Agenda item

To consider the Cabinet’s recommendations on the Medium Term Plan for 2012/16, the 2011/12 Budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the meeting of the Cabinet held on 17th February 2011) 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 2011/12 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 confidential at this stage.  The formal resolution which forms part of Appendix C is to follow.)

(See Minute No. 71 for Members’ interests.)

In conjunction with a report by the Head of Financial Services (a copy of which is appended in the Minute Book) and Item Nos. 57 and 58 of the Report of the Cabinet, the Executive Councillor of Finance and Customer Services addressed the Council on the Medium Term Plan, 2011/2012 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 for the levels of council tax in 2011/2012 for various parts of the Huntingdonshire District.  Councillor Rogers also drew the Council’s attention to a further document (a copy of which also is appended in the Minute Book) regarding the adjustments to the Council’s budget which had been required because of subsequent announcements by Government in respect of the formula (RSG) and New Homes Reward grants.

In his opening remarks, Councillor Rogers acknowledged the contribution made to the budgetary process by the Overview and Scrutiny Panel (Economic Well-Being), members of the Business Community and Town and Parish Councils.  He also described the approach taken by the Cabinet towards Treasury Management which involved a degree of risk management in seeking to achieve a balance between investment and return.  He suggested that the Council continue 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 those issues underlining the recommendations of the Cabinet.  He explained that the proposal not to increase the council tax in 2011/2012 would require a reduction of £3.6m from revenue reserves, that the Government had now confirmed Revenue Support Grant of £10.5m in 2011/2012, an indicative figure of £9.3m for 2012/2012 and a New Homes Bonus of £800,000 in 2011/2012.  Councillor Rogers assured the Council that Executive Councillors, the Overview and Scrutiny Panel (Economic Well-Being) and Heads of Service had continued to search for efficiency savings and that those identified had either been incorporated into the budget or were the subject of further consultation and debate.

Brief reference also was made by Councillor Rogers to other issues which would impact on the budget.  These related to the review of pay and allowances which it was anticipated would be reported to the Employment Panel shortly and the review of the income and operation of the voluntary sector.  Following representations made to the Council by petitioners, Councillor Rogers announced that St. Ives Customer Service Centre would close, that St. Neots Centre would remain open three days per week and that the Yaxley and Ramsey Centres would be retained for two days per week.  In the latter case, the offices would remain available for use by voluntary organisations throughout the week.  The hours and establishment of the Huntingdon Office and Call Centre still was subject to review.

In response, Councillor P J Downes on behalf of the Liberal Democrat Group acknowledged that the current economic situation would impact significantly on the public sector.  He was doubtful whether town and parish councils would be able to reduce the impact of the savings proposals on their areas given the limited opportunities they had to raise precepts.

Councillor Downes commended the manner in which the budgetary process had been conducted and the opportunities it offered to his group to contribute.  He also expressed some disquiet at the notion of “Big Society” and although hopeful that the public would respond, he was of the view that such volunteers and groups would require to be managed and administered.  In urging the Council to continue to support the voluntary sector, Councillor Downes moved and it was duly seconded –

“that the following words be added after the second bullet point on the yellow page of the supplementary document –

“and subject to –

(a)  the Council acknowledges the invaluable role of the voluntary sector in promoting well-being in Huntingdonshire;

(b)  the Council welcomes the intention of the Executive Councillor for Finance and Customer Services to undertake a review of the way in which the Council offers support to local voluntary organisations;

(c)  the Council recognises the need for the voluntary sector to have long-term security for its forward planning and activity development; and

(d)  the Council requests the Cabinet to identify alternative savings to allow the financial support for the voluntary sector to be retained when the MTP is reviewed during the coming year.”

Upon being put to the vote, the proposed amendments in (a), (b) and (c) were declared to be CARRIED and the proposed amendment in (d) was declared to be LOST.

Councillor C R Hyams made reference to the proposals for the CCTV service and the extensive use of the service by the police and he informed the Council that discussions were continuing with Cambridgeshire Police to seek a satisfactory new arrangement.

Councillor J D Ablewhite commended the recommendations of the Cabinet to the Council and the contributions made by Officers and Members to the budgetary process.  He welcomed the opportunity to recommend a budget which would not involve an increase in council tax nor impose any additional burden on Huntingdonshire residents. 

Referring to the obligation placed on the Council to publish items of expenditure over £500, Councillor S Greenall requested the Executive Councillor to advise the Council how much was spent on specific expenditure headings.  In reply, Councillor Rogers advised the Council of the following:-

£506,000 on consultants

£369,000 on hired staff

£  49,000 on mobile ‘phones

£375,000 on training

£212,000 on advertising.

Councillor J D Ablewhite advised the Council that the Overview and Scrutiny Panel (Economic Well-Being) currently were undertaking a study on the use of consultants and it was anticipated that a report on their findings would be available shortly.  Further to the future of the customer services centre, Councillor P A Swales asked to be advised in writing as to which days or part-days the Ramsey Office would be opened.  Whereupon, it was

RESOLVED

  (a)  that the proposed budget for 2011/2012, Medium Term Plan for 2012 – 2016 and Financial Strategy as set out in Appendix A to the report of the Head of Financial Services now submitted be approved;

  (b)  that the Director of Commerce and Technology be authorised to adjust the budget and Medium Term Plan using revenue reserves to respond to the Government’s announcements in respect of the Government Formula Grant (RSG) and New Homes Reward Grant;

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

  (d)  that no increase be made in Council Tax for 2011/2012;

  (e)  that the Council acknowledges the invaluable role of the voluntary sector in promoting well-being in Huntingdonshire;

  (f)  that the Council welcomes the intention of the Executive Councillor for Finance and Customer Services to undertake a review of the way in which the Council offers support to local voluntary organisations;

  (g)  that the Council recognises the need for the voluntary sector to have long-term security for its forward planning and activity development;

  (h)  that the following amounts be calculated by the Council for 2011/2012 in accordance with Sections 32 and 36 of the Local Government and Finance Act 1992 –

  (i)  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 the Agenda be noted.

  (j)  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 as the amounts of Council Tax for 2011/12 for each of the categories of dwelling shown.