Issue - meetings

To consider the Cabinet’s recommendations on the Medium Term Plan for 2012/16, the 2011/12 Budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the meeting of the Cabinet held on 17th February 2011) and, in accordance with Section 30 (2) of the Local Government Finance Act 1992, to approve resolutions as to the levels of council tax in 2011/12 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 C should be treated as confidential at this stage.  The formal resolution which forms part of Appendix C is to follow.)

(See Minute No. 71 for Members’ interests.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos. 57 and 58 of the Report of the Cabinet, the Executive Councillor of Finance and Customer Services addressed the Council on the Medium Term Plan, 2011/2012 budget and related prudential indicators contained in the Treasury Management Strategy and moved the recommendations of the Cabinet.  In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals for the levels of council tax in 2011/2012 for various parts of the Huntingdonshire District.  Councillor Rogers also drew the Council’s attention to a further document (a copy of which also is appended in the Minute Book) regarding the adjustments to the Council’s budget which had been required because of subsequent announcements by Government in respect of the formula (RSG) and New Homes Reward grants.

In his opening remarks, Councillor Rogers acknowledged the contribution made to the budgetary process by the Overview and Scrutiny Panel (Economic Well-Being), members of the Business Community and Town and Parish Councils.  He also described the approach taken by the Cabinet towards Treasury Management which involved a degree of risk management in seeking to achieve a balance between investment and return.  He suggested that the Council continue to be prudent in the management of its borrowing and investments.

In terms of the financial strategy, MTP and budget, Councillor Rogers drew attention to those issues underlining the recommendations of the Cabinet.  He explained that the proposal not to increase the council tax in 2011/2012 would require a reduction of £3.6m from revenue reserves, that the Government had now confirmed Revenue Support Grant of £10.5m in 2011/2012, an indicative figure of £9.3m for 2012/2012 and a New Homes Bonus of £800,000 in 2011/2012.  Councillor Rogers assured the Council that Executive Councillors, the Overview and Scrutiny Panel (Economic Well-Being) and Heads of Service had continued to search for efficiency savings and that those identified had either been incorporated into the budget or were the subject of further consultation and debate.

Brief reference also was made by Councillor Rogers to other issues which would impact on the budget.  These related to the review of pay and allowances which it was anticipated would be reported to the Employment Panel shortly and the review of the income and operation of the voluntary sector.  Following representations made to the Council by petitioners, Councillor Rogers announced that St. Ives Customer Service Centre would close, that St. Neots Centre would remain open three days per week and that the Yaxley and Ramsey Centres would be retained for two days per week.  In the latter case, the offices would remain available for use by voluntary organisations throughout the week.  The hours and establishment of the Huntingdon Office and Call Centre still was subject to review.

In response, Councillor P J Downes on behalf of the Liberal Democrat Group acknowledged that the  ...  view the full minutes text for item 76

With the assistance of a report by the Head of Financial Services to consider the 2011/12 Budget and Medium Term Plan.

Recommended to full Council that subject to appropriate adjustments to the Annexes to reflect the final settlements for the Government Formula and New Homes Reward Grants, the proposed budget, Medium Term Plan and Financial Plan be approved and that there be no increase in Council Tax for 2011/12, i.e. Band D charge will remain at £124.17.

Further to Minute No. 10/53 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 the associated level of Council Tax for 2011/12, together with the deliberations of the Overview and Scrutiny (Economic Well-Being) Panel thereon.

In discussing the latest government grant figures, Members’ attention was drawn to an increase in the Government Formula Grant (RSG) support of £73,000 in 2011/12 reducing to a loss of £8,000 in the 2012/13 provision.  Members were advised that the New Homes Reward Grant for 2011/12 was £108,000 less than expected which was due to the Government not including the social housing supplement for the first year in advance of the use of more contemporary data.

With regard to the award of grants to voluntary organisations, Executive Councillors reiterated the Council’s financial commitment to the voluntary sector until 2013/14.  Members were advised that in the interim the Executive Councillor for Finance and Customer Services would be undertaking a review of the way in which the Council offers support to local voluntary organisations.

In discussing arrangements for CCTV, Members noted that immediate savings for 2011/12 could be achieved whilst still maintaining a substantial service and that discussions would continue to seek to maintain the service in future years. 

Following representations made to both the Council and Overview and Scrutiny Panel (Economic Well-Being) Members have been advised that by transferring resources from St Neots customer services centre during lower periods of demand, it would be possible to maintain a presence in Ramsey and Yaxley centres on two days per week.

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, the Cabinet

RECOMMENDED

(a)  that, subject to appropriate adjustments to Annexes B, C and D to reflect the final settlements for the Government Formula and New Homes Reward Grants, the proposed budget, Medium Term Plan and Financial Plan appended to the report now submitted be approved; and

(b)  that there be no increase in Council Tax for 2011/12, i.e. Band D charge will remain at £124.17.

To consider a report by the Head of Financial Services.

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

(Councillors W D Clough, S J Criswell, P J Downes, C R Hyams, P G Mitchell and P D Reeve also were in attendance for this item).

In advance of their detailed discussions on the Budget, to assist them with their deliberations, the Chairman invited Mr D Morgan, Treasurer of Hunts Forum of Voluntary Organisations to address the Panel. As part of his presentation, Mr Morgan outlined the value of the activities of voluntary organisations in terms of the income they generated for the District in the context of the funding the Council provided for them through commissioning agreements. He also referred to the likely impact of proposed reductions in the funding in future years. The Panel discussed spending by voluntary organisations and the measures they were taking to reduce their own costs and their staffing costs. Councillor S Greenall also commented on the valuable role performed by the voluntary sector in the local community and emphasised the need to find ways to mitigate the proposed reduction in grant funding.

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) 2012 – 2016 and the Budget and level of Council Tax for 2011/12 in advance of their consideration by the Cabinet and final determination by the Council. Copies of comments made by the Overview and Scrutiny Panel (Social Well-Being) on the CCTV service were also tabled for the Panel’s consideration.

By way of introduction to the report, the Panel were acquainted with the changes that had been made to the Budget and MTP since they endorsed the draft Strategy at a previous meeting. Members were advised that the updated Plan identified savings of £6.6m in the period to 2015/16 and, although the draft Budget 2011/12 did not specify a need for further savings to be made, the MTP contained a requirement to find additional savings amounting to £2m. The Budget took into account lower than expected Government grant which, it was anticipated, would be offset by the New Homes Grant. Attention was drawn to the risks and sensitivity associated with the Financial Plan in the longer term, issues relating to employer’s pension contributions and proposed savings which were still being discussed. Members were reminded that if they wished to propose changes to the draft Budget, they should identify alternative options for the delivery of savings. They then discussed the costs of deferred savings and the assumptions which had been made for future Council Tax levels.

Members queried the current situation with regard to the items on which they had commented when previously considering the draft Budget. In response, it was reported that the operating costs for CCTV had been reduced and now amounted to £300k per annum for a basic service. Discussions with users would take place in the coming year  ...  view the full minutes text for item 82