Agenda item

On behalf of Cabinet, Nadine Muschamp, Chief Officer (Resources), will provide a presentation on Lancaster City Council’s Budget and Policy Framework Proposals for 2015/16. 

More information on Cabinet's specific proposals will only be available following Cabinet on 20^th January 2015. 

Copies of the presentation will be made available at the meeting. 

The Panel received a presentation from the Chief Officer (Resources) on behalf of the Cabinet regarding the Cabinet’s Budget and Policy Framework Proposals for 2015/16.  The Leader of the City Council, and Cabinet Member with Responsibility for Finance were in attendance at the meeting to answer questions.

The Chief Officer (Resources) outlined the Council’s opening Medium Term Financial Strategy targets to the Panel, these were to:

·         Make net savings of £1.0M in 2015/16 and £2.5M in 2016/17;

·         Implement savings in year, where practical;

·         Council tax increases of 1.99% each year, subject to referendum thresholds.

It was reported that this represented a very similar position to the previous years’ position, with the notable difference that use of the £1M of Balances was planned for 2015/16.

The Chief Officer (Resources) advised of the progress made towards the required savings which had been achieved so far. Approximately £600,000 per year had been saved through efficiency savings and managing costs down, and a further £700,000 a year achieved through income generation and improved forecasting. These measures would have some adverse impact on the public and communities but so far major service reductions had been avoided. It was not clear for how long this could be maintained.

The City Council’s proposed future direction was outlined. It was proposed that the City Council continue with the existing corporate priorities with a narrower focus but continued ambition.

The City Council had now adopted the “Ensuring Council” as its ethos for delivering its Corporate Plans.

The Chief Officer (Resources) reported that looking forward the upcoming General and Local Elections in 2015 would cause more short-term uncertainty, but after the elections there was an opportunity for better informed medium term planning.

The Cabinet’s budget proposals were outlined to the Panel and included the following:-

·         Keep council tax increases at 1.99% year on year, subject to local referendum thresholds;

·         Continue with service reviews and change programme with a medium term focus on;

o   Efficiency savings and service “trimming”;

o   Other organisational development;

o   Invest to save initiatives;

o   Major service reductions;

·         Manage any service growth needs though redirection of resources;

·         Use spare balances to help deliver all the above – but be aware that they will soon run out if the ongoing funding gap is not tackled.

The Chief Officer (Resources) invited questions and comments. The following issues were raised: -

·         The City Council’s management of its commercial property portfolio including the cost of running two town halls and the current position regarding St Leonards House, Lancaster;

·         If there were any future plans for more shared services with other local authorities;

·         If there was any evidence of the cost saving resulting from moving homeless services away from the YMCA;

·         What future financial strategy was in place to tackle the current funding gap in the budget;

·         Sustainability in the face of continued budget cuts;

·         The level of Local Council Tax Support (LCTS) provided by the Council;

·         That the processes and costs of appointing an external provider for the annual Lancaster Fireworks Spectacular, which takes place as part of the Light Up Lancaster event, be considered for inclusion on the Panel’s Work Programme at the next meeting. 

It was proposed by Councillor Sowden and seconded by Councillor Scott: -

“(1)That the report be noted and that the processes and costs of appointing an external provider for the annual Lancaster Fireworks Spectacular, which takes place as part of the Light Up Lancaster event, be considered for inclusion on the Panel’s Work Programme at the next meeting.”

Upon being put to the vote Members voted unanimously in favour of the proposition, whereupon the Chairman declared the motion to be carried. 

Resolved:

(1)       That the report be noted and that the processes and costs of appointing an external provider for the annual Lancaster Fireworks Spectacular, which takes place as part of the Light Up Lancaster event, be considered for inclusion on the Panel’s Work Programme at the next meeting.