Issue - meetings

To consider a report by the Head of Financial Services

Approved the annuity basis for the calculation of Minimum Revenue Provision, set out in Annex C of the report  and recommended the report to Council.

(Councillor J A Gray took his seat at 7.10pm during discussions on this item)

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 in relation to the Council’s financial forecast for the period up to 2018/2019 together with the deliberations of the Overview and Scrutiny Panel (Economic Well-Being) thereon.

In considering the information contained in the report, Members have been informed of the need for sizeable reductions in the scale of spending and as a consequence potential changes to services.  Members were further advised that the Council’s financial position remains uncertain due to a number of factors including the level of reduction in government funding, the size of the Council’s current deficit in relation to reducing revenue reserves and low Council Tax.

If no action were to be taken it was acknowledged that the total gap between income and expenditure could rise to over £8 million by the financial year 2014/15, Executive Councillors shared the view that radical decisions would need to be taken which would affect all services in some way and would change fundamentally the Council.

In discussing a timetable for preparing the budget and savings plans, Executive Councillors recognised the need to produce detailed objectives, consider the views of local residents, engage with Town and Parish Councils and involve the Overview and Scrutiny Panels and members generally in the process.

Having noted that the timetable for adoption and implementation of an updated Redundancy Policy and Voluntary Release Scheme and consequential technical issues relating to the Council’s budget and accounts would be considered at next meeting of the Employment Panel, the Cabinet

RESOLVED

(a)  that the annuity basis for the calculation of Minimum Revenue Provision as set out in Annex C to the report now submitted be approved; and

(b)  that Council be requested to consider the contents of the report now submitted and the challenges that need to be addressed over the coming months.

To consider and comment on a report by the Director of Commerce & Technology prior to its submission to the Cabinet.

(Councillor T V Rogers, Executive Councillor for Finance and Customer Services was in attendance for this item).

(Councillors M G Baker, Mrs M Banerjee, J W Davies, R S Farrer, P M D Godfrey, C R Hyams, L M Simpson and  P R Ward were in attendance for this item)

Consideration was given to a report by the Director of Commerce and Technology (a copy of which is appended in the Minute Book) in relation to the Council’s financial forecast for the period to 2018/19. By way of introduction, the Chairman drew attention to the severity of the financial situation facing the Council, the likelihood of a reduction in the funding the Council received from the Government and the need for the Council to consider its future requirements and structure to respond to the current situation. This would require radical decisions to be taken, which were likely to affect most services in some way and the Chairman emphasised the importance of the role of overview and scrutiny in this process.

Councillor T V Rogers, Executive Councillor for Finance explained that the report by the Director of commerce and Technology provided Members with an update on the present financial position and on the adjustments that the Authority would be required to make. He went on to refer to the recent consultation on the budget, which had generated approximately 2000 responses, and to the need shortly for radical decisions to be taken, which were likely to affect all services. The Panel noted the intention of the Executive Councillor to involve the Overview and Scrutiny Panel in this process and that all Members were invited to submit ideas for spending reductions. An announcement by the Government was expected in October on the Revenue Support Grant for 2011/12 following which the Council would prepare the draft budget.

The Director of Commerce and Technology explained that cuts in Government funding were likely to amount to over £3m per annum within 5 years which would create a total budget shortfall of over £8m per annum in 4 years time. The scale of savings needed would require Members to approve substantial changes to the scope and nature of services provided by the Council starting with the current year’s budget and Medium Term Plan. The Panel’s attention was drawn to the circumstances that would influence the Council when setting the budget and the constraints that were likely to exist in relation to the level of Council Tax, which might provide an opportunity to increase Council Tax to a level closer to the average for District Councils.

Having acknowledged the uncertainty surrounding the current forecast which contained a number of assumptions that would be clarified over the next few months, Members discussed whether the Council should start to take steps in preparation for the anticipated reduction in Government grant. While some Members were of the opinion that decisions could only be made once the level of grant and potential changes in the Council’s responsibilities were known, others considered it  ...  view the full minutes text for item 33