Issue - meetings

To consider a report by the Head of Financial Services.

Approved a supplementary capital estimate of £300k to enable the Huntingdon multi-storey car park scheme to proceed and recommended the draft Budget for 2012/2013 and Medium Term Plan (MTP) for the period 2011 – 2017 to Council for approval as the basis for the development of the budget for 2012/13 and the revised Medium Term Plan 2013/17.

(At this point during the meeting Councillor Gray, Executive Councillor for Resources, took his seat at the meeting).

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) setting out a draft Budget for 2012/2013 and Medium Term Plan (MTP) for the period 2011 – 2017.

Members were advised of the latest government grant figures and were pleased to note that the Formula Grant was as predicted and the New Homes Bonus higher than the projected figure within the budget.

In discussing the contents of the report, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Economic Well-Being).  In that respect, Members concurred with the Panel that the Council should not accept the proposed Council Tax Freeze Grant.

With regard to setting the Council Tax Base for 2012/13, Executive Councillors confirmed that tax payers should not be presented with a tax increase that would require a referendum to be held.

Having considered the Panel’s views on the Council’s general reserves provision, the Cabinet noted that the minimum level of reserves was reviewed annually and discussed the benefits and risks of increasing the level to £5m.

In relation to the inclusion of Low End Assumptions built into the MTP, the Cabinet emphasised the need to consider these carefully including the implications of planning fees from the Enterprise Zone.

In discussing the increased demand for Disabled Facilities Grants, Members reiterated their commitment to maintaining the current level of service for these grants.  Executive Councillors accepted that options would continue to be investigated with a view to working in partnership with other public organisations to reduce this cost.

Discussion also ensued on the future of the Council’s CCTV service and Voluntary Sector funding, in respect of which the Cabinet noted that discussions with the relevant organisations were ongoing.

Whilst congratulating officers on the significant progress that has been made in both the efficiency and savings measures identified for the next two years, the Cabinet reiterated the need to remain vigilant given the current economic climate.

In considering a request for a supplementary capital estimate of £300k to allow the Huntingdon multi-storey car park scheme to proceed and having thanked the Overview and Scrutiny (Economic Well-Being) for their input, the Cabinet

RESOLVED

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

  (b)  that the draft Medium Term Financial Plan be recommended to Council as a basis for the development of the 2012/2013 budget and the revised Medium Term Plan; and

  (c)  that a supplementary capital estimate of £300k be approved for the Huntingdon multi-storey car park scheme.

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

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item. Councillors J D Ablewhite, Mrs M Banerjee, B S Chapman, N J Guyatt and D M Tysoe were also present).

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) which contained the draft Budget for 2012/13 and Medium Term Plan (MTP) prior to its submission to the Cabinet and Council. Councillor J A Gray, Executive Councillor for Resources, explained that many of the Council’s decisions continued to be influenced by external events and difficult financial decisions would be required for a number of years. He then presented an outline of the Council’s current financial situation, which included the progress that had been made towards achieving the current and next year’s savings targets, some of the significant variations within the Financial Plan including the introduction of the New Homes Bonus and details of the savings which still needed to be achieved over the MTP period. He reiterated that although the efficiency savings that had been achieved were higher than anticipated in the current year, the Cabinet was not complacent and was mindful of the need to achieve further savings in due course.

Having received a detailed presentation by the Head of Financial Services on the content of the report and attention having been drawn to a revision to Section 5 of the report, the Panel proceeded to examine in detail each section of the report. Councillor M Banerjee referred to the risks associated with the sums anticipated from the New Homes Bonus and the level of return which was expected from the Huntingdon multi-storey car park. In response to the first point, the Executive Councillor explained that the Council’s Planning Team had already undertaken work to establish the planning projections for future years and that a number of initiatives were being introduced to encourage first time buyers. Whilst the new Homes Bonus had been clearly identified as a risk, if the funding were not forthcoming, the Formula Grant would not be top-sliced. With regard to other risks identified in the report, Members queried whether the planning fees associated with the Enterprise Zone should also be highlighted as a risk for the Council. It was suggested that the level of fees that might be received should be assessed and identified within the financial plan either as a risk or an unknown factor.

With regard to the supplementary capital estimate for Huntingdon multi-storey car park, Members queried whether a sensitivity analysis had been undertaken on the projected levels of take up. They were informed that whilst information had been previously provided, the Executive Leader would need to be convinced of the accuracy of the information before the necessary legal agreements were completed. Having requested sight of the revised financial figures, the Panel was advised that the project had already been approved and the only change was that Trinity Place Car Park would now not be sold  ...  view the full minutes text for item 67