Agenda item

The Council is requested to consider the Cabinet’s recommendations on the Financial Plan, Medium Term Plan for 2011/15, the 2010/11 Budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the meeting of the Cabinet held on 11th February 2010) 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 2010/11 for the various parts of Huntingdonshire District.

A report by the Head of Financial Services is enclosed.

(Members are requested to note that the information contained in Appendix C should be treated as provisional at this stage.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos 67 and 68 of the Report of the Cabinet, the Executive Councillor for Finance, Councillor T V Rogers addressed the Council on the Financial Plan, Medium Term Plan 2011 – 2015, 2010/11 Budget and related prudential indicators contained in the Treasury Management Strategy and moved the recommendations of the Cabinet.  In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals as to the levels of council tax in 2010/11 for various parts of the Huntingdonshire District.

In his opening remarks, Councillor Rogers acknowledged the contribution and support of the Overview and Scrutiny Panels and members of the business community in the budgetary process.  He described the approach taken by the Cabinet towards treasury management which involved an inevitable degree of risk management in balancing interest rates and prudential indicators.  He suggested that the Council continued to be prudent in the management of its borrowing and investments.

In terms of the Financial Strategy, MTP and Budget, Councillor Rogers drew attention to the requirement to fund capital expenditure from borrowing, the decrease in levels of revenue reserves, the achievement thus far in reducing spending levels, the withholding of Government grant and the continuing low level of council tax equating to Huntingdonshire being ranked the 19th lowest district of 238 authorities in terms of their council tax levels.  Having described the implications of these issues in detail, Councillor Rogers concluded by advising that the Council expected to end the current financial year with revenue reserves of £11.2 million based upon an expectation that £12.9 million in revenue support would be received from Government and that £4.7 million from the reserve would be used to fund the deficit.  Councillor Rogers assured the Council that he would continue to search for efficiency savings and other sources of income and he urged all Members to continue to forward any additional suggestions for savings to him so that advantage could be taken of any opportunities that arose.

Accordingly, Councillor Rogers reported that, if supported by the Council, the budget would be increased by 2.49% resulting in a band D council tax of £124.17 or £2.39 per week.  He therefore commended the recommendations of the Cabinet to Council as set out in report by the Head of Financial Services.

In response, Councillor P J Downes, on behalf of the Liberal Democrat group, drew the Council’s attention to a paper circulated at the meeting which described a series of amendments proposed to the budget by his group.  A response by the Conservative group to these proposals also had been circulated (copies of both documents are appended in the Minute Book).

Councillor J D Ablewhite expressed the view that the Liberal Democrat group had had ample opportunity to identify proposals for savings through the budgetary process and to raise these at the meeting of the Overview and Scrutiny Panel (Economic Well-Being).

With reference to the Liberal Democrat proposals and with the consent of Councillor Downes, Councillor I C Bates moved and it was duly seconded -

  “That all the words in the first bullet point (on page 3 of the Liberal Democrat proposals) after the word ‘below’ in the first line be deleted and replaced with the words ‘be referred to the Employment Panel in the case of item 2 and to the Overview and Scrutiny Panel (Economic Well-Being)’ in the case of items 1 and 3 - 10 inclusive so that they can be investigated, implemented if appropriate or referred back for consideration as part of the budget process for 2011/12’,

  that all of the words in the second bullet point, be deleted; and

  that all of the words in the third bullet point be deleted,

  so that the amended Motion would read –

  ‘It is proposed that the amendments detailed in the table below be referred to the Employment Panel in the case of item 2 and to the Overview and Scrutiny Panel (Economic Well-Being) in the case of items 1 and 3 – 10 inclusive so that they can be investigated, implemented if appropriate or referred back for consideration as part of the budget process for 2011/12.’ ”.

Upon being put to the vote, the amendment was declared to be CARRIED.

In terms of the proposed level of council tax, Councillor Downes proposed that it be increased by an additional 0.5% to 2.99% to raise additional income and the baseline for future years should the Government grant be even lower.  He added that the additional 0.5% would add less than 1p per week to the average council taxpayer.

In response, Councillor Mrs M Banerjee encouraged Members to be mindful of the impact of any increase on the low paid and those on low incomes and indicated her support for the proposed increase of 2.49% only.

Councillor G S E Thorpe indicated his support for the higher level suggesting that the increased revenue that would be generated would avoid the necessity to introduce additional charges for car parking and enable the retention of the public conveniences in St Neots.

As Chairman of the Overview and Scrutiny Panel (Economic Well-Being), Councillor Ablewhite re-affirmed the opportunity that the Liberal Democrat group had had to raise their proposals on the budget at the Panel meeting.  He indicated his preference for a prudent and consistent approach to the tax base which had been recommended following detailed consideration by the Scrutiny Panel.

As Leader, Councillor Bates thanked those Officers who had contributed to the preparation of the budget, encouraged the Liberal Democrat group and other Members to bring forward their budget proposals at an earlier stage in the process, indicated that it was his belief that the budget was sensible, prudent and balanced and that it demonstrated the District Council’s commitment to the people in Huntingdonshire.

Following closing remarks by Councillor Rogers, Councillor Downes moved and it was duly seconded –

“That the proposed council tax level be increased by 0.5% to 2.99% giving a council tax rate of £124.77 for 2010/11, that Appendix C (pages 73 – 78) be replaced with the revised version attached and required consequential adjustments are made to the MTP, Budget and Financial Plan and the Treasury Management Strategy and Prudential Indicators;

that the recommendations from Cabinet are revised to read -

¨  approve the proposed MTP, Budget and Financial Plan as amended by the proposals in the paper submitted by the Liberal Democrat group;

¨  approve the Treasury Management Strategy for 2010/11 as amended by the proposals in the paper submitted by the Liberal Democrat group; and

¨  approve the Treasury Management Indicators and Prudential Indicators for 2010/11 as amended by the proposals in the paper submitted by the Liberal Democrat group; and

that the final recommendation of page 1 of the Council Book is revised to read –

  ‘approve a band D council tax of £124.77 for 2010/11 and the formal resolutions shown in Appendix C as amended by the Liberal Democrat proposals’.”.

Upon being put to the vote, the amendment was declared to be LOST.

Whereupon, it was

RESOLVED

(a)  that the proposed Budget for 2010/11, Medium Term Plan for 2011 – 2015 and Financial Strategy as set out in Annexes D, G and H to the Report of the Head of Financial Services now submitted be approved;

(b)  that the Treasury Management Strategy and Prudential Indicators as set out Appendix B to the Report of the Head of Financial Services now submitted be approved;

(c)  that a Council Tax increase of 2.49% representing a Council Tax of £124.17 for a Band D property in 2010/11 be approved;

(d)  that the amendments detailed in the table on page 3 of the Liberal Democrat proposals be referred to the Employment Panel in the case of item 2 and to the Overview and Scrutiny Panel (Economic Well-Being) in the case of items 1 and 3 – 10 inclusive so that they can be investigated, implemented if appropriate or referred back for consideration as part of the budget process for 2011/12; and

(e)  that the following amounts be calculated by the Council for 2010/11 in accordance with Section 32 and 36 of the Local Government and Finance Act 1992:-

  (f)  that the amounts of precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Police Authority and Cambridgeshire & Peterborough Fire Authority for each of the categories of dwellings listed in different valuation bands in accordance with Section 40 of the Act shown in table 1 attached be noted.

(g)  that, having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Local Government and Finance Act 1992, hereby sets the figures shown in table 2 attached to the Agenda as the amounts of Council Tax for 2010/11 for each of the categories of dwelling shown.