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 inform Cabinet of the latest position following Council’s initial consideration of the Budget and Policy Framework, and to make recommendations back to Council in order to complete the budget setting process for 2013/14.

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

Cabinet was requested to finalise its preferred revenue budget and capital programme proposals for referral on to Council, using the latest information as set out in the supplementary agenda.

Revenue Budget

As Council had now determined the City Council tax rate for 2013/14, there were no options to change the total net revenue budget for next year (recommended at £19.819M) but Cabinet now needed to put forward detailed budget proposals that added back to that amount.  The Head of Resources (as Section 151 Officer) continued to advise that wherever possible, emphasis should be on reducing future years’ net spending.

Capital Programme

Cabinet might adjust its capital investment and financing proposals to reflect spending commitments and priorities but overall its proposals for 2012/13 and 2013/14 must balance.  Whilst there was no legal requirement to have a programme balanced over the full 5-year period, it was considered good practice to do so, or at least have clear plans in place to manage the financing position over that time. 

In deciding its final proposals, Cabinet was asked also to take into account the relevant basic principles of the Prudential Code, which were:

-          that the capital investment plans of local authorities are affordable, prudent and sustainable, and

-          that local strategic planning, asset management planning and proper options appraisal are supported.

Budget Framework (Reserves and Provisions / MTFS)

Given known commitments, risks and approved council tax targets there was little flexibility in financial terms, but Cabinet could consider different arrangements for approving the use of various reserves, or consider different approaches for addressing the medium term budget deficit.

For General Fund, proposals to be put forward by Cabinet should fit with any external constraints and the budgetary framework already approved.  The recommendations as set out met these requirements; the detailed supporting budget proposals were then a matter for Members.  The report outlined the actions required to complete the budget setting process for 2013/14 and put in place plans for tackling 2014/15 and beyond.

Councillor Bryning proposed, seconded by Councillor Hanson:-

“(1)      That the recommendations, as set out in the report, be approved with the following wording added to ‘the budget proposals as summarised at Appendix A’ on recommendation (1) – “but giving further consideration in relation to three stream waste charging for bins and boxes, prior to Budget Council.”

Councillors then voted:-

Resolved unanimously:

(1)               That subject to confirmation of the Local Government Finance Settlement, the associated Local Referendum Thresholds and any budget amendments arising in the Cabinet meeting, Council be recommended to approve:

-          a General Fund Revenue Budget of £19.819M for 2013/14, resulting in a Council Tax Requirement of £7.274M excluding parish precepts.

-     the budget proposals as summarised at Appendix A to the report; but giving further consideration in relation to three stream waste charging for bins and boxes, prior to Budget Council.

-          the resulting policy on provisions and reserves as included at Appendix B to the report; and

-          the resulting Capital Programme as set out at Appendices C and D to the report.

(2)               That should any minor changes arise as part of Government approving the Settlement, the Leader and Finance Portfolio Holder be given delegated authority to update the budget proposals accordingly.

(3)               That the Leader and Finance Portfolio Holder be given delegated authority to update the Medium Term Financial Strategy based on the principles outlined in section 8 of the report, for referral on to BudgetCouncil.

Officer responsible for effecting the decision:

Head of Resources

Reasons for making the decision:

The decision enables Cabinet to make recommendations back to Council in order to complete the budget setting process for 2013/14.