Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of the Head of Resources   (Report to follow)

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Head of 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 2013/14.

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 might require more time to do this.  Outline options were highlighted below.

–        Regarding council tax, various options were set out at section 8 of the report in the agenda. 

-        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 public engagement.  Emphasis should be very much on the medium to longer term position.

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

In view of the level of savings needed in 2014/15 onwards, the Chief Executive had implemented a freeze on permanent recruitment, to help manage budget pressures until such time as the Council was clear about how and where it would achieve the necessary budget savings.  Accordingly, in terms of council tax his (and the Head of Resources’) preferred option would be for a 2% increase, given the extra impact that a freeze would have on the budget from 2015/16 onwards and the fact that as yet, the Council had no plans in place to tackle its future budget deficit – and establishing those plans would be exceptionally difficult.  This preferred option would change only if the Council fundamentally reduced its ambitions regarding service delivery and this was evidenced through the adoption of clear plans as part of this budget.  As an indication, in future a tax freeze might equate to around 5 or 6 posts.

The provisional Settlement meant that whilst next year’s budget was manageable, the Council had only limited time to tackle the financial challenges expected from 2014/15 onwards.  These challenges would require fundamental changes to the Council’s current service delivery.  Cabinet was advised to have regard to the medium term in determining its budget and council tax proposals for 2013/14, and to avoid adding even more pressure to 2014/15 and beyond.  It was also advised to set out broad plans for tackling the 2014/15 budget.

Councillor Bryning proposed, seconded by Councillor Barry:-

“(1)      That recommendations 1 and 2, as set out in the report, be approved.

(2)        That with regard to the draft budget options set out in recommendation 3:

• That the council tax scenarios as set out in section 8 of the report be forwarded to Council for consideration.
• That the Energy Renewal Strategy listed as a provisional growth item in Appendix A to the report be funded from the Invest to Save Reserve.
• That the following be considered as one year only Growth items: Markets £50K, Cycle Race £10K and PCSOs – Police Authority proposals were awaited on this.
• That cost options be brought forward with regard to lighting the Ashton Memorial
• That Your District Matters be reduced from 3 to 2 copies a year but continue to be produced in hard copy.
• That an Empty Homes Officer post be created and funded for two years.”

Councillors then voted:-

Resolved unanimously:

(1)        That the general budgetary position and future forecasts be noted, including the expected need to make substantial savings from 2014/15 onwards.

(2)        That the 2012/13 Revised Budget of £19.193M be referred on to Budget Council for approval, with the net underspending of £997K transferred into Balances.

(3)        That having considered the draft budget information and options set out in the report the following be agreed:

• That the council tax scenarios as set out in section 8 of the report be forwarded to Council for consideration.
• That the Energy Renewal Strategy listed as a provisional growth item in Appendix A to the report be funded from the Invest to Save Reserve.
• That the following be considered as one year only Growth items: Markets £50K, Cycle Race £10K and PCSOs – Police Authority proposals were awaited on this.
• That cost options be brought forward with regard to lighting the Ashton Memorial
• That Your District Matters be reduced from 3 to 2 copies a year but continue to be produced in hard copy.
• That an Empty Homes Officer post be created and funded for two years.

(4)        That all the above be referred on to Council for their initial consideration in early February, as well as being presented for scrutiny by Budget and Performance Panel in late January.

Officer responsible for effecting the decision:

Head of Resources

Reasons for making the decision:

In accordance with the Constitution, Cabinet was required to put forward 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 early February, prior to the actual Budget Council later that month.