Council Excellence Overview and Scrutiny Committee Wirral Council 27th September 2011 Part 5 Budget Projections 2012/2015

Ian Coleman referred Cllr Brighouse to paragraph 4.5.1 on IT Services. He said that Cabinet had agreed to savings of £500,000 then £400,000 a year which by year 4 comes to £1.7 million. He said that each year the efficiency investment fund was used, mainly for staffing and needed to be replaced. Cllr Alan Brighouse asked a further question. Ian Coleman gave the example of a Director could need three staff costing £100,000. However these three staff costing £100,000 could lead to a £300,000 saving.

Cllr Brighouse asked about Early Voluntary Redundancy (£3 million)? Ian Coleman said till 2017 and referred to 5 years of pension contributions. Cllr Gilchrist pointed out that Early Voluntary Redundancies can be capitalised. Ian Coleman said they had applied for capitalisation of statutory redundancy pay which was used in 2010/2011. Also people were going in 2011/12. In May they had applied for 2011/12, they had applied for £4 million. There had been an outline agreement, with a detailed proposal going to the Department of Communities and Local Government. There would be a report to Cabinet.

Cllr Ron Abbey asked about the Public Works Board. Ian Coleman said the Treasury had increased the interest rate charged by the Public Works Board by 1%. This meant the cost of borrowing went up. There was a substantial amount of money at a reduced rate, but this was for councils which were housing authorities which doesn’t apply to Wirral as it transferred its housing stock.

Cllr Gilchrist said the report was noted.

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