Agenda item

To consider a report by the Assistant Director, Finance and Resources on the 2014/15 Budget and Medium Term Plan.

(A copy of the separate appendix of budget tables has been circulated separately to Cabinet Members and is also available at www.huntingdonshire.gov.uk)

Recommended to Council that, subject to the amendments shown in the Budget Update note and any detailed consequential amendments to the Tables, the proposed Budget and Medium Term Plan appended to the report be approved; that the breach in the 15% limit on Net Interest and Borrowing Costs be noted and the actions outlined in paragraph 8.6c of the report, to mitigate the impact, be endorsed; and that that there be no increase in Council Tax for 2014/15, i.e. Band D charge will remain at £133.18.

Subject to approval of the Budget by Council, it was also agreed that the additional approvals required for those MTP schemes highlighted in Table 4 be approved.

(Councillors S Criswell, Chairman of the Overview and Scrutiny Panel (Social Well-Being) and T V Rogers, Chairman of the Overview and Scrutiny Panel (Economic Well-Being,) were in attendance and spoke on this item).

Further to Minute No.13/55 and by way of a report by the Assistant Director, Finance and Resources (a copy of which is appended in the Minute Book) the Cabinet were acquainted with a number of variations to the assumptions made previously for the purpose of preparing the Medium Term Plan, the budget and associated level of Council Tax for 2014/15. Updated versions of Tables 1 to 6 were also circulated these had been expanded to provide a breakdown of the figures relating to salaries, government grants and fees & charges.

Attention was also drawn to a Budget Update note which summarised the impact of the Government’s recent announcement that the Council Tax Freeze Grant would now be built into the base rather than just being awarded for 2 years.

In discussing the contents of the report, Members’ attention was drawn to the conclusions reached by the Overview and Scrutiny Panel (Economic Well-Being).  In that respect, Members concurred with the Panel that the Authority  should freeze its level of Council Tax for the forthcoming year and accept the Government’s Council Tax Freeze Grant.

With regard to the use of revenue reserves, Executive Councillors have been advised that a balance had been taken between progress on saving and the use of reserves in order to ensure that savings were properly targeted and effectively delivered to manage service impact. It was reported that net interest and borrowing costs would increase to 16.4% in 2018/19.  In that respect, the Cabinet considered the options available to them to keep within the limit of 15% set by Council.  Given the current financial circumstances, the potential for capital savings through the Facing the Future exercise and the beneficial impact of future margins on loans to other bodies, the Cabinet concurred with the Panel that they would recommend that the 16.4% position should be accepted. It was noted that the Cabinet intends to closely monitor capital spending and that the Treasury Management Group would take a close interest in this, as well as any investment schemes, because of their impact on borrowing and investments.

Discussion also ensued on proposals put forward by the Liberal Democrat Group, in respect of which the Cabinet noted that the future of the Cromwell Museum was already being considered by Huntingdon Town Council and that the issues associated with the pay review are being considered elsewhere.  Members concluded that it would be appropriate to consider all the other issues as part of the Facing the Future exercise.

In response to a question by the Cabinet on the need to ensure very effective budget monitoring, especially on savings items, the Managing Director confirmed that this was a very high priority.

Having noted the comments arising from the consultation with the business community on expenditure proposals and in acknowledging the contributions of the Overview and Scrutiny Panel, the Cabinet

RECOMMENDED

(a)  that, subject to the amendments shown in the Budget Update note and any detailed consequential amendments to the Tables, the proposed Budget and Medium Term Plan appended to the report now submitted be approved;

(b)  that the breach in the 15% limit on Net Interest and Borrowing Costs be noted and the actions outlined in paragraph 8.6c of the report now submitted, to mitigate the impact, be endorsed; and

(c)  that that there be no increase in Council Tax for 2014/15, i.e. Band D charge will remain at £133.18.

It was also RESOLVED

that, subject to approval of the Budget by Council, the additional approvals required for those MTP schemes highlighted in Table 4 be approved.