Agenda item

(Cabinet Member with Special Responsibility Councillor Bryning)

Report of Chief Officer (Resources)

 (Cabinet Member with Special Responsibility Councillor Bryning)

Cabinet received a report from the Chief Officer (Resources) which provided 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 2015/16.

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, two options are set out at section 7 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 affordable, alongside the development of priorities.  Emphasis should be very much on the medium to longer term position.

Under the City Council’s 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 in March 2015.

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 future years, the ongoing impact that council tax freezes have, the Council’s current financial strategy, the reliance on use of Balances, 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 1.99% 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 the report, it is clear that good progress has been made in balancing next year’s budget.

Following the local and national elections this year, however, attention will have to focus on addressing the Council’s medium to longer term financial position.  This will be reflected in the review of the current medium term financial strategy, for consideration by Cabinet next month.

Councillor Bryning proposed, seconded by Councillor Leytham:-

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

Councillors then voted:-

Resolved unanimously:

(1)    That following Cabinet’s decision to approve The Grand Theatre’s funding request included elsewhere on the agenda, the resulting 2014/15 Revised Budget be referred on to Budget Council for approval, with the net underspending transferring into Balances.

(2)    That Cabinet recommends to Council a 1.99% City Council tax increase for 2015/16, together with a year on year target increase of 1.99% being retained for future years, subject to local referendum thresholds.

(3)    That the provisional growth items listed at Appendix A to the report be taken forward as part of Cabinet’s budget proposals.

(4)    That the resulting budget position for 2015/16 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 the 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 Cabinet’s policy and budget proposals are fed into the Council meeting in early February 2015, prior to the Budget Council in March 2015.  Even a 1.99% increase in council tax will require £1m to be transferred from balances to help fund the City Council’s budget.