Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of Chief Officer (Resources)   (Report to follow)

(Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Chief Officer (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 2014/15.

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

–        Regarding council tax, various options are set out at section 9 of the report. 

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

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 early February, prior to the actual Budget Council later that month.

Generally Officer preferred options are reflected in the recommendations, with the exception of council tax.

In view of the level of savings still needed in 2015/16 onwards, the cumulative impact that council tax freezes have, the Council’s current financial strategy, and the fact that the Council is not yet clear about how and when it will achieve a financially sustainable budget, the Officer preferred option for council tax is to retain the existing 2% year on year increase, subject to confirmation of local referendum thresholds.  This preferred option would change only if the Council fundamentally reduces its ambitions regarding service delivery, evidenced through the adoption of a clear statement and strategy for doing so.

From this report, it is clear that real progress has been made in balancing next year’s budget, helping to reduce future years’ shortfalls, and stabilising the capital financing position.  Nonetheless, there is still much more to be done and the prospects for local authorities from 2015/16 onwards remain very challenging, and very uncertain. 

The Council is currently in a fairly strong financial position, however, with significant surplus balances and available reserves.  The savings made so far have helped achieve this position, which in turn gives greater flexibility.

Future financial strategy will depend on how the Council wishes use those funds to support its priorities in a way that does not undermine financial standing. 

For example:

-          The Council could choose to secure early reductions on existing service levels, thereby allowing any surplus funds to be used to support more one-off growth and investment in other areas or new activities.

-          Alternatively the Council could use such funds to help maintain existing services to the public for a limited period.  The need to reduce services at some point in the not too distant future would need to be accepted, although any “efficiency” type measures could still progress.

There is a choice, and ideally the approach adopted should fit with the rationale behind council tax proposals.  In this way, the Council can seek to achieve affordable and deliverable policies and objectives over the medium term.

Councillor Bryning proposed, seconded by Councillor Barry:-

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

Councillors then voted:-

Resolved unanimously:

(1)        That the 2013/14 Revised Budget be referred on to Budget Council for approval, with the net underspending of £363K transferring into Balances.

(2)        That one-off growth for Police Community Support Officers (PCSOs) be included in the budget proposals for 2014/15.

(3)        That Cabinet recommends to Council a 2% council tax increase for 2014/15, with a year on year target increase of 2% for future years, subject to local referendum thresholds.

(4)        That Cabinet recognises that the Council’s current Balances position is healthy and so in principle, it will look to use surplus Balances to help maintain services to the public for a limited period, with this being explored further for consideration at February Cabinet. 

(5)        That the resulting budget position for 2014/15 onwards, as updated for items elsewhere on the agenda, be referred on to Council for initial consideration as well as being presented for scrutiny by Budget and Performance Panel, in order that any feedback can be provided to Cabinet at its February meeting.

Officer responsible for effecting the decision:

Chief Officer (Resources)

Reasons for making the decision:

In accordance with the Constitution, Cabinet is 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.