Issue - meetings

Cabinet will present its Budget and Policy Framework Proposals for the period 2017/18 to 2010/21.

The Cabinet Report for the meeting to be held on 17^th January 2017 and more information on Cabinet's specific proposals will be circulated prior to the meeting.

Councillor Anne Whitehead, Cabinet Member with responsibility for Finance and Revenues & Benefits, presented the City Council’s Budget and Policy Framework Update 2017-21.

The Cabinet Member advised the Panel that the budget proposals had been considered at the meeting of Cabinet on the 17^th January 2017. The Panel was informed that, due to continued cutbacks in funding for local authorities by Central Government’s, the City Council had been forced to budget for large amounts of savings in 2016/17 and beyond. A large number of savings proposals, which included service efficiencies and reductions, income generation and invest-to-save, had being implemented. There was also a small amount of money allocated to growth proposals.  Balanced budgets had been set for 2016/17 and 2017/18, however, the Panel was advised that additional large amounts of savings would need to be made in 2018/19 and beyond.

Councillor Anne Whitehead invited questions from the Panel, Councillors and Stakeholders.

The Panel asked a number of questions regarding Key Performance Indicators (KPI’s) on growth items, strategic reviews and restructuring, how the City Council was promoting the Bay Gateway, Salt Ayre and how this may be affected by the proposed trampoline park in Morecambe. Members also asked questions regarding the Bailrigg Garden Village, the £500,000 reserves in the budget earmarked for economic development and the Community Housing Fund.

Councillors asked a number of questions relating to the Lancashire Enterprise Partnership (LEP), budget saving on street cleansing how these would be achieved and the impacts on the service of additional residential development in the district. Members also asked questions on solar farms, zero based budgeting, borrowing on the Capital Programme, interest payments, business rates and renewable energy schemes.

It was then proposed by Councillor Wilkinson and seconded by Councillor Gardiner:-

“(1) That the report be noted and Councillor Anne Whitehead be thanked for her presentation and attendance at the meeting.

(2)    That more detailed information be provided prior to Budget Council regarding Key Performance Indicators (KPI’s) in relation to new posts proposed as growth items within the Budget Proposals.

(3)    That further information be provided prior to Budget Council regarding any spending plans and/or proposed criteria for using the £500,000 reserve to be earmarked specifically for supporting economic growth.

(4)    That regular updates on Salt Ayre be provided to the Panel as part of quarterly monitoring reporting.”

Upon being put to the vote Members voted unanimously in favour of the proposition, whereupon the Vice-Chairman declared the proposal to be carried.

Resolved:

(1) That the report be noted and Councillor Anne Whitehead be thanked for her presentation and attendance at the meeting.

(2)    That more detailed information be provided prior to Budget Council regarding Key Performance Indicators (KPI’s) in relation to new posts proposed as growth items within the Budget Proposals.

(3)    That further information be provided prior to Budget Council regarding any spending plans and/or proposed criteria for using the £500,000 reserve to be earmarked specifically for supporting economic growth.

(4)    That regular updates on Salt Ayre be provided  ...  view the full minutes text for item 24

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Officer (Resources)   -  (Report to follow)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Officer (Resources) which provided 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 2017/18.

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, two basic options are set out at section 6 of the report.  Other alternative options can be modelled at Cabinet’s request.

-               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 affordable, alongside the development of priorities.  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 in March.

The two-phased budget strategy adopted by Cabinet is considered to be an effective way of managing the main risks of budget affordability and financial sustainability, by allowing more time for prioritisation and planning.

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 future years, the ongoing 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 £5 year on year increase, subject to confirmation of local referendum thresholds.  Although a budget surplus is currently forecast in next year, one-off spending pressures could easily swallow that up.

The Officer 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.

The Council’s financial challenges continue and in order to protect its future viability, it has no real choice other than to focus on balancing its budget for the medium term.  The two-phased budget strategy adopted is in support of this aim, as is the Council’s wider financial strategy.  The approach also allows the Council to respond to new information and developments and this is crucial, given the forthcoming fundamental finance reforms underway and the huge inherent uncertainties that currently exist.

Councillor Whitehead proposed, seconded by Councillor Pattison:-

“That the recommendations, as  ...  view the full minutes text for item 50