Issue - meetings

The Council is requested to consider the Cabinet's recommendations on the Financial Plan, Medium Term Plan for 2009/13, the 2008/09 Budget, related Prudential Indicators and the Treasury Management Strategy (see also Item Nos. 61 and 62 of the Report of the meeting of the Cabinet) and in accordance with Section 30 (2) of the Local Government Finance Act 1992 draft resolutions as to the levels of Council Tax in 2008/09 for the various parts of Huntingdonshire District.

A report by the Head of Financial Services is enclosed.

(Members are requested to note that the information contained in Appendix B  should be treated as provisional at this stage.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos. 61 and 62 of the Report of the Cabinet, the Executive Councillor for Finance, Councillor T V Rogers, addressed the Council on the Financial Plan, Medium Term Plan for 2009/2013, 2008/09 budget and related Prudential Indicators contained in the Treasury Management strategy.  In accordance with Section 30 (2) of the Local Government Finance Act 1992, the Council also considered proposals as to the levels of Council Tax in 2008/09 for the various parts of the Huntingdonshire District. 

In opening the debate, Councillor Rogers reminded Members that the Council continued to balance expenditure on service priorities against the requirement to set a Council Tax.  He made reference to the implications on the budget of variations in interest rates and inflation and acknowledged the contributions made by the Overview and Scrutiny Panels and members of the business community to the budgetary process which had originally commenced in September 2007.

In drawing Members’ attention to the Council’s decision at its meeting in December (Minute No. 47 (a) refers) to support a policy of limiting the increase in the budget requirement to 4.99%, Councillor Rogers explained that since then, alternative financial strategies had been considered.  Given ministerial advice and to avoid the risk of capping, the Overview and Scrutiny Panels and the Cabinet had recommended the adoption of Option B contained in Section 4.10 of Appendix A to the report now submitted which, in their view, offered the best balance between minimising the level of spending adjustment required and the risk of capping in 2008/09.  Councillor Rogers acknowledged that the adoption of this strategy would require further efficiency savings.  He also referred Members to a letter that he and the Leader of the Council had sent to the Minister for Local Government seeking an indication of the principles which the Government would apply when exercising capping powers but to which a reply had yet to be received.

Although suggesting that he thought it unlikely that the Council would be threatened by capping, Councillor Rogers indicated that he foresaw a situation where services would need to be curtailed as the Council’s reserves became depleted.  He urged Members to recognise that the Council had to do all it could to raise revenue by other means such as the imposition of charges for services.  Given that the acceptance of Option B would balance expenditure levels on the wide range of services offered by the Council against the desire to retain an affordable council tax, Councillor Rogers commended the recommendations by the Cabinet to Council as set out in the report of the Head of Financial Services.

In response to a question by Councillor Mrs M Banerjee, Councillor Rogers explained that the proposal to remove the general contingency of £144,000 from the budget would reduce still further the need to identify future spending adjustments, that the contingency provision had not been used for several  ...  view the full minutes text for item 55

With the assistance of a report by the Head of Financial Services to consider the 2008/09 Budget and Medium Term Plan.

subject to further consideration being given by the Director of Commerce and Technology in conjunction with the Executive Councillor for Finance to a possible reduction in the level of the general contingency fund, approved the proposed Budget, Medium Term Plan and Financial Strategy and a Council Tax increase of 4.99% (£5.48) representing a level of £115.39 for Band D properties for 2008/09.

Further to Minute No. 07/75 and by way of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Cabinet were acquainted with a number of variations to the assumptions made previously for the purpose of preparing the draft Financial Strategy, Medium Term Plan (MTP), the Budget and associated level of Council Tax for 2008/09, together with the deliberations of the Overview and Scrutiny Panel (Corporate and Strategic Framework) thereon.

In reviewing the issues involved, Members questioned the desirability or otherwise of reducing the level of the general contingency fund given that there had been no call on it for 3 years. 

Reference having been made to the outcome of consultation with the business community on expenditure proposals and in noting the benefit of rewording para 4.1 to avoid any possibility of misunderstanding, the Cabinet

Recommended

(a)  that, subject to further consideration being given by the Director of Commerce and Technology in conjunction with the Executive Councillor for Finance to a possible reduction in the level of the general contingency fund, the proposed Budget, Medium Term Plan and Financial Strategy appended to the report now submitted be approved; and

(b)  that a Council Tax increase of 4.99% (£5.48) representing a level of £115.39 for Band D properties be approved for 2008/09.

To consider and comment on a report by the Head of Financial Services on 2008/09 Budget and 2009/13 Medium Term Plan, prior to its submission to the Cabinet.

With the aid of a report by the Head of Financial Services (a copy of which appended in the Minute Book) the Panel reviewed the Financial Strategy, Medium Term Plan (MTP) 2009-2013 and the Budget and level of Council Tax for 2008/09 in advance of their consideration by the Cabinet and final determination by the Council.

By way of introduction Councillor Rogers, Executive Councillor for Finance, reminded Members of the process involved in developing the Financial Strategy in the current year. The Director of Commerce and Technology outlined the Government’s grant settlement and its approach to Council Tax levels. Particular attention was drawn to the Government’s continued retention of grant from the Council to mitigate against grant losses elsewhere and which, in 2008/09, would result in a loss of £804,000 to which the Council was entitled under the Revenue Support Grant area cost adjustment.

In response to a question by a Member, Councillor Rogers outlined Executive Councillors’ involvement in developing the proposals contained in the report.  He also referred to the rationale for changing the procedure for approving the release of funding for individual schemes from the MTP which the Panel endorsed.

With regard to the proposed level of Council Tax for 2008/09, the Panel discussed the Government’s expectation in terms of council tax levels and capping and the likely approach taken by other councils. Following discussion on the mechanism by which the Council’s grant was determined, Members expressed support for Option B explained in the report, which represented an increase of 4.99% in Band D equivalent Council Tax in 2008/09.  Having discussed a number of other suggestions for inclusion in the budget, Members also expressed support for the proposed Budget and MTP. Whereupon, it was

RESOLVED

(a)  that the Cabinet be informed of the Panel’s support for the proposed Budget, MTP and Financial Plan as submitted; and

(b)  that the Cabinet be informed of the Panel’s support for an increase of £5.48 (4.99%) in Band D equivalent Council Tax for 2008/09.