Agenda item

(Cabinet Member with Special Responsibility Councillor Langhorn)

Report of the Head of Financial Services (to follow).

(Cabinet Member with Special Responsibility Councillor Langhorn)

Cabinet received a report from the Head of Financial Services updating Members on the Council’s financial prospects for future years, taking account of last year’s outturn, current year’s monitoring and known or expected changes being introduced by Government.

This report was primarily for Members’ information and therefore no specific options were put forward in the report.

Councillor Langhorn proposed, seconded by Councillor Kerr:-

“(1)      That Cabinet notes:

·         the current position regarding current spending and forecasts for future years, together with the associated  risks and uncertainties;

·         the expectation that the Council’s current council tax targets of no more than 3.75% will need to be significantly less in future, in light of section 4 of the report;

·         in responding to any further specific funding reductions, Service Heads will ensure that appropriate remedial action is taken as soon as possible and in accordance with any delegations, to avoid any situations arising that are contrary to budget, as outlined in section 3.7 of the report;

·         the key issues arising from this review will be reported to Council for information; but that

·         a further update is scheduled to be reported to Cabinet in November, at which time it is hoped that sufficient information will be available for Cabinet to make recommendations to Council regarding new council tax targets, in light of Government’s spending review and any changes to existing capping arrangements

(2)        That Council Business Committee, which will be considering the Council’s response to the government’s consultation on its proposals on replacing capping with local referendums on council tax, be informed of Cabinet’s view of the proposals. This is that the proposals are unnecessarily expensive and do not take into account Councils’ own budget consultation arrangements.”

By way of addendum, Councillor Robinson proposed:-

“(3)      That Cabinet identify options to focus future modelling and scenario planning based on one of these options:-

(a)               equity between statutory and discretionary services

(b)               prioritisation of both statutory and discretionary services to commit to at least the current level of funding

(c)               to focus future growth funding on those statutory and discretionary services that contribute significantly to safer and cleaner streets.”

However, it was noted that there was no seconder to the addendum and, therefore, it was deemed to have fallen.

Councillors then voted:-

Resolved unanimously:

(1)        That Cabinet notes:

·         the current position regarding current spending and forecasts for future years, together with the associated  risks and uncertainties;

·         the expectation that the Council’s current council tax targets of no more than 3.75% will need to be significantly less in future, in light of section 4 of the report;

·         in responding to any further specific funding reductions, Service Heads will ensure that appropriate remedial action is taken as soon as possible and in accordance with any delegations, to avoid any situations arising that are contrary to budget, as outlined in section 3.7 of the report;

·         the key issues arising from this review will be reported to Council for information; but that

·         a further update is scheduled to be reported to Cabinet in November, at which time it is hoped that sufficient information will be available for Cabinet to make recommendations to Council regarding new council tax targets, in light of Government’s spending review and any changes to existing capping arrangements

(2)        That Council Business Committee, which will be considering the response to the government’s consultation on its proposals on replacing capping with local referendums on council tax, be informed of Cabinet’s view of the proposals. This is that the proposals are unnecessarily expensive and do not take into account Councils’ own budget consultation arrangements.

Officers responsible for effecting the decision:

Corporate Director (Finance and Performance)

Head of Financial Services

Reasons for making the decision:

The decision will ensure that Cabinet receives reports back on the key issues it has specified to help Members’ financial planning for the future.

(The meeting adjourned at 11.55am, reconvening at 12pm.)