Issue - meetings

Councillor J A Gray, Executive Councillor for Resources to update the Council, by reference to a report by the Head of Financial Services, on progress towards the Budget 2013/14 and Medium Term Plan.

By reference to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) Councillor J A Gray, Executive Councillor for Resources presented the draft budget 2013/2014 and MTP 2013/2017.  Councillor Gray advised the Council that due to some delay to Government announcements, he could only update the Council on various issues and anticipate the position which the Council might find itself in when required to approve the 2013/2014 budget and MTP at their next meeting in February 2013.

Despite this outlook, Councillor Gray drew the Council’s attention to Annex A to the report of the Head of Financial Services which highlighted the extent of activities which were underway or forecast.  Although not yet aware of the details of Government funding for Huntingdonshire in 2013/2014, Councillor Gray forewarned Members that information thus far suggested that there would be a reduction in funding for local government generally.

The Council was reminded of the financial objectives of the Cabinet and advised of progress achieved towards these targets to-date.  It was explained that the Council was on course to achieve a balanced revenue budget by the financial year 2016/2017, that it was anticipated that revenue reserves would stabilise at £5.4m from 2015/16 and that work was continuing to establish a clear protocol for borrowing and investment to deliver tangible returns.  Councillor Gray was able to announce that the level of new home bonus allocated by the Government was as expected, which removed an element of uncertainty from the draft budget. 

Councillor Gray continued to review the remainder of the report in detail drawing Members’ attention to matters of particular interest.

In terms of council tax levels, Councillor Gray was pleased to announce that discussions between the Executive Leader and Baroness Hanham had appeared to influence the council tax principles proposed for 2013/2014.  These would provide an option for those Shire District Councils with historically low council tax to consider an increase to council tax of up to 2% or £5 without the need for a referendum.  This announcement would offer the Council greater flexibility in proposing a budget for 2013/2014. 

It was also made clear that although employees had been offered a 2% pay award to be payable from 1st April 2013, no performance increments would be recommended.

Councillor Gray reassured the Council that the Cabinet would not become complacent and remained open to suggestions for further savings.  Ideas already received either had been implemented or were being evaluated and whilst challenging, work would continue towards the Council’s objectives despite the prevailing economic difficulties.

On moving the recommendation of the Cabinet, Councillor Gray indicated his appreciation for the support he had received from the Managing Director (Resources) and the Head of Financial Services and his Team.  The recommendation was duly seconded by Councillor J D Ablewhite.

In the debate that followed, Councillor M F Shellens asked whether the Cabinet had re-considered proposals to increase car parking charges given the importance of maintaining the vitality of  ...  view the full minutes text for item 52

To consider a report by the Head of Financial Services.

A copy of the report – Controllable Budgets by Budget Holder has been circulated separately to the Agenda.

Recommended the draft Medium Term Plan to Council as the basis of the development for the 2013/2014 budget and the revised Medium Term Plan.

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) setting out the draft budget for 2013/2014 and the Medium Term Plan (MTP) for the period 2014 – 2018.

Executive Councillors were advised that the announcement of government grant figures may not be available until the 19th or 24th December 2012.

In discussing the contents of the report, Members’ attention was drawn to the latest position on the retention of the business rates for which the starting base rate had yet to be confirmed.  The Head of Financial Services explained that all the Cambridgeshire authorities were revising their level of business rates growth prior to a final decision on whether to proceed with a countywide pooling scheme.

With regard to the setting of the Council Tax base, the Cabinet referred to the Council’s low level of Council Tax currently and expressed their frustration at not being in a position to increase the level by more than 2% due to guidance issued by the Secretary of State.  Furthermore, Executive Councillors were of the view that the Council should not accept the proposed Council Tax Freeze Grant of 1%.

Having considered the Panel’s views on the Council’s use of reserves, the Cabinet emphasised that the Council would continue to identify savings and monitor progress.

In relation to car parking charge increases, the Cabinet were conscious of the economic outlook and agreed that it may not be possible to increase charges in 2015.  In that respect, Executive Councillors agreed that the final Medium Term Plan would need to be adjusted to reflect this.  During their discussions the Cabinet were advised that options would continue to be investigated to introduce Civil Parking Enforcement which may generate additional income.

Having reiterated the need to identify where additional savings could be made, the Cabinet congratulated members and officers on the significant progress that had been made in both the efficiency and savings measures over the past 18 months.

Whereupon, it was

RESOLVED

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

  (b)  that the draft Medium Term Plan be recommended to Council as a basis for the development of the 2013/2014 budget and the revised Medium Term Plan 2014/2018.

To consider a report by the Head of Financial Services.

A copy of the report – Controllable Budgets by Budget Holder has been circulated separately to the Agenda.

(All Members of the Council have been invited to attend for the discussion on this item).

(Councillor J A Gray, Executive Councillor for Resources, was in attendance for this item).

With the assistance of a report by the Head of Financial Services (a copy of which is appended in the Minute Book), the Panel considered an update on the 2013/14 Budget and MTP. By way of introduction the Chairman reported that he had presented the conclusions reached by the Panel at the recent informal meeting to the Executive Leaders Strategy Group on 3^rd December. As a consequence, he had received an assurance that the presentation of financial information would be discussed with the Panel at the conclusion of the current budget cycle. In terms of the priority areas for potential savings, Members were advised that the Cabinet was developing its own range of options for savings, many of which were similar to those which had been identified by the Panel. In this regard, the Executive Leader and the Executive Councillor for Resources would be meeting shortly to establish a package of potential savings measures for further consideration.

The Head of Financial Services provided a detailed presentation on the contents of the report, which included information on service budgets, Council Tax subsidy, retention of business rates, the New Homes Bonus, the Council tax level, inflation and interest rates and the key risks associated with the current budgetary situation. Having been reminded that the Council had agreed to support in principle the pooling of business rates, the Panel discussed the consequences of not adopting this approach.  Members were advised that further work would be undertaken before a decision was taken for next year and they were reminded of the principles upon which the pooling arrangement would operate. It was dependent upon all Cambridgeshire authorities agreeing to enter into the pool. If it was decided not to proceed in the forthcoming financial year, it would still be possible to do so in future years.

In terms of the predictions that had been made for future housing completions, Members enquired whether the data took into account the potential for a slow down in house building over the course of the next few years. The Head of Financial Services explained that a paper on future projections had recently been received from the Planning section and, once this had been worked through in more detail, further information could be brought to a future meeting. Having emphasised the need to exercise caution in this respect, Members were advised that a risk provision for slower completion of new homes had been included in the current report.

With regard to Council Tax levels for future years, a Member enquired whether the Council would ever be in a position where it would not rise. In response, the Head of Financial Services explained that there would always be pressure on the Council’s finances from inflation, which meant this was unlikely. The Executive Councillor for Resources also commented that in previous years the rise in Council Tax had not been greater than any rise in benefits  ...  view the full minutes text for item 70