Issue - meetings

(Cabinet Member with Special Responsibility Councillor 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) to provide information on the latest budget position for current and future years, to inform Cabinet’s budget and policy framework proposals and to allow it to make final recommendations to Council regarding council tax levels for 2014/15.

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

Options are dependent very much on Members’ views on spending priorities balanced against council tax levels.  As such, a full options analysis could only be undertaken once any alternative proposals are known and it should be noted that Officers may require more time to do this.  Outline options are highlighted below, however.

–        Regarding council tax, various options are set out at section 9 of the report. 

-        With regard to including savings and growth options to produce a budget in line with preferred council tax levels, any proposals put forward by Cabinet should be considered alongside the development of priorities and public engagement.  Emphasis should be very much on the medium to longer term position.

Under the Constitution, Cabinet is required to put forward budget proposals for Council’s consideration, in time for them to be referred back as appropriate.  This is why recommendations are required to feed into the Council meeting in early February, prior to the actual Budget Council later that month.

Generally Officer preferred options are reflected in the recommendations, with the exception of council tax.

In view of the level of savings still needed in 2015/16 onwards, the cumulative impact that council tax freezes have, the Council’s current financial strategy, and the fact that the Council is not yet clear about how and when it will achieve a financially sustainable budget, the Officer preferred option for council tax is to retain the existing 2% year on year increase, subject to confirmation of local referendum thresholds.  This preferred option would change only if the Council fundamentally reduces its ambitions regarding service delivery, evidenced through the adoption of a clear statement and strategy for doing so.

From this report, it is clear that real progress has been made in balancing next year’s budget, helping to reduce future years’ shortfalls, and stabilising the capital financing position.  Nonetheless, there is still much more to be done and the prospects for local authorities from 2015/16 onwards remain very challenging, and very uncertain. 

The Council is currently in a fairly strong financial position, however, with significant surplus balances and available reserves.  The savings made so far have helped achieve this position, which in turn gives greater flexibility.

Future financial strategy will depend on how the Council wishes use those funds to support its priorities in a way that does not undermine financial standing. 

For example:

-          The Council could choose to secure early reductions on existing service levels, thereby allowing any surplus funds to be used to support more one-off growth and investment in other areas or  ...  view the full minutes text for item 75