Issue - meetings

To consider the Cabinet's recommendations on the Medium Term Plan for 2015 - 2019, the 2014/15 budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 13th February 2014) 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 2014/15 for the various parts of Huntingdonshire District.  A report by the Assistant Director (Finance and Resources) is enclosed.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of debate on this item. 

Further to Minute No. 57 of the meeting of the Council held on 18th December 2013 and in conjunction with a report by the Assistant Director (Finance and Resources) (a copy of which is appended in the Minute Book) and Item Nos. 36 and 37 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the Medium Term Plan for the period 2014/15, the 2014/15 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 2014/15 for various parts of the Huntingdonshire district.

Before proceeding, Councillor K J Churchill moved, and it was duly seconded that, when appropriate, the recommendations contained in the report of the Assistant Director should be voted upon separately rather than taken together en bloc.  The Executive Leader contended that the Medium Term Plan and Budget should be supported in their entirety and not in a piecemeal way.  Upon being put to the vote, the Motion was declared to be LOST.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 and advice received from the Department of Communities and Local Government, the Chairman moved and it was duly seconded and

RESOLVED

that a recorded vote be taken on the conclusion of the debate on this item.

The Executive Councillor opened his remarks by suggesting that the proposed Budget/Medium Term Plan demonstrated the significant progress made by the authority in a difficult year.  Councillor Gray expressed his appreciation to Messrs S Couper and C Mason for their assistance over this period.  Councillor Gray also took the opportunity to thank Mr Couper for all his hard work for the District Council and for helping to make a difficult subject easier to understand.  He concluded by wishing Mr Couper a long and happy retirement. 

Referring to the key elements of the proposed budget, Councillor Gray reminded Members of the position in which the Council had found itself in February 2013 and the significant changes that had taken place since then to vary the Council’s position.

Having taken into account the advice of the Overview & Scrutiny Panel (Economic Well-Being), the Cabinet had concurred with the recommendations not to raise Council Tax in the financial year 2014/15, to review capital spending by 2015/16 and to earn a margin on the interest on loans to other bodies referred to in the Treasury Management Strategy.  The Executive Councillor also was pleased to report that the Business Community had been consulted on the Council’s financial strategy and had been impressed that the Council had made savings without any significant impact on service levels.

Members’ attention was drawn to the anticipated improvement in the Council’s financial position at the end of 2018/19 as illustrated in Appendix B of the report which reflected –

¿  an increase of £1.5m in reserves;

¿  savings of £2.1m;

¿  0% or 2%  ...  view the full minutes text for item 67

To consider a report by the Assistant Director, Finance and Resources on the 2014/15 Budget and Medium Term Plan.

(A copy of the separate appendix of budget tables has been circulated separately to Cabinet Members and is also available at www.huntingdonshire.gov.uk)

Recommended to Council that, subject to the amendments shown in the Budget Update note and any detailed consequential amendments to the Tables, the proposed Budget and Medium Term Plan appended to the report be approved; that the breach in the 15% limit on Net Interest and Borrowing Costs be noted and the actions outlined in paragraph 8.6c of the report, to mitigate the impact, be endorsed; and that that there be no increase in Council Tax for 2014/15, i.e. Band D charge will remain at £133.18.

Subject to approval of the Budget by Council, it was also agreed that the additional approvals required for those MTP schemes highlighted in Table 4 be approved.

(Councillors S Criswell, Chairman of the Overview and Scrutiny Panel (Social Well-Being) and T V Rogers, Chairman of the Overview and Scrutiny Panel (Economic Well-Being,) were in attendance and spoke on this item).

Further to Minute No.13/55 and 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 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 2014/15. Updated versions of Tables 1 to 6 were also circulated these had been expanded to provide a breakdown of the figures relating to salaries, government grants and fees & charges.

Attention was also drawn to a Budget Update note which summarised the impact of the Government’s recent announcement that the Council Tax Freeze Grant would now be built into the base rather than just being awarded for 2 years.

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 Authority  should freeze its level of Council Tax for the forthcoming year and accept the Government’s Council Tax Freeze Grant.

With regard to the use of revenue reserves, Executive Councillors have been advised that a balance had been taken between progress on saving and the use of reserves in order to ensure that savings were properly targeted and effectively delivered to manage service impact. It was reported that net interest and borrowing costs would increase to 16.4% in 2018/19.  In that respect, the Cabinet considered the options available to them to keep within the limit of 15% set by Council.  Given the current financial circumstances, the potential for capital savings through the Facing the Future exercise and the beneficial impact of future margins on loans to other bodies, the Cabinet concurred with the Panel that they would recommend that the 16.4% position should be accepted. It was noted that the Cabinet intends to closely monitor capital spending and that the Treasury Management Group would take a close interest in this, as well as any investment schemes, because of their impact on borrowing and investments.

Discussion also ensued on proposals put forward by the Liberal Democrat Group, in respect of which the Cabinet noted that the future of the Cromwell Museum was already being considered by Huntingdon Town Council and that the issues associated with the pay review are being considered elsewhere.  Members concluded that it would be appropriate to consider all the other issues as part of the Facing the Future exercise.

In response to a question by the Cabinet on the need to ensure very effective budget monitoring, especially on savings items, the Managing Director confirmed that this was a very high priority.

Having noted the comments arising from the consultation with the business community on expenditure proposals and in acknowledging the contributions of the  ...  view the full minutes text for item 70

To consider a report by the Assistant Director (Finance and Resources) prior to its consideration by Cabinet.

(A copy of the separate appendix of budget tables has been circulated separately to Panel Members and is also available at www.huntingdonshire.gov.uk

(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 Assistant Director (Finance and Resources) (a copy of which is appended in the Minute Book) the Panel considered the Council’s proposed Budget, Medium Term Plan and Council Tax level for 2014/15. A note on the decision by the Department of Communities and Local Government on the Council Tax Freeze Grant and its implications for the Council had also been circulated prior to the meeting.

Councillor J A Gray reported that significant progress had been made during the past year. The forecast outturn had been better than expected and savings continued to be successfully identified and delivered which would result in forecast savings of £1.6M being achieved in the current year. This meant that the level of the Council’s reserves remained higher than anticipated. He then outlined the Cabinet’s aspiration to deliver a balanced budget for 2017/18 which required the Council to push forward with a programme for the delivery of savings in the region of £2.4M during this period. Loss of income from the New Homes Bonus continued to be a major risk for the Council. He then explained why he thought there should be no increase in Council Tax for the forthcoming year.

The Chairman reported on the discussions he had held with a number of Panel Members and his intention to establish a small working group to examine the gross costs of capital. It was agreed that Councillors S Greenall, P G Mitchell, T V Rogers and A H Williams should be appointed to the Working Group for this purpose.

Following a detailed explanation of each section of the report by the Assistant Director (Finance and Resources), Members were advised that the combination of a robust budget process and the Council’s current level of reserves should give Members no concerns over the Council’s financial position for 2014/15. It however, remained critical that effective progress was made in identifying how the required savings for future years would be achieved and that careful monitoring continued to take place.

In response to questions, Members received clarification of the increased costs that had been identified since the draft budget was published. Councillor M F Shellens requested information on the geographical area of the car parking volume reduction. Members also discussed the provision that had been made for NNDR appeals and were informed that there was an ongoing drive from the District Council’s Network to address this issue.

The Panel discussed the Council Tax Freeze Grant. Members were informed that the impact of this Grant would be equivalent to an increase in Council Tax of 1%. It was suggested that representations should be made to Government that offering the Grant on a percentage basis rewarded high taxing Councils. In terms of those items that were outstanding and would require assumptions to be made in order to finalise the Budget, the Panel discussed the impact of the pay review on employee turnover.  ...  view the full minutes text for item 80