(Cabinet Member with Special Responsibility Councillor Bryning)
Cabinet received a report from the Head of Financial Services which provided an update on the draft revenue budget and capital programme to inform development of Cabinet’s budget proposals.
The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:
In terms of the budget generally, Cabinet was requested to note the budgetary position but more importantly, take forward a number of actions to help develop a balanced set of budget proposals. In particular, direction was sought for areas in which savings options should be developed.
Depending on the timing of the Settlement, Cabinet might be requested to review council tax targets for future years.
With regard to the more specific recommendations, options were outlined below:
- For Treasury Management and land at Ashbourne Road / Tan Hill Drive, no alternative options were available. This was in view of formal reporting needs, or previous decisions of Cabinet.
- For Lancaster Market reserve, Cabinet could choose to either approve or reject the proposed amendments in the use of the Reserve. If the changes were rejected, this could have an adverse impact on progressing negotiations.
- For Ashton Memorial Steps, Cabinet could choose to support the allocation of funding, or defer a decision until later in the budget process. Given the nature of the memorial asset, works to rectify the steps must be undertaken at some point. For this reason, leaving the steps in their current condition for any length of time was advised against; there was no real benefit in delaying. The Council would be left with an asset that could not be used for its original purpose, together with all the difficulties and potential liabilities that such a situation gave rise to. Clearly this would go against sound asset management practice.
- For the Community Capital Fund, Cabinet could choose to confirm or reject the allocation of funding, or defer a decision until later in the budget process. Cabinet might wish to refer back to the Partnerships report on the November Cabinet agenda. This allocation would support purely discretional spending. Members were advised to consider the LSP’s recommendations and assumed commitments, against other potential uses for these funds.
The Officer preferred options were reflected in the recommendations as set out in the report. Whilst some key elements of budget setting remained uncertain and some good progress had been made by services in making efficiency savings overall, there was still much to be done in balancing the budget. Although Member focus had been on reviewing areas of activity, it was strongly advised that members now needed to balance these, against the existing priorities in the corporate plan. Savings will need to be made in future years, and members will need to address priorities, and options for savings. Although the Council’s balances were substantially higher than originally forecast, any use of balances to create a balanced budget, could be used in the short term basis, officers advised that, even if this balances were to be used, they should only proceed, if ongoing savings proposals were being worked up. It is not considered sustainable to use balances in the medium to long term to address any structural imbalance between the Council’s ongoing spending levels and its expected funding.
Councillor Bryning proposed, seconded by Councillor Smith:-
“That the recommendations, as set out in the report be approved, but that recommendation (5) be deferred until further information on the uses of the Community Capital Fund be obtained.”
Councillors then voted:-
Resolved unanimously:
(1) That Cabinet notes the draft budgetary position for current and future years.
(2) That the mid-year treasury management progress report set out at Appendix C to the report be noted and referred on to Council.
(3) That Cabinet approves the allocation of up to £120K to fund the remedial works for Ashton Memorial Steps, and authorises the Head of Financial Services to update the Revenue Budget and Capital Programme once timing of the works is clear.
(4) That the use of the Lancaster Market Reserve be amended to support incidental costs arising in progressing the decision of Council.
(5) That Cabinet defers the decision regarding the allocation of £100K capital related Performance Reward Grant for a Community Capital Fund and requests further information on what the fund proposal was.
(6) That further to the decision taken at November Cabinet regarding land at Ashbourne Road/Tan Hill Drive for affordable housing, Cabinet notes the s106 receipts position.
(7) That in view of the budget savings needed in future years and Cabinet’s aspirations for supporting growth, the following actions be undertaken:
- in terms of efficiency, all Cabinet Members undertake detailed budget reviews of their portfolio areas to identify any further efficiencies for 2012/13;
- in terms of income generation, Cabinet considers the draft Charging Policy as set out at Appendix E to the report and indicates any areas in which it wishes to consider additional or alternative income generation options;
- in terms of service reduction, Cabinet identifies lower priority areas in which service reduction options should be developed.
(8) That progress against the above actions be reported to the January Cabinet meeting.
Officers responsible for effecting the decision:
Head of Financial Services
Head of Community Engagement
Reasons for making the decision:
Under the Constitution Cabinet is required to put forward policy framework and 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 prior to Budget Council in March.