In conjunction with the Report of the Cabinet (see Item 6 (a), the Executive Councillor for Resources to present a report by the Assistant Director, Finance and Resources on the process leading towards approval of the Budget/Medium Term Plan 2014/15 at the meeting of the Council in February 2014.
Minutes:
With reference to a report by the Assistant Director, Finance and Resources and in conjunction with the Report of the Cabinet (Minute No. 33a Item No.16 refers) the Executive Councillor for Resources, Councillor J A Gray guided the Council through the process which would lead towards approval of the budget/MTP 2014/15 at the meeting of the Council to be held in February 2014.
Councillor Gray advised Members that the current financial forecast was the most difficult ever presented to the Council. It comprised three components, actual expenditure or outturn in 2012/13, the latest forecast for 2013/14 and the impact of the latest Government announcements on the Medium Term Plan. Having drawn attention to the elements which had affected the latest forecast for the current year, including most notably, the reduction in business rate income, Councillor Gray thanked Members and Officers for both reduced expenditure in 2012/13, which allowed £1m to be placed in the Special Reserve and for identifying a list of savings that could achieve an annual saving rising to £2.1m. Mention also was made of the low inflation rate of 1%.
Councillor Gray drew the Council’s attention to three items which had emerged from the Governance Spending Review which would have a major impact on the District Council resulting in the need to achieve savings estimated at £2.8m by 2015/16 and £3.9m in 2018/19. These were Council Tax Limitation to 2%, a reduction in formula grant (RSG) and the proposal that Authorities should transfer £400m of new homes bonus to their Local Enterprise Partnership. In respect of the latter, Members were informed that the Council would continue to lobby the Government to vary their approach so that those Councils that had delivered on the Government’s growth strategy would continue to be able to retain a greater proportion of the bonus or that the entitlement to bonus be tapered rather than reduced by the total amount all at once.
Councillor Gray also referred to continued uncertainty in terms of the level of formula grant after the next General Election in 2015, the Council’s contribution to the A14 and when this would be required and the extent of savings that can be achieved by 2015/2016. Councillor Gray also described to the Council the reasons why the Cabinet had recommended the cessation of the award of grant or council tax support to Town and Parish Councils. Members also were alerted to the proposed involvement of the Overview and Scrutiny Panels in a process which would seek to challenge service standards and help identify further opportunities for efficiency savings. In closing, Councillor Gray invited Members of all parties to participate fully in this exercise.
In response to subsequent questions from Councillors R D Farrer, K J Churchill and M F Shellens, the Executive Councillor assured the questioners that work was ongoing to ensure both the Estates and One Leisure Service operated commercially, that the opportunity to draw a significant revenue stream from the Council’s estates was being explored, that increasing Council Tax as a way to generate additional funds was a high risk strategy in terms of the timescale available, the cost of the necessary referendum and the potential additional burden of re-billing should the referendum be lost and that the issue of the Council’s level of reserves had been fully debated by the Overview and Scrutiny Panel (Economic Well-Being).
In terms of the intention to cease grants to Town and Parish Councils, Councillor Gray assured Councillor Mrs L A Duffy that notice of this decision, if supported by the Council, would be sent to Town and Parish Councils as soon as possible after the meeting.
Whilst acknowledging the difficult and important challenge that lay ahead, Councillor R J West recognised that a robust process had been put in place to enable the Overview and Scrutiny Panels to participate in the “Facing the Future” exercise and he urged all Members to engage. Councillor S Greenall concurred with this comment and indicated his appreciation for the consideration being given to the items of savings suggested by the Liberal Democrat Group.
In commending the considered approach which was being taken towards identifying further savings, Councillor S M Van De Kerkhove asked whether the Executive Councillor was aware of approaches adopted by other authorities. In response, Councillor Gray replied that he only had anecdotal knowledge of some authorities and that it was difficult to compare organisations because of variations in size and character. However, he was aware of some who had spent inadvisably which had meant that they would have greater pressures to face than the District Council.
On the conclusion of discussion, it was moved by Councillor J A Gray, duly seconded and
RESOLVED
(a) that, having acknowledged the financial uncertainty for local authorities, the content of the report now submitted be noted;
(b) that, subject to there being no change in Government legislation, the payment of grant as council tax support to Town and Parish Councils in 2014/15 and subsequent years be discontinued;
(c) that the financial forecast be used as the basis for the estimation of the potential level of savings required by the authority; and
(d) that the Managing Director be requested to identify proposals for additional major savings in 2015/16.
[In accordance with Council Procedure Rule 14.5, Councillor P D Reeve requested that his decision not to support the Motion be recorded in the Minutes.]
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