Issue - meetings

(Cabinet Members with Special Responsibility Councillors Blamire and Bryning)

Report of Chief Officer (Resources)  -  Report to Follow

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Chief Officer (Resources) which provided an update on the Council’s financial position to help inform development of Cabinet’s budget proposals.  Given that the Local Government Settlement had not yet been received, the report was primarily for information although decisions were sought on some matters.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Policy Framework Context: Corporate Priorities

The Council’s Corporate Plan for 2013/14 retained four priorities:

• Economic Growth
• Health and Wellbeing
• Clean, Green and Safe Places, and
• Community Leadership

It was the intention to fundamentally review these as part of 2014/15 budget planning, in response to expected funding reductions.  There are different ways of achieving this, now or later, once government funding prospects are more certain.  The information in the report should assist Cabinet Members in forming a view on the preferred way forward.

General Fund Revenue Budget – Current Year

An in-depth update of the current year budget has resulted in a draft revised budget of £18.973M for the City Council, representing a projected total net underspending of £846K or 4.3% (2012/13 comparative: £981K, 4.8%).  A more comprehensive budget summary is included at Appendix A and variance analysis is attached at Appendix B to the report. The underspending arises from proactive savings measures, as well as other budgetary changes.  Making savings during the year is an important and accepted element of the Council’s approved financial strategy.

2014/15 Draft Revenue Budget

The first draft of next year’s budget has also been produced, in accordance with Financial Regulations and the Council’s Medium Term Financial Strategy (MTFS).  Currently it stands at £18.513M for 2014/15, as shown in Appendices A and B.  Further information will be provided at the January meeting.

Local Government Finance Settlement

The provisional Local Government Finance Settlement is not expected to be announced until sometime after the Chancellor’s autumn statement, which is scheduled for 5 December 2013. The outcome of the Settlement will have a direct bearing on the Council’s short and medium term planning and the scope or nature of its future priorities. A briefing note will be produced for all members once the settlement has been received and its impact assessed.  It will be reported formally into January’s Cabinet meeting.

Local Taxation

Council Tax Rates and Targets

Alongside the Settlement announcement, Government is expected to confirm its proposals regarding future council tax freeze compensation schemes and council tax referendum thresholds.  Drawing on Government’s Spending Round back in June, a local referendum threshold of a 2% increase is expected.  This fits with the Council’s current MTFS targets.  The offer of council tax freeze compensation grant equivalent to a 1% increase also seems likely, for those councils that freeze council tax in next year (and, separately, the year after).  It would seem that such grant would not continue beyond 2015/16 but this, and other details of the scheme, should become clear once the  ...  view the full minutes text for item 66