Agenda item

To consider the Cabinet's recommendations on the Medium Term Plan for 2013 - 2017, the 2012/13 budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 16th February 2012) 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 2012/13 for the various parts of Huntingdonshire District.  A report by the Head of Financial Services is enclosed (it is the expectation that the tables to the formal resolution will be circulated at the meeting).

(See Minute No. 55 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. 56 and 57 of the Report of the Cabinet, the Executive Councillor for Resources addressed the Council on the Medium Term Plan, 2012/2013 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 2012/2013 for various parts of the Huntingdonshire District.

 

In his opening remarks, Councillor Gray acknowledged the contribution made to the budgetary process by the Overview and Scrutiny Panel (Economic Well-Being) and Members of the business community.  He also described the approach taken by the Cabinet towards Treasury Management which had 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.

 

Although not wishing to repeat the points raised at the last meeting, Councillor Gray made reference to several other issues which would impact on the budget.  The most significant of these related to pay and allowances, voluntary sector and disabled facilities grants and a proposed new homes bonus of £1.913m which was £37,000 greater than previously forecast.  In terms of risks and reserves, Councillor Gray referred to the examples which had been used to measure the potential impact of various international financial issues on the Council’s financial position and how these had been used to establish a lower end figure for inclusion in the budget as the risk provision and a higher end figure in the event that an extra level of risk might emerge.  At the suggestion of the Overview and Scrutiny Panel (Economic Well-Being) and having regard to the advice contained in Annexes C and D hereto, the proposed budget was based on not allowing reserves to fall below £4.5m.  With the assistance of the Panel, this position would be reviewed again in September to ensure it remained appropriate.

 

Having regard to Council Tax levels, the Executive Councillor for Resources advised the Council that although acutely aware of the difficulty any increase in Council Tax could present to those with limited incomes, the Cabinet had decided not to recommend acceptance of the Government’s offer of a 2.5% increase in grant as this would place the Council at a clear disadvantage in the future and make it difficult to manage innovatively to preserve valued services.

 

Having regard to the view expressed by the Council on the draft budget and MTP at the last meeting, the Executive Councillor described the significant adjustments which had been made to the budget since then which now included a major proportion of the voluntary sector grant budget and funding for CCTV and service centres in St. Neots and Yaxley which has specifically been highlighted to Members.  Councillor Gray believed that the proposed budget had achieved a balance which protected services for residents and met the responsibilities of the Council as an employer.  In commending the proposed budget and MTP to the Council, Councillor Gray reminded Members that a significant effort would be required to maintain current achievement of a balanced budget and he called on all Members to continue to work together to generate new ideas to provide a continuing sound financial basis for the future.

 

In response, Councillor P J Downes, on behalf of the Liberal Democrat Group indicated that it would not be his intention to propose an amendment to the budget given the opportunity offered to comment on it through the Overview and Scrutiny Panel (Economic Well-Being) and in view of the limited flexibility which remained to vary it further.  Councillor Downes acknowledged that potentially, the Council’s financial situation would remain uncertain for many years but he welcomed the strenuous efforts which had been made to make savings.  He particularly commended the decision of staff to accept a pay freeze in 2012/2013 but suggested that next year’s pay award should seek to reduce the differential between those on higher and lower grades.  Whilst welcoming the re-instatement of part of the voluntary sector grants budget, Councillor Downes expressed concern at the potential impact of forthcoming changes to benefit legislation on the voluntary sector but welcomed the sensible collaboration between neighbouring authorities in the sharing of services suggesting that council tax collection could be a possible shared service in the future.

 

Regarding the long term structure of the Council, Councillor Downes suggested that consideration should be given to a reduction in the overall size of Council membership and the Cabinet and in the number of senior staff.  In terms of the former he contended that an opportunity to review Ward boundaries in future years could reduce the number of Councillors from 52 to 39 and save an estimated £160,000 - £170,000 per annum.

 

Having also commended work undertaken on the proposed budget, Councillor S Greenall reiterated his concern at the cost of hire staff and consultants with the latter well in excess of the sum originally budgeted.  He added that he had enjoyed his role as Vice-Chairman on the Overview and Scrutiny Panel (Economic Well-Being) and the detailed work undertaken by the Panel on One Leisure and the Document Centre which had uncovered an opportunity to save approximately £21,000 on external printing.  Councillor Greenall also commended the staff employed in the document centre.

 

As Executive Leader, Councillor Ablewhite referred to the extensive discussions with the voluntary sector which had led to the reinstatement of grant funding.  In particular, Councillor Ablewhite indicated that the Citizens Advice Bureau had received 88% of its funding from the District Council which compared very favourably with the contributions made by neighbouring authorities.  Whilst lower than in previous years, the Bureau had indicated their availability to work within reduced parameters and given an assurance that voluntary groups would not suffer because of any reduction proposed.

 

A Motion for a recorded vote having been LOST, it was moved by Councillor J A Gray, duly seconded and

 

RESOLVED

 

  (a)  that the proposed budget for 2012/2013, Medium Term Plan for 2013 – 2017 and financial plan as set out in Appendix A to the report by the Head of Financial Services now submitted be approved;

 

  (b)  that the Treasury Management Strategy and prudential indicators as set out in Appendix B to the report by the Head of Financial Services now submitted be approved;

 

  (c)  that a Council Tax increase of £4.34 (3.5%) representing a level of £1.28.51 for a Band D Property be approved for 2012/2013;

 

  (d)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (set out below) as approved by the Chief Officers’ Management Team on the 5 December 2011 under delegated powers.

 

  The tax base (T) which is the amount anticipated from a District Council Tax of £1 is £60,125.

 

  (e)  that the following amounts be calculated by the Council for 2012/13 in accordance with the requirements of the Local Government Finance Act 1992 as amended by the Localism Act 2011 (the Act) :-

(i)    the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) (a) to (f) of the Act   Gross revenue expenditure including benefits, Town/Parish Precepts	£86,444,605
(ii)  the aggregate of the amounts which the Council estimates for the items set out in Section 31A (3) (a) to (d) of the Act    Revenue income including reimbursement of benefits, specific and general grants, use of reserves and any transfers from the collection fund.	£74,010,336
(iii)  the amount by which the aggregate at (i) above exceeds the aggregate at (ii) above in accordance with Section 31A (4) of the Act   This is the “Council Tax Requirement” including Parish/Town Precepts (item i minus item ii). It is the cash sum to be funded from District, Town and Parish Council Taxes.	£12,434,269
(iv)  the Council Tax requirement for 2012/13 divided by the tax base (T) in accordance with Section 31B (1) of the Act   District plus average Town/Parish Council Tax (item iii divided by District taxbase)	£206.81
(v)  the aggregate of all “Special Items” referred to in Section 34(1) of the Act.   The total value of Parish/Town precepts included in i and iii above.	£4,707,605
(vi)  the Basic Amount of Council Tax for 2012/13 being item iv less item v divided by the tax base (T) in accordance with Section 34 (2)  of the Act.   The District Council’s Band D Tax for 2012/13.	£128.51
(vii)  the basic amounts of Council Tax for 2012/13 for those parts of the District to which one or more special items (Parish/Town precepts) relate in accordance with Section 34 (3) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount in column "band D" set out in Table 1 attached to the Agenda.
(viii)  the amounts to be taken into account for 2012/13 in respect of categories of dwellings listed in particular valuation bands in accordance with Section 36 (1) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount for each of the valuation bands in the columns "bands A to H" set out in Table 1 attached to the Agenda.

 

  (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 to the Agenda be noted; and

 

  (g)  that, having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Act, hereby sets the figures shown in Table 2 as the amounts of Council Tax for 2012/13 for each of the categories of dwelling shown. This is the total Council Tax to be collected, incorporating the requirements of all of the relevant bodies, for each town or parish area.

 

TAXBASE 2012/13

 

    £

 

  Abbotsley   249

  Abbots Ripton   127

  Alconbury  561

  Alconbury Weston   276

  Alwalton   125

  Barham & Woolley   26

  Bluntisham   750

  Brampton  1,820

  Brington & Molesworth   136

  Broughton   87

  Buckden   1,170

  Buckworth   50

  Bury   610

  Bythorn & Keyston   137

  Catworth   144

  Chesterton   59

  Colne   360

  Conington   73

  Covington   43

  Denton & Caldecote  25

  Diddington   28

  Earith   580

  Easton   72

  Ellington   233

  Elton   294

  Farcet   580

  Fenstanton   1,170

  Folksworth & Washingley   342

  Glatton   132

  Godmanchester   2,455

  Grafham   237

  Great & Little Gidding  122

  Great Gransden   458

  Great Paxton   370

  Great Staughton   325

  Haddon   25

  Hail Weston   235

  Hamerton & Steeple Gidding   53

  Hemingford Abbots   333

  Hemingford Grey   1,195

  Hilton   452

  Holme   239

  Holywell-cum-Needingworth   985

  Houghton & Wyton   805

  Huntingdon   7,465

  Kimbolton & Stonely   600

  Kings Ripton   83

  Leighton Bromswold   85

  Little Paxton   1,340

  Morborne   10

  Offord Cluny & Offord D’Arcy   510

  Old Hurst   98

  Old Weston   90

  Perry   262

  Pidley-cum-Fenton   152

  Ramsey   2,930

  St Ives   5,840

  St Neots   10,820

  Sawtry   1,725

  Sibson-cum-Stibbington   215

  Somersham  1,395

  Southoe & Midloe  158

  Spaldwick   235

  Stilton   795

  Stow Longa   64

  The Stukeleys   415

  Tilbrook   111

  Toseland   38

  Upton & Coppingford   87

  Upwood & The Raveleys   430

  Warboys   1,375

  Waresley-cum-Tetworth   146

  Water Newton   40

  Winwick   40

  Wistow   216

  Woodhurst   152

  Woodwalton   85

  Wyton-on-the-Hill   425

  Yaxley   3,000

  Yelling  145

 

  DISTRICT COUNCIL TOTAL 60,125