Agenda item

(Cabinet Members with Special Responsibility Councillors Blamire & Bryning)

Report of Chief Officer (Resources)  -  Report to Follow

(Cabinet Members with Special Responsibility Councillors Blamire and Bryning)

Cabinet received a report from the Chief Officer (Resources) which informed Cabinet of the latest position following Council’s initial consideration of the Budget and Policy Framework, and sought recommendations back to Council in order to complete the budget setting process for 2015/16.

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

Cabinet is now requested to finalise its preferred revenue budget and capital programme proposals for referral on to Council, using the latest information as set out in this report.

Budget and Policy Framework

The proposals reflect minimum statutory requirements. Cabinet may request that other policies or strategies be considered as part of the policy framework, but Officers may need more time to ascertain and advise on the implications.

Revenue Budget

As Council has now determined the City Council tax rate for 2015/16, 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 2014/15 and 2015/16 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.

Other Budget Framework Matters (Reserves and Provisions / MTFS)

Given known commitments, risks and approved council tax targets there is little flexibility in financial terms, but Cabinet may consider putting forward alternatives for various reserves, or different approaches for addressing the medium term budget deficit, or consider different virement and/or carry forward limits.

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.

It was proposed by Councillor Bryning, seconded by Councillor Blamire and resolved unanimously:-

“That recommendation (1a) and (1b) as set out in the report, be approved.”

It was proposed by Councillor Bryning, seconded by Councillor Blamire and resolved unanimously:-

“That recommendations (2) and (3) as set out in the report, be approved and that Cabinet considers the use of the one off £84K at a future date prior to Budget Council.”

Councillor Bryning then proposed, Councillor Blamire seconded and it was agreed unanimously:-

“That recommendation (4), as set out in the report, be approved.”

Resolved unanimously:

(1)   That Council be recommended to amend Article 4.01 of the Constitution, to read as follows:

a) “The Policy Framework means the following plans and strategies:

- Corporate Plan

- Community Safety Agreement

- Local Development Plan Documents

- Licensing Act 2003 Policy Statement

- Gambling Act 2005 Policy Statement

- Any other plan or strategy (whether statutory or non-statutory) in respect of which Council from time to time determines that the decision on its adoption or approval should be taken by it rather than the Cabinet.

b) The Budget Framework includes the allocation of financial resources to different services and projects, the setting of virement and carry forward limits for budgets, proposed contingency funds and other provisions and reserves, council tax setting and other local taxation matters, and decisions relating to the Council’s treasury management activities including investments, borrowing limits and the control of capital expenditure. The Budget Framework is set out in the following:

- Medium Term Financial Strategy

- Treasury Management Framework (including relevant policies and strategies)”.

(2)  That Council be recommended to approve a General Fund Revenue Budget of £17.052M for 2015/16, resulting in a Council Tax Requirement of £7.853M excluding parish precepts.

(3) That Council be recommended to approve:

·         the supporting budget proposals as summarised at Appendix A;

·         the resulting position on provisions and reserves as included at Appendix B;

·         the resulting Capital Programme as set out at Appendix C; and

·         budget transfer (virements and carry forward) limits as set out in Appendix E.

(4)  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.

(5)  That prior to Budget Council, Cabinet considers further the use of the estimated £84K one-off grant built into Cabinet’s budget proposals, and this may give rise to a budget amendment.

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 2015/16.