Issue - meetings

To consider a report by the Head of Resources on the draft 2015/16 Revenue Budget and Medium Term Financial Strategy (2016/17 to 2019/20).

That the contents of the report now submitted be noted.

Consideration was given to a report by the Head of Resources (a copy of which is appended in the Minute Book) setting out the draft budget for 2015/2016 and the Medium Term Financial Strategy (MTFS) for the period 2016/17 – 2019/20.

Councillor J A Gray, Executive Councillor for Resources, acquainted Members with details of the draft budget for 2015/16 and advised the Cabinet of its significance which had resulted in a net saving of £1.8m from the 2014/15 forecast outturn budget. Executive Councillors were also advised of the continuation of the Facing the Future programme, proposed Council Tax freeze at £133.18 for 2015/16 with its impact on reserves from 2016/17 to 2019/20 and assumptions based upon the New Homes Bonus allocation funding.

An addendum to the report was also circulated which outlined a further proposed £650k reductions in the budget and Councillor Gray paid tribute to Officer’s contributions in achieving this result. The Head of Resources further explained the background to the process, including details of the Zero Based Budgeting exercise which had achieved the savings to the budget. Attention was also drawn to the inclusion of unavoidable growth expenditure and the impact of Central Government funding, with potential changes in the funding philosophy if there is a change in Government in May 2015. Executive Councillors summarised details of the further reductions in the budget which had resulted from the deletion of vacant posts and reduction in management costs and discussed the areas that needed further investigation.

Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Economic Well-Being) and Councillor R Harrison, Chairman of the Panel, advised Members that the Panel had been encouraged by the savings that had been achieved to date and indicated the Panel’s support of the general intention not to use reserves, together with the proposal to freeze Council Tax for 2015/16 and freeze over the period of the MTFS. Given the future uncertainty, the Panel supported the proposal to review the position next year and endorsed the proposal that reserves should not fall below £3m. In noting that the final budget would be reported to Members at their next meeting, the Cabinet

RESOLVED

  that the contents of the report now submitted be noted.

To consider a report by the Head of Resources.

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

(Executive Councillors J D Ablewhite, B S Chapman and J A Gray were in attendance for the discussion on this item).

Consideration was given to a report by the Head of Resources (a copy of which is appended in the Minute Book) on the draft 2015/16 Revenue Budget and Medium Term Financial Strategy (MTFS) 2016/17 to 2019/20.

The Panel welcomed the new format of the report and supported the Executive Councillor for Resources’ expression of gratitude for the work of the Resources section in preparing the Budget. Members further recognised the significant milestone that producing a Budget surplus represented.

The Panel was acquainted with the provisions made and trends in various areas and questioned Executive Councillors about the saving they had made, what their plans were for the future and what impact any changes would have on the public. Members noted:

·  the portfolio for Customer Services had identified in the order of £500k in savings. This was in addition to £2m in savings in recent years. Further areas of potential savings were being investigated;

·  the portfolio for Resources had identified approximately £450k in savings. This portfolio would make significant investments in the next few years to generate income, and

·  the Executive Leader referred to his intention to pursue an overall strategy of investment in assets to produce income coupled with a more commercial approach to appropriate services. He would challenge Officers to achieve savings targets earlier than indicated in the report and stressed that, where changes were to be made to services, Overview and Scrutiny would be involved in assessing their impact on residents.

The aim was for the Council to produce a surplus each year and capital investments were a key way that this would be achieved. The current report did not contain figures for asset investments. Generally, it was expected that for every £13m invested, £1m of income would be produced. The Council could potentially borrow £60m and it was planned to introduce a framework to enable investment decisions to be made. Members supported this approach and asked for regular monitoring reports on progress.

The Panel was made aware that future government grant was likely to change if there was a change in Government. There was a possibility that the eligibility criteria would change from a performance basis to a needs basis. The Panel noted that the District would still qualify for grant if the latter was introduced. The other way that income from the Government might vary was through changes to the New Homes Bonus. However, it was likely that if it was removed, this income would be received in another form.

All areas of the Council would be defining their service standards and levels over the next year. The Panel was of the view that the impact of any changes should be assessed. A comment was made that benchmarking should take place; in which case, some areas could potentially experience an increase in their standards.

On the question of Council Tax, the Panel noted that  ...  view the full minutes text for item 73