Agenda item

(Cabinet Member with Special Responsibility Councillor Thomas)

Reports of Corporate Director (Finance and Performance), Corporate Director (Community Services) and Head of Financial Services to follow.

(Cabinet Member with Special Responsibility Councillor Thomas)

The Corporate Director (Finance and Performance) and Head of Financial Services submitted a joint report providing Members with information on the latest budget position for current and future years, to allow Cabinet to make recommendations to Council on Council Tax levels for 2010/11.

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 in order to do this.  Outline options are highlighted below, however.

·         With regard to the Revised Budget and resulting overspending, Cabinet could consider other proposals that may influence the Revised Budget for the year.

·         In terms of surplus Balances generally, it could consider retaining balances at a higher level than the minimum.

·         Regarding Council Tax increases, various options are set out at section 8 of the report.  In considering these, Members should have regard to the impact on service delivery, the need to make savings or provide for growth, the impact on future years and the likelihood of capping.

·         With regard to items for noting, no options are presented.

·         With regard to developing 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 in light of the public consultation.  Emphasis should be very much on achieving recurring reductions to the revenue budget, and avoiding any “unidentified” savings targets that undermine the robustness of the budget and financial planning arrangements generally.

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 February, prior to the actual Budget Council in March.

The Officer Preferred options are as reflected in the report’s recommendations.

There is no specific officer preferred option with regard to Council Tax levels.  That said, both the Chief Executive and the s151 Officer would advise against planning for a Council Tax increase much lower than 4% at this time, at least for 2010/11, if Members aim to continue to provide a wide range of services to the public and wish to avoid more potential for major service cuts in future years.  Conversely, they would advise against aiming for an increase of around 5% or above at this time. 

Members asked if the comments from the public, rather than just the statistics shown at Appendix G of the report, could be circulated and were informed that this information would be made available to Cabinet Members shortly.

It was moved by Councillor Thomas and seconded by Councillor Langhorn:-

“That recommendations (1)-(5), as set out in the report, be approved.”

It was proposed by Councillor Langhorn and seconded by Councillor Kerr:

(6)           “That Cabinet recommends a 4% increase in council tax for 2010/2011 to Council and that Cabinet refers the draft budget information and proposals on for Council’s initial consideration.” 

Members then voted:-

Resolved unanimously:

(1)         That Cabinet notes the draft 2009/10 Revised Budget of £24.046M with the assumption that the overspending of £47K be funded from Balances, but that this position is dependent upon receiving an appropriate capitalisation directive from Government in connection with Icelandic investments.

(2)         That Cabinet approves the reassessment of other earmarked reserves and provisions as set out in section 3 of the report.

(3)         That Cabinet notes the position regarding the Local Government Finance Settlement and capping, together with prospects for future years.

(4)         That subject to all the above, Cabinet notes the resulting draft 2010/11 General Fund Revenue Budget of £24.921M, and the indicative spending projections of £26.197M for 2011/12 and £26.597M for 2012/13.

(5)         That Cabinet notes the draft capital investment position from 2009/10 onwards.

Resolved:

(7 Members (Councillors Archer, Ashworth, Blamire, Bryning, Fletcher, Kerr and Langhorn) voted in favour, 1 Member (Councillor Mace) voted against and 2 Members (Councillors Barry and Thomas) abstained)

(6)     That Cabinet recommends a 4% increase in council tax for 2010/2011 to Council and that Cabinet refers the draft budget information and proposals on for Council’s initial consideration. 

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Head of Financial Services

Reasons for making the decision:

Whilst good progress has been made in addressing the 2010/11 budget, the current year remains very uncertain and this could have major implications.  Also, prospects from 2011/12 are uncertain - but bleak.  The decision was made in light of this uncertainty and the Council’s wish to continue providing a range of services.