Agenda item

Councillor J A Gray, Executive Councillor for Resources to update the Council, by reference to a report by the Assistant Director, Finance and Resources on progress towards the Budget 2014/15 and the Medium Term Plan.  See also Item No 6 (a) Report of the Cabinet.

By reference to a report by the Assistant Director (Finance and Resources) (a copy of which is appended in the Minute Book) and the Report of the meeting of the Cabinet held on 12th December 2013, Councillor J A Gray, Executive Councillor for Resources updated the Council on preparation of the draft budget 2014/15 and Medium Term Plan 2015/19. 

The Executive Councillor prefaced his statement by stating that he would normally be in a position to discuss, with more certainty, the Council’s draft budget for the new financial year.  That he was not able to do so was due to the impact of the Government’s Autumn Statement, presented on 5th December, which had varied significantly the level of savings required to be made by the Council by 2018/19.  Although better news for local authorities, the Executive Councillor advised that the Council now would be required to achieve savings of £3.6m by 2018/19 which still was a considerable challenge.

Notwithstanding, the Executive Councillor urged the Council to treat the Chancellors’ announcements with caution given the likelihood of further reductions in local government funding and the uncertainty around business rate relief and rules relating to Council Tax increases.

In this climate, the Executive Councillor was of the view that the Council had no alternative but to continue with the ‘Facing the Future’ exercise which he hoped, on its conclusion, would identify ways of achieving further savings to meet current and future spending pressures.  The outcome of the Pay Review, expected in January 2014 would also clarify other costs.

Referring to a question raised by the Overview & Scrutiny Panel (Economic Well Being) in respect of contingency provision made within the MTP for redevelopment of RAF Wyton, the Executive Councillor confirmed that this Scheme was required to commence in 2014/15.

In conclusion, the Executive Councillor thanked the Chairmen and Members of the Overview & Scrutiny Panels for their contribution to this exercise and the Democratic Services Team for their support. 

A period of questions to the Executive Councillor followed.  In response to a question from Councillor S M Van De Kerkhove regarding the pay review, Councillor Gray remarked that he was unable to advise how individual staff would be placed contractually if the outcome of the review was unfavourable and that it was inappropriate, in any event to predict the results which would emerge during January.  In terms of the targeted revenue savings referred to in the Annex to the Report of the Cabinet, Councillor Gray suggested that these may/may not exceed expectations but were a starting point in identifying the overall savings required in the period.

On behalf of the Liberal Democrat Group, Councillor M F Shellens indicated his support for the approach and recommendations of the Cabinet as the basis for developing the final budget although he drew attention to unknown items such as the pay review that might significantly impact on the final outcome.  Although concurring with Councillor Shellens that nationally the government deficit was improving, Councillor Gray was not confident that this improvement would extend to local government and was anxious that the Council should not find itself in a position where it relied on the New Homes Bonus.  He hoped to achieve a balance whereby reliance by the Council on the NHB would reduce at the same time as the financial health of the organisation improved.  Higher levels of reserves would also mitigate any reduction in NHB.

In response to questions from Councillor D A Giles, the Executive Councillor reaffirmed that it was not currently the Council’s intention to raise car parking charges and that the potential to charge for the green bin collection could ultimately be one of the options considered by the Council on the conclusion of the ‘Facing the Future’ exercise.  On the same theme, Councillor P D Reeve was of the view that whilst the Council had examined the potential for savings, it had not yet addressed the opportunity to generate revenue streams such as advertising on the website and vehicles/assets which have a public face and investing in hotels for those in need of bed and breakfast accommodation.  In reply, the Executive Councillor reminded the questioner that the Overview & Scrutiny Panel (Economic Well Being) had considered the potential for income generation on a number of occasions and that this had subsequently been included in targeted savings (Bid No 1081).  Regarding the next steps for the ‘Facing the Future’ exercise and in response to a question from Councillor M G Baker, the Executive Councillor advised that the suggested priority lists would be considered in the first instance by the Chairmen and Vice Chairmen of the Overview & Scrutiny Panels and categorised into those items which can be achieved quickly and simply, those that required further research and investigation and others which potentially could be politically sensitive and needed to be considered by the Cabinet informally before recommendations could be made to the Council.  Having accepted Councillor Mrs M Banerjees’ praise for the exercise, Councillor Gray admitted that it had also served to highlight areas of the Council’s business which could be operated commercially to create an income. 

Regarding the new multi storey car park in Huntingdon and in response to a question from Councillor R S Farrer, Councillor Gray reaffirmed the Council’s intention, in partnership with local businesses, to deliver a town centre where residents and visitors wished to spend their time.  In support, the Executive Leader advised the Council that footfall in the District’s towns had increased and that it was important to continue to work with private investors to create the right environment in the towns to encourage further visitors.  He further contended that the Council would not have been able to attract private investment if the future success of the town centres was in any doubt.

Referring at this stage in the meeting to Item No 34 of the Report of the meeting of the Cabinet held on 12th December 2013 in relation to the Treasury Management Review of Performance, Councillor Gray thanked the Accountancy Manager and his team for their contribution to the performance of the Fund Managers and Councillor M F Shellens indicated his support for the level and direction of the activity undertaken in the first half of the year.

Whereupon, it was

RESOLVED

(a)  that the draft Budget and Medium Term Plan, appended to the report of the Assistant Director, Finance and Resources be approved as the basis for the redevelopment of the budget for 2014/15 and the revised Medium Term Plan 2015/2019; and 

(b)  that the content of the report of the Assistant Director (Finance & Resources) on the outcome of the six months review of the performance of Treasury Management be noted.