Issue - meetings

To consider the Cabinet's recommendations on the Medium Term Plan for 2013 - 2017, the 2012/13 budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 16th February 2012) 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 2012/13 for the various parts of Huntingdonshire District.  A report by the Head of Financial Services is enclosed (it is the expectation that the tables to the formal resolution will be circulated at the meeting).

(See Minute No. 55 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. 56 and 57 of the Report of the Cabinet, the Executive Councillor for Resources addressed the Council on the Medium Term Plan, 2012/2013 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 2012/2013 for various parts of the Huntingdonshire District.

In his opening remarks, Councillor Gray acknowledged the contribution made to the budgetary process by the Overview and Scrutiny Panel (Economic Well-Being) and Members of the business community.  He also described the approach taken by the Cabinet towards Treasury Management which had 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.

Although not wishing to repeat the points raised at the last meeting, Councillor Gray made reference to several other issues which would impact on the budget.  The most significant of these related to pay and allowances, voluntary sector and disabled facilities grants and a proposed new homes bonus of £1.913m which was £37,000 greater than previously forecast.  In terms of risks and reserves, Councillor Gray referred to the examples which had been used to measure the potential impact of various international financial issues on the Council’s financial position and how these had been used to establish a lower end figure for inclusion in the budget as the risk provision and a higher end figure in the event that an extra level of risk might emerge.  At the suggestion of the Overview and Scrutiny Panel (Economic Well-Being) and having regard to the advice contained in Annexes C and D hereto, the proposed budget was based on not allowing reserves to fall below £4.5m.  With the assistance of the Panel, this position would be reviewed again in September to ensure it remained appropriate.

Having regard to Council Tax levels, the Executive Councillor for Resources advised the Council that although acutely aware of the difficulty any increase in Council Tax could present to those with limited incomes, the Cabinet had decided not to recommend acceptance of the Government’s offer of a 2.5% increase in grant as this would place the Council at a clear disadvantage in the future and make it difficult to manage innovatively to preserve valued services.

Having regard to the view expressed by the Council on the draft budget and MTP at the last meeting, the Executive Councillor described the significant adjustments which had been made to the budget since then which now included a major proportion of the voluntary sector grant budget and funding for CCTV and service centres in St. Neots and Yaxley which has specifically been  ...  view the full minutes text for item 57

With the assistance of a report by the Head of Financial Services to consider the 2012/13 Budget and Medium Term Plan.

Recommended to Council the approval of the proposed budget for 2012/13, Medium Term Plan 2013 to 2017 and Financial Plan and an increase of £4.34 (3.5%) in Council Tax, representing a level of £128.51 for a Band D property for 2012/13.

Further to Minute No.11/73 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 2012/13.

Attention was drawn to the latest government grant figures, Executive Councillors noted that the Formula Grant was as predicted and the proposed New Homes Bonus for 2012/13 was now £1.913m, an increase of £37K on that previously forecasted.

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 Council Tax levels should be increased by 3.5% in order to meet unavoidable inflation and preserve valued services as far as possible both this year and in the future.

On the subject of funding for the voluntary sector, the Cabinet confirmed that the Overview and Scrutiny Panel (Social Well-Being) would be examining in detail the policies and mechanisms proposed between the sector and the Council given that it falls under their remit.

In noting the Council’s level of revenue reserves, including its relativity to other District Councils, Executive Councillors were reminded that the level will be reviewed as part of the Council’s financial forecast each September.

The Head of Financial Services drew Members’ attention to the Overview and Scrutiny’s comment that a saving had not been included in a section’s budget, he explained that the issue related to confusion as to whether a saving had been achieved, rather than to whether the budget had been reduced by the relevant savings target.  Furthermore, the final phase of the annual budget process when budgets are disaggregated to a lower level would clarify and resolve such issues.

In response to a question by the Panel as to whether certain corporate budgets should be shown in the unallocated section rather than under the Head of Financial Services in Annex G, the Executive Councillor for Finance undertook to discuss this with the Managing Director (Resources) before responding to the Panel.

Having noted the comments arising from the consultation with the business community on expenditure proposals and in acknowledging the contributions of the Overview and Scrutiny Panel and the work of staff for achieving the budget outcomes, the Cabinet

RECOMMENDED

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

(b)  that an increase of £4.34 (3.5%) in Council Tax, representing a level of £128.51 for a Band D property for 2012/13 be approved.

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

(Councillor J A Gray, Executive Councillor for Resources, 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 Medium Term Plan (MTP) 2013 – 2017) and the Budget and level of Council Tax for 2012/13 in advance of their consideration by Cabinet and final determination by the Council.

By way of introduction to the report, the Executive Councillor for Resources drew attention to the changes which had been made to the Budget and MTP since the Panel's deliberations in December 2011. He also drew attention to the proposal to increase Council Tax in 2012/13 and the rationale behind this.

Members were advised that, further to their previous discussions, it was now possible to set the level of reserves at £4.5M. Their attention was drawn to the graph at Annex C to the report, which contained forecasts of the level of reserves that would be held by District Councils at March 2012. It was suggested that the graph could be updated and reviewed in September 2012 as part of the financial forecast. Councillor Gray then reiterated that although efficiency savings had been higher than anticipated in the current year, the Cabinet was not complacent and was mindful of the need to achieve further savings throughout the year ahead.

The Managing Director (Resources) outlined the context within which the draft Budget and MTP had been prepared and the Head of Financial Services provided a detailed explanation of the content of the report. Having welcomed the inclusion of a number of their previous recommendations, the Panel proceeded to examine each section of the report.

During discussion on the spending variations that had been identified since the draft budget had been prepared, a Member asked whether it was possible to breakdown the figure of £221,000 which had been allocated to the heading 2011/12 Forecast Outturn. In response, the Head of Financial Services explained that further details could be found in the revenue and capital monitoring reports which were prepared for the Cabinet on a quarterly basis and that copies of the reports could be provided to Members on request. With regard to the significant savings which had been generated by the agreement with employees that they would accept a pay freeze in April 2012, the Panel expressed their appreciation of employees’ contribution towards improving the Council's budget position.

Councillor M F Shellens queried whether it was premature to include budgetary provision for the A14 inquiry, but was advised that the inquiry was likely to commence in March. Having noted that, owing to the Council's success in collecting Council Tax, there would be a surplus of £464k on the Collection Fund, the Panel congratulated the Head of Customer Services on the performance of the Council Tax team.

The Panel discussed the additional £188,000 which had been allocated for Voluntary Sector Grants in 2012/13 and the process that would be put into place to  ...  view the full minutes text for item 88