Issue - meetings

To consider the Cabinet's recommendations on the Medium Term Plan for 2014 - 2018, the 2013/14 budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 14th February 2013) 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 2013/14 for the various parts of Huntingdonshire District.  A report by the Head of Financial Services is enclosed (the tables and formal resolution referred to as Appendix D will follow).

Further to Minute No. 52 of the meeting of the Council held on 19th December 2012 and in conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos. 58 and 59 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the Medium Term Plan, 2013/14 Budget, the Treasury Management Strategy and other associated matters for the Council's consideration and approval.

In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals for levels of Council Tax in 2013/14 for various parts of the Huntingdonshire district.

In his opening remarks, Councillor Gray reminded the Council of the financial objectives of the Cabinet - to achieve a balanced revenue budget by the financial year 2016/17, to stabilise revenue reserves at £5.4m, to establish a protocol for borrowing and investment and to regularly monitor the levels of new home bonus allocated by the Government.  Councillor Gray was content to report that the Council was meeting its targets in this respect.  On behalf of the Council, Councillor Gray extended his appreciation to the Heads of Financial Services and Customer Services and their teams for their contributions to this position.

By reference to the report of the Head of Financial Services, Councillor Gray updated the Council on developments since its meeting in December and the consequences of these for the District Council's services.  He acknowledged the support for the proposed level of Council Tax increase and the contribution made to the budgetary process by the Overview and Scrutiny Panel (Economic Well-Being) and members of the business community.

In concluding, Councillor Gray reminded Members of the significant savings which already had taken place which included a reduction in staff, re-organisation of refuse rounds, installation of PV Panels, a proposed increase in car parking charges and joint procurement.  Despite these attempts to reduce expenditure, Councillor Gray assured the Council that projects considered to be beneficial and strategic still would proceed and in this respect he referred to current development at One Leisure, St Ives, the release of upfront funding for the Huntingdon West relief road and the Huntingdon multi-storey car park, the net cost of which would be recovered over a period of years.

Even with the proposed Council Tax increase, the Council was informed that further savings of £1.5m by 2014/15 rising to £2.6m in 2017/18 still required to be achieved which would present a major challenge to the authority.  Conscious of the needs and demands of the local community in the current economic climate and the responsibility placed on the Council to provide a range of statutory and obligatory services for local people, Councillor Gray moved the recommendations of the Cabinet which were duly seconded by the Executive Leader, Councillor J D Ablewhite.

In response, Councillor M F Shellens expressed his appreciation for the skilful and measured way in which the budget had been compiled and presented to the  ...  view the full minutes text for item 64

With the assistance of a report by the Head of Financial Services to consider the 2013/14 Budget and Medium Term Plan.

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

Recommended to Council that, subject to appropriate adjustments to Annex D to reflect the final settlements in relation to special and specific grants,  the proposed budget, Medium Term Plan and Financial Plan appended to the report now submitted be approved; and  that an increase of £4.67 in Council Tax, representing a level of £133.18 for a Band D property for 2013/14 be approved.

(Councillor T V Rogers, Chairman of the Overview and Scrutiny Panel) (Economic Well-Being) was in attendance and spoke on this item).

Further to Minute No.12/72 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 Medium Term Plan, the budget and associated level of Council Tax for 2013/14.

Attention was drawn to the latest government grant figures, Executive Councillors noted that the level of Revenue Support Grant and retained Business Rates was as predicted but that two new specific grants have been awarded which would marginally increase the revenue reserves by £226k.

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 £4.67p in order to meet unavoidable inflation and to preserve the Council’s reserves and valued services as far as possible both this year and in the future.

Executive Councillors were advised that the overall budget was 4.8% higher than the original budget for 2012/13 as a result of multiple factors with inflation being a major contributor.  Reference also was made to the introduction of more efficient working practices and the need to constantly strive to find efficiencies.  In that respect, Executive Councillors were advised that the Panel would be examining, in detail, the future budget process once the current budget has been completed.

Particular attention was drawn to the grant allocation to Town and Parish Councils towards their loss in income following the introduction of the Government’s Local council Tax Support Scheme.  In noting the Panel’s concerns over the abuse of the grant by some Councils, the Cabinet has reiterated that similar grants in future years could not be guaranteed.

In acknowledging the contributions of the Overview and Scrutiny Panel and having thanked Councillor Rogers for his attendance, Executive Councillors suggested that the Chairmen of the relevant Panel be invited to attend future Cabinet meetings when an item from their Panel is being considered.

Having noted that the business community supported the proposed Council Tax increase at a recent consultation meeting, the Cabinet

RECOMMENDED

  (a)  that, subject to appropriate adjustments to Annex D to reflect the final settlements in relation to special and specific grants,  the proposed budget, Medium Term Plan and Financial Plan appended to the report now submitted be approved; and

  (b)  that an increase of £4.67 in Council Tax, representing a level of £133.18 for a Band D property for 2013/14 be approved.

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

A copy of Annex E – 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).

(Councillors J D Ablewhite, Executive Leader and J A Gray, Executive Councillor for Resources were 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) 2014 – 2018) and the Budget and level of Council Tax for 2013/14 in advance of their consideration by Cabinet and final determination by the Council. By way of introduction, Councillor Gray reminded the Panel of Executive Councillors’ four financial objectives relating to achieving a balanced budget by 2016, the level of reserves, securing the Council’s finances after the New Homes Bonus ceased and capital borrowing. He then thanked the Financial Services Division for producing the documents under consideration in unusually challenging and complex circumstances.

The Head of Financial Services provided Members with a detailed explanation of the contents of the report. Their attention was drawn to a revised version of Annex D, which had been amended following Government confirmation of this year’s financial settlement. He also reported that after the current budget round, in response to a proposal made by the Panel’s Borrowing Working Group, the implications of funding shorter life assets from revenue would be considered. The Executive Councillor also indicated that this was something in which the Cabinet had an interest. He then welcomed the Panel’s suggestions for savings, which had been made at its previous meetings. He explained that the Cabinet was working to develop a clear plan to reduce the gap between income and expenditure and that the Budget represented the best compromise between achieving a balanced financial position and maintaining services. The Panel then proceeded to examine each section of the report in turn.

A Member drew attention to the fact that the overall budget was 4.8% higher than the forecast outturn for 2012/13. This was attributed to multiple factors but inflation was a major contributor. The Panel was advised of the historical reasons for the provision for performance related pay and the risk provision for future years, which would in future be influenced by the pay review.

With regard to the level of Council Tax, a Co-opted Member questioned whether the Council should introduce the maximum increase allowed and commented on the public’s perception of such a decision. In response, the Panel was reminded that historically the Authority had a low Council Tax base, that significant financial pressures had been faced in recent years and that the Council continued to subsidise services from reserves. The Council’s most significant cost continued to be its employees but reducing this cost was not easy because there was anecdotal evidence that the Council’s rates of pay were no longer attractive in comparison with other authorities. The Executive Councillor stated that a freeze in Council Tax would affect the Council’s ability to deliver services to the public and to maintain standards and in this regard it was appropriate to seek to bring the Council Tax up to a  ...  view the full minutes text for item 92