Issue - meetings

The Council is requested to consider the Cabinet’s recommendations on the Financial Plan, Medium Term Plan for 2010/14, the 2009/10 Budget, related Prudential Indicators and the Treasury Management Strategy (see also Items Nos. 58 and 59 of the Report of the meeting of the Cabinet) and, in accordance, with Section 30 (2) of the Local Government Finance Act 1992 Act, to approve resolutions as to the levels of Council Tax in 2009/10 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. 58 and 59 of the Report of the Cabinet, the Executive Councillor for Finance and Environment, Councillor T V Rogers, addressed the Council on the financial plan, medium term plan 2010 to 2014, 2009/10 budget and related prudential indicators contained in the Treasury Management Strategy.  In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals as to the levels of Council Tax in 2009/2010 for the various parts of the Huntingdonshire District.

In his opening remarks, Councillor Rogers drew Members' attention to the pay award of 2.2% for employees which was less than anticipated and the overspend of £150,000 on the concessionary bus fare scheme which he suggested could be offset by the award of LAGBI funding in the order of £150,000.  He acknowledged the contributions made by the Overview and Scrutiny Panels and members of the Business Community to the budgetary process.

Councillor Rogers drew Members' attention to key issues and a series of changes which had occurred as a result of the economic downturn which had had an effect on the budget.  These included depletion of the capital and revenue reserves and falls in income from planning applications, industrial rentals and land charges.  He added that the Council would be operating in a period of uncertainty for some time as the length and severity of the current economic downturn could not be predicted.  He added that further resources might be required to cope with a growing homelessness problem and to meet any further variations in income.

Members were advised that the Council expected to end the current financial year with revenue reserves of £19m, that it was the expectation that £12.6m in revenue support would be received from the Government and that £3.7m from the reserves would be used to fund services and maintain a low Council Tax in the financial year 2009/2010.  Councillor Rogers emphasised that the Council would continue to search for efficiency savings and other sources of income.  Despite these initiatives, Councillor Rogers forecasted that revenue reserves would be exhausted by approximately 2013.  In addition to Cabinet measures to address these issues, Councillor Rogers informed the Council that a Working Party comprising Councillors K J Churchill, P J Downes, J E Garner, L W McGuire, T V Rogers and R J West had been appointed by the Overview and Scrutiny Panel (Corporate and Strategic Framework) to identify options for further budget savings and opportunities for new funding.

In terms of the Treasury Management Strategy, Councillor Rogers reported that the Cabinet had indicated support for corporate bonds and that the strategy was recommended to Council with this addition or its equivalent.

Before concluding, Councillor Rogers reported that if supported by Council, the budget would increase by 4.38% resulting in a Band D Council Tax of £121.15 or £2.33p per week, the  ...  view the full minutes text for item 57

With the assistance of a report by the Head of Financial Services to consider the 2009/10 Budget and Medium Term Plan.

Recommended to full Council that the proposed Budget, Medium Term Plan and Financial Strategy and that a Council Tax increase of 4.99% (£5.76) representing a level of £121.15 for Band D properties be approved for 2009/2010.

Further to Minute No. 08/90 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 2009/2010.

In discussing spending adjustments in the Medium Term Plan, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Corporate and Strategic Framework) on the matter.  In that respect, Members concurred with the Panel that given the current economic climate and the need for budgetary flexibility there would be merit in establishing a working group to assist Executive Councillors in their continuing review of the budget and financial strategy.

Having noted comments arising from the consultation with the business community on expenditure proposals and in acknowledging the contribution of the Overview and Scrutiny Panel for their considerations, the Cabinet

RECOMMENDED

  (a)  that the proposed Budget, Medium Term Plan and Financial Strategy appended to the report now submitted be approved; and

  (b)  that an increase of £5.76 (4.99%) in Council Tax, representing a level of £121.15 for Band D properties for 2009/10 be approved.

To consider a report by the Head of Financial Services prior to its consideration by the Cabinet.

Councillor J A Gray in the Chair.

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

With the aid of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) the Panel reviewed the Financial Strategy, Medium Term Plan (MTP) 2010-2014 and the Budget and level of Council Tax for 2009/10 in advance of their consideration by the Cabinet and final determination by the Council.

By way of introduction, the Executive Councillor for Finance and Environment acquainted the Panel with details of Executive Members' involvement in identifying potential areas for spending adjustments. Councillor Rogers went on to express the view that the budgets associated with housing services and Information Technology should be recast as single budget areas. During discussion on this matter, a suggestion was made by a Member that the potential benefits of creating single budgets for each Executive Councillor's area of responsibility might be investigated. 

The Panel considered proposed increases in expenditure on Information Technology.  In so doing, a suggestion was made that those Information Technology matters identified in the report as requiring approval by the Chief Officers Management Team should be submitted to the Cabinet before proceeding. 

With regard to the level of unidentified spending adjustments required in the period to 2013/14, and following a suggestion made by the Executive Councillor for Finance and Environment, the Panel decided to establish a Working Group to review the budget for future years.  It was agreed that the Working Group should take into account which items within the budget were a statutory requirement and which were permissive. Councillor P J Downes also suggested that, as part of this process, some of his Party's previous suggestions for achieving spending adjustments might be revisited.

With regard to the proposed level of Council Tax for 200/10, Members expressed support for an increase of £5.76 for a Band D property.Members also expressed support for the proposed Budget and MTP.

The Panel then discussed the overall approach that the Council should adopt given the present economic conditions. Members identified two possible strategic courses, namely exercising restraint in its spending and implementing measures to support and promote the local economy.  Having requested that the Cabinet took into account these options and the Panel’s other comments when formulating its recommendations on the overall strategic approach to be adopted and on the Council’s Financial Strategy, MTP and Budget, it was

RESOLVED

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

  (b)  that the Cabinet be informed of the Panel's support for an increase of £5.76 (4.4%) in Band D equivalent Council Tax for 2009/10; and

  (c)  that a Working Group comprising Councillors J E Garner, L W McGuire and R J West be established to review the Council’s budget for future years and to express a view on the feasibility and relative merits of reducing individual budgets within it.