Agenda item

Cabinet Member with Special Responsibility Councillor Langhorn)

 

Report of Deputy Chief Executive and Head of Financial Services

 

(Cabinet Member with Special Responsibility Councillor Langhorn)

 

Cabinet received a report from the Deputy Chief Executive and Head of Financial Services to provide information on the policy framework and latest budget position for current and future years, to inform Cabinet’s budget proposals and to allow it to make final recommendations on to Council regarding Council Tax levels for 2011/12.

 

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

 

Options were 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 were known and it should be noted that Officers may require more time in order to do this.  Outline options were highlighted below, however.

 

–        Regarding Council Tax, various options were 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 considering or 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 the medium to longer term position, given that further reductions in revenue funding are expected in future, in line with Government’s Spending Review.

 

-        With regard to items for noting, no options were presented.

 

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.

 

Officer preferred options were reflected in the recommendations, where appropriate.

 

The provisional Settlement was much better than expected, albeit that the Council still faced significant year on year funding reductions; this highlights how much expectations have shifted in recent months.  The Council had been successful in achieving major budget reductions and therefore in the short-term, the Council’s revenue prospects may be easily managed but the medium to longer term must not be overlooked; the challenge of balancing the Council’s budget beyond 2011/12 to deliver its corporate priorities still remained.  With regard to capital, the key risks still centred on completing land sales and reaching decisions on stalled regeneration schemes.

 

Councillor Langhorn proposed, seconded by Councillor Barry:-

 

“That the recommendations, as set out in the report, be approved.”

 

By way of amendment which was accepted as a friendly amendment by the mover and seconder of the original proposition, Councillor Ashworth proposed:

 

“That recommendation 3 be revised and the words ‘partnership working with Lancashire County Council and’ be inserted between ‘with the costs being funded from’ and ‘ongoing savings already approved in developing the budget.’

 

By way of an amendment to recommendation 7, Councillor Robinson proposed:

 

“That recommendation 7 be amended to include that there be an indicative limit to fund grants to outside bodies and the limit set at £500K.

 

However, it was noted that there was no seconder to the proposal and it was therefore declared lost.

 

By way of an amendment to recommendation 9, which was accepted as a friendly amendment by the mover and seconder of the original proposition, Councillor Blamire proposed:

 

“That contributing towards any shortfall in funding of PCSO’s be added to the growth options and proposals in Appendix F.”

 

By way of a further amendment to recommendation 9, which was accepted as a friendly amendment by the mover and seconder of the original proposition, Councillor Fletcher proposed:

 

“That spend to save options be added to options in Appendix F.”

 

By way of a further amendment to recommendation 9, Councillor Robinson proposed:

 

“That £60K be added to the growth options and proposals in Appendix F for developing a car park in Parliament Street, Morecambe.”

 

However, it was noted that there was no seconder to the proposal and it was therefore declared lost.

 

By way of a further amendment to recommendation 9, Councillor Robinson proposed:

 

“That the need for the Regeneration Team be questioned in view of partnership working and any savings from removing the Regeneration Team as a growth option and proposal be used to fund additional environmental enforcement officers.”

 

However, it was noted that there was no seconder to the proposal and it was therefore declared lost.

 

Members then voted on the original motion, as amended.

 

Resolved unanimously:

 

(1)        That Cabinet notes the provisional priorities as agreed at the Cabinet meeting in November 2010 and that these are now recommended to full Council to develop the policy framework for the three year period from 2011 to 2014, as follows: 

•    Economic Regeneration – Energy Coast and Visitor Economy

•    Climate Change – Prioritising reducing the council’s energy costs and increasing income

•    Statutory responsibilities – fulfilling at least our minimum statutory duties - focus on keeping the streets clean and safe

•    Partnership working and Community Leadership – working with partners to reduce costs, make efficiencies and create resilience within the district

•    That Cabinet notes the intension to protect the most vulnerable in our society should also be a thread that runs through all our priorities

(2)        That the Council bring together all partnership working, including work relating to the Lancaster District Local Strategic Partnership, in order to protect key services and provide a single corporate approach to partnership working.

(3)        That the decision to withdraw from the agreement with Lancashire County Council to manage the community pools on their behalf be rescinded and that Lancaster City Council continues to manage the pools on behalf of Lancashire County Council with the costs being funded from partnership working with Lancashire County Council and ongoing savings already approved in developing the budget.

 

(4)        That Cabinet approves the draft 2010/11 Revised Budget of £23.616M for referral on to Council, with the net under spending of £1.124M beingtransferred into Balances.

 

(5)        That Cabinet approves the reassessment of other earmarked reserves and provisions as set out in section 4 of the report and that in principle, future surplus Balances be used to support invest to save schemes, subject to this being considered by Council in due course as part of the Medium Term Financial Strategy.

 

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

 

(7)        That subject to all the above, Cabinet notes the resulting draft 2011/12 General Fund Revenue Budget of £21.331M, and the indicative spending projections of £21.315M for 2012/13 and £22.047M for 2013/14, excluding savings and growth options.

 

(8)        That Cabinet notes the draft capital investment position from 2010/11 onwards.

 

(9)        That Cabinet considers the draft budget information and options as set out in the report in context of its proposed draft priorities and:

 

·         recommends to Council that City Council Tax rates be frozen for 2011/12, subject to Government confirming Council Tax Freeze Grant entitlement (equivalent to a 2.5% tax increase);

 

·         recommends that spend to save options and contributing towards any shortfall in funding of PCSO’s be added to the preferred savings and growth options, with any surplus resources in 2011/12 being transferred into Revenue Balances, and

 

·         refers the updated budget information on for Council’s initial consideration.

 

 

Officers responsible for effecting the decision:

 

Deputy Chief Executive

Head of Financial Services

 

Reasons for making the decision:

 

Under the Constitution Cabinet is required to put forward policy framework and budget proposals for Council’s consideration in time for them to be referred back as appropriate.  The decision will ensure that the policy and budget proposals are fed into the Council meeting in February, prior to Budget Council in March.