Issue - meetings

To consider a report by the Assistant Director, Finance and Resources.

Recommended to Council they consider the contents of the report and acknowledge the significant financial uncertainty for local authorities; confirm that there will be no grants relating to the impact of Council Tax Support to Town and Parish Councils in 2014/15 and subsequent years; support the Financial Forecast as the basis to estimate the potential level of savings required by the authority; and they request the Managing Director to identify proposals for additional major savings for 2015/16.

By way of a report by the Assistant Director, Finance and Resources (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 2018/19 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 informed of progress to date in the achievement of savings and have acknowledged the major financial challenges facing the authority arising from the Government’s Spending Review.  Particular attention was drawn to the Government’s limit for Council Tax increase in the current year, uncertainty surrounding the level of Government Formula Grant and a proposed requirement for local authorities to pass a significant portion of New Homes Bonus to the Local Enterprise Partnership.  The Cabinet acknowledged that the Government’s Review had created additional major financial challenges for the Council and its ability to deliver its current portfolio of services.  Furthermore, mention was made of the uncertainty that surrounded Government support for Councils after the 2015 General Election with a potential for a fall in grant of 2.5% per year.

In discussing existing savings proposals, Members considered whether to continue with a grant to Town and Parish Councils previously awarded as compensation for changes in funding arising from the Government’s Local Council Tax Support Scheme.  Given the challenges being faced by the authority as a result of the budgetary cuts, Members felt that this grant should not be continued beyond the current financial year, subject to there being no change in Government legislation.

With regard to additional savings requirements, Executive Councillors recognised the need to focus on the larger areas of the Council’s expenditure and the importance of communication to ensure that Huntingdonshire residents are able to influence and remain informed of the process.

Having noted that the Managing Director was currently developing a performance management framework to link the Leadership Direction with the Budget/MTP

RESOLVED

  that Council be recommended to;

(a)  consider the contents of the report and acknowledge the significant financial uncertainty for local authorities;

(b)  confirm that there will be no grants relating to the impact of Council Tax Support to Town and Parish Councils in 2014/15 and subsequent years, subject to there being no change in Government legislation;

(c)  support the Financial Forecast as the basis to estimate the potential level of savings required by the authority; and

(d)  request the Managing Director to identify proposals for additional major savings for 2015/16.

To consider and comment on a report by the Assistant Director, Finance & Resources prior its submission to the Cabinet.

(Councillor J D Ablewhite, Executive Leader, and Councillor J A Gray, Executive Councillor for Resources, were in attendance for this item).

Consideration was given to a report by the Assistant Director, Finance and Resources (a copy of which is appended in the Minute Book) in relation to the Council’s financial forecast. By way of introduction, the Executive Leader explained that the Authority faced a significant challenge. The outcome of the latest Government Spending review had placed additional pressures on the Council’s finances and on its ability to deliver its current portfolio of services. This would require all Members to work together to bring forward tangible and innovative solutions. The Cabinet would be receiving an options paper for this purpose at the earliest opportunity. He emphasised that the forthcoming months would be difficult for the Authority, as work would need to be undertaken to develop Budgets for 2014/15 and 2015/16 in tandem.

Councillor J A Gray emphasised that the Authority faced a difficult situation. This would require decisions to be taken on the provision of Council services and service levels, taking into account the requirements of Huntingdonshire residents. Consideration would need to be given to the ways in which the Authority engaged with the public to establish what local communities want local government to deliver.

The Assistant Director, Finance and Resources provided the Panel with an explanation of detailed aspects of the report. Members’ attention was drawn to the progress which had been made to achieve the previously identified savings requirements and the factors which had been taken into account in establishing the forecast position. Whilst uncertainty about the final figures remained, it was reasonable to assume that extra savings of around £2.6M need to be found for 2015/16 increasing to £3.7M by 2018/19. To begin the process of identifying savings, the Cabinet would be considering a report at its September meeting that outlined a range of options and approaches.

In considering the outcome of the recent Spending Review, the Panel discussed the Government proposal to require local authorities to pass on a percentage of their New Homes Bonuses to their Local Enterprise Partnerships. In response to a question whether this should have been foreseen, the Executive Councillor explained that it had not been expected that this would have materialised before 2015 and that he and the Executive Leader intended to lobby the Department for Communities and Local Government to reduce the level of the Council’s loss. He suggested that if funding were to be changed in this way it should be done in a more constructive or phased manner.

Members were reminded that the Local Enterprise Partnership comprised local Council leaders and that the majority of spend thus far had been on local government initiatives. In response to an observation that there had been no scrutiny of the Local Enterprise Partnership thus far, it was suggested that its Chairman and the Chief Executive should be invited to a future meeting of the full Council to give a presentation on its  ...  view the full minutes text for item 30