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 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 2014/15.

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 report.

Revenue Budget

As Council has now determined the City Council tax rate for 2014/15, there are no options to change the total net revenue budget for next year but Cabinet now needs to put forward detailed budget proposals that add back to that amount.  The Chief Officer (Resources) (as s151 Officer) continues to advise that wherever possible, emphasis should be on reducing future years’ net spending.

Capital Programme

Cabinet may adjust its capital investment and financing proposals to reflect spending commitments and priorities but overall its proposals for 2013/14 and 2014/15 must balance.  Whilst there is no legal requirement to have a programme balanced over the full 5-year period, it is 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 is asked also to take into account the relevant basic principles of the Prudential Code, which are:

-          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)

Taking into account the previous resolutions of Cabinet and Council, Cabinet was requested to indicate whether it wishes to allocate £1M from balances to help offset the savings target for 2015/16.  Given known commitments, risks and approved council tax targets there is 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.

Officer preferred option - 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 meet these requirements; the detailed supporting budget proposals are then a matter for Members.

Councillor Bryning proposed, seconded by Councillor David Smith:-

“That the recommendations, as set out in the report be approved, allowing for £1M of balances being allocated to help offset the savings target for 2015/16.”

Councillors then voted:-

Resolved unanimously:

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

-          a General Fund Revenue Budget of £19.585M for 2014/15, resulting in a Council Tax Requirement of £7.600M excluding parish precepts;

-   the budget proposals as summarised at Appendix B to the report, allowing for £1M of balances being allocated to help offset the savings target for 2015/16.

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

-          the resulting Capital Programme as set out at Appendix E 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 as outlined in section 8 of the report, for referral on to Budget Council.

Officer responsible for effecting the decision:

Chief Officer (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 2014/15.