Issue - meetings

The Executive Councillor for Resources and Customer Services to present a report by the Head of Financial Services on the process leading towards approval of the 2012/13 Budget/Medium Term Plan at the meeting of the Council in February 2012.

With the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and referring to Minute No. 30, Item No. 21 post, the Executive Councillor for Resources and Customer Services updated Members on issues which would impact upon the process leading to approval of the 2012/2013 budget and medium term plan at the Council meeting in February 2012.  The Executive Councillor also invited the views of the Council on the basis on which the Minimum Revenue Provision should be calculated.

Against a background of continued uncertainty, the Council was reminded that there was still a shortfall of savings equivalent to £2m and that for a variety of reasons the 2010/2011 outturn was £1m below that forecast.  Councillor Rogers drew Members’ attention to savings which had been identified already, those areas where potentially savings could be made and others where work to achieve savings was still in progress.

The Council was informed of the Government’s intention to replace the rate support, Council tax reward and the new homes reward grants with a formula grant which also was intended to fund any additional tasks that had been transferred to local authorities over  time.  This, in turn, was to be replaced by an alternative scheme which would permit a local authority to retain a proportion of business rates from April 2013. The Council noted the potential for this latest initiative to be beneficial to the authority and, in the short term, for the new homes bonus to be higher than originally forecast. 

However, given the difficulty in forecasting the impact of the economic downturn of several significant issues and the outcome in terms of net spending or funding, Councillor Rogers presented two options to the Council in terms of the level of council tax which might be recommended later in the budget process. 

Having commended to Council the annuity basis as the means of calculating the Minimum Revenue Provision, Councillor Rogers invited the Council to debate the financial forecast.

Before doing so and on behalf of the Liberal Democrat Group, Councillor P J Downes thanked Councillor Rogers for his contribution as Executive Councillor for Resources & Customer Services and for the manner in which he had presented reports to the Council on financial matters.  Councillor Downes reminded Members that, in his view, the Council’s financial position was largely related to the decisions taken, in the past, to support the sale of council houses and not to raise council tax and that he was hopeful that the Council would take advantage of the opportunity presented to use maximum flexibility in setting future council tax levels to protect reductions in service and minimise the impact upon the most vulnerable in society.  In support of his colleague, Councillor M F Shellens expressed his appreciation to Councillor Rogers for his thoughtfulness and careful presentations to Council and welcomed the various council tax options which had been proposed for consideration.  These sentiments also were endorsed by Councillors I  ...  view the full minutes text for item 28

To receive a report by the Head of Financial Services.

Approved the annuity basis for the calculation of Minimum Revenue Position as set out in Annex E and requested the Council to endorse the contents of the report now submitted.

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 2024/25 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 acquainted with progress to date in the achievement of savings and has acknowledged the uncertainty surrounding the forecast and a number of assumptions which will be clarified over the next few months. Particular mention was made of a number of options being investigated for preserving a CCTV service and to a report on the potential impact of grant reductions to the voluntary sector organisations to be submitted to the Overview and Scrutiny Panel (Social Well-Being) and Cabinet in October.

In noting that there had not yet been any announcement by the Government as to the limit for Council tax increase in the current year, Members discussed the approach the Council might take and the views of the Overview and Scrutiny Panel (Economic Well-Being) thereon. The Cabinet were of the opinion that the implications of not increasing Council Tax next year should not be included in the options under consideration given the impact on services of the additional budget cuts that would be necessary. Whereupon, the Cabinet

RESOLVED

(a)  that the contents of the report be noted;

(b)  that the annuity basis for the calculation of Minimum Revenue Position as set out in Annex E to the report submitted be approved; and

(c)  that Council be requested to approve the contents of the report now submitted.

To consider and comment on a report by the Head of Financial Services prior to its submission to the Cabinet.

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

(Councillors J D Ablewhite, I C Bates, M Banerjee, N J Guyatt and P J Downes also were in attendance for this item).

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) in relation to the Council’s financial forecast for the period to 2024/25. By way of introduction, the Head of Financial Services acquainted Members with detailed aspects of the report including the potential for variations in a number of sources of income and other factors that could affect the Council’s financial position. The Panel also received an update on progress made to-date in the achievement of avings and has noted the uncertainty surrounding the forecast and a number of assumptions which would be clarified over the next few months.

In considering the contents of the report and in response to a number of questions, the Head of Financial Services explained that the Government had not yet announced whether it would impose a limit on Council tax increases for next year. The Managing Director (Resources) outlined the savings which had been accrued to-date or were expected as a result of the reorganisation of senior managers.  

Discussion then ensued on the approach the Council might take to setting the Council Tax for 2012/13.  Following a suggestion that an analysis should be undertaken of the implications of not increasing the Council Tax next year, the Panel agreed that this should be included in the range of options under consideration.  Members noted that it would require an increase of 30% for Huntingdonshire to reach the current average level of Council Tax for District Councils.. The Head of Financial Services explained that there had been no indication that there would be any financial incentive for authorities to retain their current Council Tax levels for the forthcoming year. Having received a comment by a Member that an increase of 5% would cover the lower end of the unidentified savings, the Panel concluded that all council tax options should be considered during the budget setting process.

In response to a question on the implications of the transfer of housing benefit to the Department of Work and Pensions, the Executive Councillor for Resources and Customer Services explained that the timetable for the establishment of a universal credit system was ambitious and the impact of the transfer on the Council’s budget was still unclear. Members were also informed that the transfer would affect the Council’s Fraud Team.

With regard to the Council’s planned savings through changes to employees’ pay and allowances, the Panel noted that the introduction of a revised salary scale would make savings significantly greater than those included in the budget. On the current consultation process with employees, comment was made by a Member on the need to ensure that the changes applied to all levels of employees to demonstrate equity and leadership in this matter.  ...  view the full minutes text for item 34