Agenda item

Councillor J A Gray, Executive Councillor for Resources to update the Council, by reference to a report by the Head of Financial Services, on progress towards the Budget 2013/14 and Medium Term Plan.

By reference to a report by the Head of Financial Services (a copy of which is appended in the Minute Book) Councillor J A Gray, Executive Councillor for Resources presented the draft budget 2013/2014 and MTP 2013/2017.  Councillor Gray advised the Council that due to some delay to Government announcements, he could only update the Council on various issues and anticipate the position which the Council might find itself in when required to approve the 2013/2014 budget and MTP at their next meeting in February 2013.

Despite this outlook, Councillor Gray drew the Council’s attention to Annex A to the report of the Head of Financial Services which highlighted the extent of activities which were underway or forecast.  Although not yet aware of the details of Government funding for Huntingdonshire in 2013/2014, Councillor Gray forewarned Members that information thus far suggested that there would be a reduction in funding for local government generally.

The Council was reminded of the financial objectives of the Cabinet and advised of progress achieved towards these targets to-date.  It was explained that the Council was on course to achieve a balanced revenue budget by the financial year 2016/2017, that it was anticipated that revenue reserves would stabilise at £5.4m from 2015/16 and that work was continuing to establish a clear protocol for borrowing and investment to deliver tangible returns.  Councillor Gray was able to announce that the level of new home bonus allocated by the Government was as expected, which removed an element of uncertainty from the draft budget. 

Councillor Gray continued to review the remainder of the report in detail drawing Members’ attention to matters of particular interest.

In terms of council tax levels, Councillor Gray was pleased to announce that discussions between the Executive Leader and Baroness Hanham had appeared to influence the council tax principles proposed for 2013/2014.  These would provide an option for those Shire District Councils with historically low council tax to consider an increase to council tax of up to 2% or £5 without the need for a referendum.  This announcement would offer the Council greater flexibility in proposing a budget for 2013/2014. 

It was also made clear that although employees had been offered a 2% pay award to be payable from 1st April 2013, no performance increments would be recommended.

Councillor Gray reassured the Council that the Cabinet would not become complacent and remained open to suggestions for further savings.  Ideas already received either had been implemented or were being evaluated and whilst challenging, work would continue towards the Council’s objectives despite the prevailing economic difficulties.

On moving the recommendation of the Cabinet, Councillor Gray indicated his appreciation for the support he had received from the Managing Director (Resources) and the Head of Financial Services and his Team.  The recommendation was duly seconded by Councillor J D Ablewhite.

In the debate that followed, Councillor M F Shellens asked whether the Cabinet had re-considered proposals to increase car parking charges given the importance of maintaining the vitality of town centres.  In response, Councillor Gray reminded Members that the review of car parking had been published for consultation and responses received would be taken into account in setting new charges.

In terms of the announcement from the Government regarding the council tax principles, Councillor P J Downes congratulated the Executive Leader for his contribution to this outcome but was hopeful that his lobbying of Andrew Stunnell MP also had helped towards this cause.  Referring to the service budgets in Annex A, and the savings which already had been made, Councillor Gray undertook to ensure, in future, that the text associated with each item better reflected how the savings had been achieved. 

Having been requested by Councillor I C Bates to identify all individual savings proposed and the criteria being used to prioritise savings, Councillor Gray undertook to respond to the questioner in writing after the meeting.  Following a question from Councillor P L E Bucknell regarding the level of revenue income anticipated from new industrial units, Councillor Gray reported that a review of the Council’s commercial estate was currently underway and that he would hope that this would result in the achievement of better returns in future years.

Having welcomed the information presented on homelessness, Councillor S Greenall indicated his support for comments made previously on car parking charges referring to the ability to park free of charge at the Trafford Centre in Manchester.  He added that he was fearful that increased charges might deter visitors to the town centres and contribute still further to the decline in revenue being suffered by the weekly markets.

In thanking the questioner for his support of the Council’s action on homelessness, Councillor Gray commented that markets generally were in decline because of changes to the nature of shopping and that this, together with the current climate, presented a challenge to all retailers to re-invent themselves.  The Council would continue to do all it could to invigorate town centres.

Referring to a suggestion that developer contributions would be received in respect of Paxton Pits Nature Reserve, the Executive Leader, Councillor J D Ablewhite assured the questioner, Councillor K J Churchill that there was no intention to locate housing development on either Hinchingbrooke Park or Paxton Pits but he added that the Council was required to fund Countryside Services and would continue to look for new and innovative ways to do this in future years but would, of course, involve local Members in any discussion of this nature.  Having expressed the view that local Members should be consulted in advance of any discussions, Councillor Gray advised the questioner that he could assure his Ward that there was no intention to build on Paxton Pits but there might be an occasion in the future when the Council would be required to consider proposals that may be equally un-palatable but which the Council may have no alternative but to support.

In response to comments expressed by Councillor P D Reeve regarding the potential negative impact on business rates should car parking charges be increased, Councillor Gray encouraged the questioner to submit to him alternative budget proposals on behalf of the UKIP Group.

As Executive Councillor for Planning and Housing Strategy, Councillor N J Guyatt assured the Council that consultation on proposed new car parking charges would continue and comments received taken into account before new charges were fixed. 

In closing the debate, the Executive Leader, Councillor J D Ablewhite thanked Baroness Hanham for responding to the representations made by the District Council but added that whilst the announcement had removed some pressure, there still were considerable savings to be achieved.  Councillor Ablewhite thanked the meeting for all the positive contributions received from Members during the debate and Councillor Gray and Officers for their efforts in preparation of the draft budget.  Whereupon, it was

RESOLVED

  that the draft budget and Medium Term Plan, appended to the report of the Head of Financial Services now submitted be approved as the basis for the development of the budget for 2013/14 and the revised Medium Term Plan for 2014/18.