Agenda item

To consider and comment on a report by the Head of Financial Services prior to its submission to the Cabinet.

(Councillor T V Rogers, Executive Councillor for Resources and Customer Services, was in attendance for this item)

(Councillors J D Ablewhite, I C Bates, M Banerjee, N J Guyatt and P J Downes also were in attendance for this item).

Consideration was given to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) in relation to the Council’s financial forecast for the period to 2024/25. By way of introduction, the Head of Financial Services acquainted Members with detailed aspects of the report including the potential for variations in a number of sources of income and other factors that could affect the Council’s financial position. The Panel also received an update on progress made to-date in the achievement of avings and has noted the uncertainty surrounding the forecast and a number of assumptions which would be clarified over the next few months.

In considering the contents of the report and in response to a number of questions, the Head of Financial Services explained that the Government had not yet announced whether it would impose a limit on Council tax increases for next year. The Managing Director (Resources) outlined the savings which had been accrued to-date or were expected as a result of the reorganisation of senior managers.  

Discussion then ensued on the approach the Council might take to setting the Council Tax for 2012/13.  Following a suggestion that an analysis should be undertaken of the implications of not increasing the Council Tax next year, the Panel agreed that this should be included in the range of options under consideration.  Members noted that it would require an increase of 30% for Huntingdonshire to reach the current average level of Council Tax for District Councils.. The Head of Financial Services explained that there had been no indication that there would be any financial incentive for authorities to retain their current Council Tax levels for the forthcoming year. Having received a comment by a Member that an increase of 5% would cover the lower end of the unidentified savings, the Panel concluded that all council tax options should be considered during the budget setting process.

In response to a question on the implications of the transfer of housing benefit to the Department of Work and Pensions, the Executive Councillor for Resources and Customer Services explained that the timetable for the establishment of a universal credit system was ambitious and the impact of the transfer on the Council’s budget was still unclear. Members were also informed that the transfer would affect the Council’s Fraud Team.

With regard to the Council’s planned savings through changes to employees’ pay and allowances, the Panel noted that the introduction of a revised salary scale would make savings significantly greater than those included in the budget. On the current consultation process with employees, comment was made by a Member on the need to ensure that the changes applied to all levels of employees to demonstrate equity and leadership in this matter.  The Executive Leader explained that the current pay proposals were designed to replace an antiquated and inequitable system and that the changes would apply to the whole establishment. It was then suggested by a Member that there would be a need to monitor the effect of budget savings on services provided to the public.

The Panel discussion then ensued on the savings which had been achieved and those that had been identified in the forecast, It was put forward that the Council should take into account whether front-line or support services were involved when saving were being planned.  Members were reminded that the Panel’s review of the Council’s support services would commence shortly. It was then suggested that the Council should review its existing plans, adopt a flexible approach and be more rigorous in its identification and analysis of options for changes to the way services were delivered.

With regards to CCTV, Members were informed that the future of the service was currently the subject of investigations into its funding options and this, together with the outcome of the review into grants for voluntary services, would be reported to Members to enable them to take the findings into account during the budget setting process. It was also explained that there were a number of potential additional savings which could not be confirmed until the outcome of further investigations was known. The view was expressed that the Council should examine the opportunities to make savings amongst those functions which had not already had their budgets reduced.

Other comments made during the Panel’s deliberations included the expression of a view that as a non-statutory function the leisure service should make greater savings than those currently planned and that the Council should not assume it would get the full benefit of the New Homes Bonus as parishes would expect to have a say in how it was used. Whereupon, and having noted that their comments would be conveyed to the Cabinet for their consideration, the Panel

RESOLVED

a)  that the contents of the report be noted; and

b)  that the recommendations that the Council should continue to use the annuity basis for the calculation of Minimum Revenue Provision as outlined in Annex E to the report now submitted be endorsed.