED THAT COMMITTEE:
1. Agree to fund the extra cost by transferring funding of £1,078,000 from the Business Rate Growth reserve to finance the cost over the years 2022/23 to 2024/25 and fund the part year cost from the underspends on salaries due to vacant posts delegating the maximum flexibility on financial planning to the Director of Resources;
2. Identify ongoing sustainable funding for this item once the outcome of the Draft Local Government Finance Settlement is known, and
3. Approve the two decisions above subject to the Union accepting the proposals.
Report author: Averil Crowther
Publication date: 15/11/2021
Date of decision: 09/11/2021
Decided at meeting: 09/11/2021 - Policy and Finance