Issue - meetings

Councillor I C Bates, Leader and Chairman of the Cabinet presented the Report of the meetings of the Cabinet held on 25th September, 16th October, 6th, 7th and 20th November 2008. 

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In connection with Item No. 42, the Executive Councillor for Finance and Environment, Councillor T V Rogers reported that the Minister of State at the Department for Communities and Local Government had announced that there were no adjustments proposed to the grant settlements for Huntingdonshire previously indicated for 2009/10 and 2010/11.  As a result approximately £600,000 in grant had been withheld to financially support other authorities.  In addition, the Executive Councillor highlighted several areas critical to the preparation of the budget and MTP for the period 2009/14, making specific reference to capital and revenue reserves and the difficulties which potentially might arise from exceeding the budgets for disabled facilities grants and concessionary fares.  Mention also was made of the significant level of spending adjustments identified by Heads of Service and Chief Officers following a review of budgets, MTP schemes and plans for the next five years and the continued uncertainty surrounding the Government’s approach to capping.

To clarify the position, the Executive Councillor reported that the District Council’s contribution to the County Council’s accident safety scheme on the A141/Kings Ripton road junction, Huntingdon would be financed from the MTP bid for the local transport plan (£30,000), Huntingdonshire Transport Strategy (£5,000) and Safe Cycle Routes (£20,000) with a balance of (£20,000) coming from LPSA reward funding. 

In concluding his address, Councillor Rogers envisaged that Council Tax was unlikely to rise above 4.99% leading to an increase of between 0.48p and £5.76 per month for a band D property.  Therefore, he commended the recommendation of the Cabinet on the draft budget and MTP 2009 – 2014 to the Council. 

The Leader of the Opposition, Councillor P J Downes, welcomed the contribution made by the Overview and Scrutiny Panels to the budgetary process and the clarification received on the position in respect of the A141 safety scheme.

Referring to the income raised by the Council from fees and charges, Councillor I C Bates, Leader of the Council, drew attention to the difficulties which might result from the effect of the economic downturn on income from planning fees, recycling credits and admissions to the leisure centre complexes, with a possibility that spending might require further adjustment to allow for any resulting loss of income over the next few months. 

Whereupon, having been moved and seconded and put to the vote the recommendation contained in Item No.42 was declared to be CARRIED

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In connection with Item No. 49 and in response to a question from Councillor P J Downes regarding the setting of more ambitious targets for recycling and composting, the Leader, Councillor I C Bates, referred the questioner to a response to a similar question given by the Cabinet Member for Environment and Climate Change to a meeting of the County Council held on 21st October 2008 when Councillor Downes  ...  view the full minutes text for item 50

To consider a report by the Head of Financial Services.

Recommended to full Council that the draft budget and Medium Term (MTP) be approved as the basis for the development of the 2009/2010 budget, the revised MTP to 2013/2014 and the financial strategy to 2023/2024.

Further to Minute No. 08/45 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 the present position on the draft 2009/10 budget, the Medium Term Financial Plan for the period up to 2013/14 and the long-term financial forecast to 2023/24 together with the deliberations of the Overview and Scrutiny Panel (Corporate Strategic Framework) thereon. 

In discussing the contents of the report, Members emphasised the need to consider a range of potential scenarios, particularly given the uncertainty as to future levels of revenue support grant and the difficulties presented by the current economic downturn.  Having referred to a question raised by the Overview and Scrutiny Panel (Corporate Strategic Framework) regarding the funding of the Cambridgeshire County Council Accident Safety Scheme on the A141 Kings Ripton Road, Councillor T V Rogers, Executive Member for Finance and Environment reported that the District Council’s contribution would be financed from the medium term bids for the Local Transport Plan (30K) , Huntingdon Transport Strategy (5K) and Safe Cycle Routes (20K) with the balance of 20K from the LPSA reward funding not yet identified in the draft budget/MTP.

RESOLVED

  that the draft budget and Medium Term (MTP) be recommended to full Council as the basis for the development of the 2009/2010 budget, the revised MTP to 2013/2014 and the financial strategy to 2023/2024.

To consider and comment upon a report by the Head of Financial Services on the draft Budget 2009/10, the Medium Term Plan to 2013/14 and the longer term financial forecast to 2023 /24.

(Councillor T V Rogers, Executive Councillor for Finance and Environment was in attendance for this Item).

With the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel reviewed the draft 2009/2010 budget and the Medium Term Plan to 2013/14 within the context of a long term financial forecast covering the period up to 2023/2024, in advance of their consideration by the Cabinet and final determination by the Council.

The Panel was reminded of the difficulties and uncertainties created by the current economic climate in drafting the budget and informed that Executive Councillors had been fully involved in the process of examining the draft, together with any proposals which affected their portfolios. Members’ attention was drawn in particular to the increase in spending between the 2008/09 and the 2009/10 draft budget which had arisen from a range of circumstances largely beyond the control of the Council.

Members commented on the risks to the successful achievement of the proposed MTP and, in light of the continuing depletion of the capital reserves, the requirement to borrow to fund future capital projects from 2009/2010 onwards.  Having noted that Officers would be continuing to seek to secure efficiency savings where possible, Members were reminded that whereas the District Council had been fortunate in previously having significant capital reserves from the sale of its housing stock most Councils had relied on borrowing to fund capital schemes for many years. An assurance was given that the risks associated with long term Council borrowing in terms of interest rates, the financial viability of lenders etc would be managed satisfactorily in the future.

The Panel asked a number of questions relating to the possible impact of a reduction in National Non-Domestic Rates, comparative MTP expenditure between towns and rural areas and investment in housing provision. Members were reminded that their individual comments were also welcome before the draft budget was finalised for submission to Council.

Arising from a question by Councillor P J Downes as to the source of the funding for the highway safety scheme at the A141 Kings Ripton Road junction, he was informed that a detailed reply would be provided after the meeting.

Having been advised that a further report would be submitted to its meeting in January 2009, the Panel expressed its support for the recommendations to be submitted to the Cabinet meeting on 20th November prior to consideration by the Council on 3rd December 2008.