Agenda item

To consider the Cabinet's recommendations on the Medium Term Plan for 2015 - 2019, the 2014/15 budget, related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 13th February 2014) 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 2014/15 for the various parts of Huntingdonshire District.  A report by the Assistant Director (Finance and Resources) is enclosed.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of debate on this item. 

Further to Minute No. 57 of the meeting of the Council held on 18th December 2013 and in conjunction with a report by the Assistant Director (Finance and Resources) (a copy of which is appended in the Minute Book) and Item Nos. 36 and 37 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the Medium Term Plan for the period 2014/15, the 2014/15 Budget, the Treasury Management Strategy and other associated matters for the Council's consideration and approval.

 

In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals for levels of Council Tax in 2014/15 for various parts of the Huntingdonshire district.

 

Before proceeding, Councillor K J Churchill moved, and it was duly seconded that, when appropriate, the recommendations contained in the report of the Assistant Director should be voted upon separately rather than taken together en bloc.  The Executive Leader contended that the Medium Term Plan and Budget should be supported in their entirety and not in a piecemeal way.  Upon being put to the vote, the Motion was declared to be LOST.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014 and advice received from the Department of Communities and Local Government, the Chairman moved and it was duly seconded and

 

RESOLVED

 

that a recorded vote be taken on the conclusion of the debate on this item.

 

The Executive Councillor opened his remarks by suggesting that the proposed Budget/Medium Term Plan demonstrated the significant progress made by the authority in a difficult year.  Councillor Gray expressed his appreciation to Messrs S Couper and C Mason for their assistance over this period.  Councillor Gray also took the opportunity to thank Mr Couper for all his hard work for the District Council and for helping to make a difficult subject easier to understand.  He concluded by wishing Mr Couper a long and happy retirement. 

 

Referring to the key elements of the proposed budget, Councillor Gray reminded Members of the position in which the Council had found itself in February 2013 and the significant changes that had taken place since then to vary the Council’s position.

 

Having taken into account the advice of the Overview & Scrutiny Panel (Economic Well-Being), the Cabinet had concurred with the recommendations not to raise Council Tax in the financial year 2014/15, to review capital spending by 2015/16 and to earn a margin on the interest on loans to other bodies referred to in the Treasury Management Strategy.  The Executive Councillor also was pleased to report that the Business Community had been consulted on the Council’s financial strategy and had been impressed that the Council had made savings without any significant impact on service levels.

 

Members’ attention was drawn to the anticipated improvement in the Council’s financial position at the end of 2018/19 as illustrated in Appendix B of the report which reflected –

 

¿  an increase of £1.5m in reserves;

¿  savings of £2.1m;

¿  0% or 2% increases in Council Tax over three years; and

¿  savings of £1.6 m in the current year and more to emerge from the ‘Facing the Future’ exercise.

 

Importantly the Council still was on course to achieve a balanced budget by 2017/18.

 

The Executive Councillor thanked the Liberal Democrat Group for the submission of additional budget proposals and advised the Council that although some required detailed investigation, they would be added to the ‘Facing the Future’ lists.  Of the proposals submitted, the District Council could not grant aid the Cromwell Museum nor was it appropriate to pursue an ‘invest to save fund’ arrangement. 

 

Having regard to the Treasury Management Strategy, the Executive Councillor reported that it continued to provide an appropriate balance between caution and interest costs.  The Council noted that the Treasury Management Advisory Group would continue to be consulted if there appeared to be any changes in economic circumstances and before using a new form of investment in Pooled Property Funds.  The Cabinet also would be requested to approve any loan to another public body.

 

With these assurances, Councillor Gray moved the recommendations of the Cabinet which were seconded by the Executive Leader, Councillor J D Ablewhite.

 

In response and on behalf of the Liberal Democrat Group, Councillor S Greenall thanked the Executive Councillor for his excellent presentation and concurred with his sentiments in respect of Mr S Couper.  He added that whilst there was support for the proposed budget from the Overview & Scrutiny Panel (Economic Well-Being) both he and Councillor M F Shellens had abstained from the vote at the meeting.  Irrespective of their views, however, the Panel had been afforded a greater insight of the budget which was welcomed.  Referring to the ‘Budget Process’ submissions from his Group, Councillor Greenall suggested that these had been prepared in response to criticism in previous years and he was pleased at the indication from the Executive Councillor that they would be taken into account going forward in the spirit of a ‘living budget’.  He commended the items which included – advertising, training, equipment and hired staff to the Cabinet to consider.

 

Similarly, Councillor K J Churchill as Leader of the UKIP Group congratulated both the Executive Councillor and Finance Officers for the presentation which had helped to make a difficult subject easier to understand.  He welcomed the recommendations in respect of the Council Tax Freeze Grant and whilst generally supportive of the proposed budget and MTP, there were elements of it that his Group found difficult to accept.  Councillor Churchill was of the view that elements of the pay review and ‘Facing the Future’ exercise should already be reflected in the MTP.

 

In response to this assertion, Councillor T V Rogers reminded the Council that ‘Facing the Future’ was also an ongoing process and that items could be added and changed over time. 

 

In further explanation, Councillor P D Reeve suggested that the UKIP Group did not feel able to support the MTP as it proposed an increase in Council Tax in 2016/17.

 

In discussion, Councillor P L E Bucknell drew the Council’s attention to Bid No 1085 regarding grants to town and parishes and alerted Members to the suggestion that it was the expectation of Government Ministers that these should be passed on to local Councils.

 

In indicating his support for the proposed budget and MTP, Councillor R Harrison expressed his disappointment at the level of engagement by the UKIP Group in the ‘Facing the Future’ and budget processes.  Councillor S M Van De Kerkhove expressed his concern at the Council’s over reliance, in his view, on the New Homes Bonus and was hopeful that those areas taking the largest share of development would be considered more favourably in terms of the allocation of community provision.  Councillor R J West underlined the ethos of conservatism - to create wealth before spending it and whilst desirable it would be negligent on the part of the Council to promise what it might not be able to deliver in the future.

 

As former Chairman of the Finance & General Purposes Committee, the Deputy Executive Leader, Councillor N J Guyatt thanked Mr S Couper for his advice to him over the years.  He considered it vital to establish a long term plan for the Council that was able to evolve and be flexible enough to change if necessary.  He reminded Members that the Council’s decisions were influenced by the need to address the shortage of new homes and the potential impact of capping should the Government choose to impose this.  Because of its reputation as an authority with the ability to deliver, the Council remained in a good position with the Government but this could change in the future.

 

Councillor R B Howe paid tribute to the professionalism of Mr S Couper adding that the Council would miss the capabilities of an Officer of his calibre.  Councillor Howe considered that it was inappropriate to discuss Council Tax together with the ‘Facing the Future’ process when it was marginal in terms of its impact on the Council’s overall finances.  In his view ‘Facing the Future’ was a comprehensive and effective review of the delivery of Council services which could revolutionise both the cost and way the Council currently operated.

 

Councillor M F Shellens moved and it was duly seconded by Councillor M G Baker –

 

‘That the following paragraph be inserted as new recommendation (b) in the recommendations set out in the report of the Assistant Director (Finance and Resources) –

 

(b)   that a review be undertaken of the additional risk of successful equal pay claims were the protection period for employees increased for those employees losing income as a result of the salary review, and in the event that this is not found to be significant, additional provision be made in the budget to increase the protection period for those staff affected up to a maximum extra cost of £720,000, the cost of which should be met from reserves or the special reserve.

 

with the substantive recommendations (b) to (e) to be reordered accordingly.’

 

After discussion and upon being put to the vote the Motion was declared to be LOST.

 

Councillor J D Ablewhite, Executive Leader thanked the Liberal Democrat Group for their ‘Budget Process’ suggestions but expressed disappointment that the UKIP Group had not contributed any budget proposals themselves or participated fully in the ‘Facing the Future’ exercise.  Having reminded Members what the Council had achieved over the past year, Councillor Ablewhite suggested that there was still much to do to ensure a balance between the protection of services for the most vulnerable and support for growth and innovation.

 

It having previously been moved and seconded, upon being put to the vote it was further

 

RESOLVED

 

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

 

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

 

(c)  that, subject to appropriate adjustments to Appendix A to reflect the Council Tax Freeze Grant being added to the Grant base (as outlined in Appendix B), the proposed budget and Medium Term Plan be approved;

 

(d)  that the 2014/15 Treasury Management Policy and Strategy (Appendix C) be approved;

	(e)   that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (Annex A) as approved by the Section 151 Officer on the 2nd December 2013 after consultation with the Chairman of Corporate Governance Panel (and publication as a key decision).
The tax base (T) which is the amount anticipated from a District Council Tax of £1 is   57,357

(f)  that the following amounts calculated by the Council for 2014/15 be approved in accordance with the requirements of the Local Government Finance Act 1992 as amended by the Localism Act 2011 (the Act), the Local Government Finance Act 2012 and associated regulations:-

(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			£83,001,772
(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.			£70,543,195
(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.			£12,458,577
(iv)  the Council Tax requirement for 2014/15 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)			£217.21
(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.			£4,819,772
(vi)  the Basic Amount of Council Tax for 2014/15 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 2014/15		£133.18
(vii) the basic amounts of Council Tax for 2014/15 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 of the meeting of the Council held on 26th February 2014.
	(viii)  the amounts to be taken into account for 2014/15 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 of the meeting of the Council held on 26th February 2014.

  (g)  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 of the meeting of the Council held on 26th February 2014 be noted.

 

  (h)  that, having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Act, sets the figures shown in Table 2 attached to the Agenda of the meeting of the Council held on 26th February 2014 as the amounts of Council Tax for 2014/15 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.

 

(i)  that the Council notes that, in accordance with Section 52ZB of the Local Government Finance Act 1992, the basic amount of its Council Tax for 2014/15 is not excessive.

  The basic amount at b(vi) above is not excessive as defined by the Government.

 

 

 

 

ANNEX A

 

TAXBASE  2014/15

 

  £ 

Abbotsley  245

Abbots Ripton  128

Alconbury  530

Alconbury Weston  274

Alwalton  114

Barham & Woolley  28

Bluntisham  720

Brampton  1,730

Brington & Molesworth  126

Broughton  88

Buckden  1,130

Buckworth  50

Bury  600

Bythorn & Keyston  135

Catworth  145

Chesterton  57

Colne  350

Conington  66

Covington  43

Denton & Caldecote  25

Diddington   25

Earith  561

Easton  75

Ellington  230

Elton  282

Farcet  515

Fenstanton  1,120

Folksworth & Washingley  344

Glatton  130

Godmanchester  2,315

Grafham  235

Great & Little Gidding  110

Great Gransden  445

Great Paxton  360

Great Staughton  318

Haddon  25

Hail Weston  240

Hamerton & Steeple Gidding  50

Hemingford Abbots  334

Hemingford Grey  1,255

Hilton  448

Holme  227

Holywell-cum-Needingworth  965

Houghton & Wyton  783

Huntingdon  6,875

Kimbolton & Stonely  580

Kings Ripton  82

Leighton Bromswold  78

Little Paxton  1,390

Morborne  10

Offord Cluny & Offord D’Arcy  490

Old Hurst  90

Old Weston  84

Perry  254

Pidley-cum-Fenton  145

Ramsey  2,655

St Ives  5,640

St Neots  10,295

Sawtry  1,655

Sibson-cum-Stibbington  210

Somersham  1,330

Southoe & Midloe  148

Spaldwick  234

Stilton  755

Stow Longa  63

The Stukeleys  390

Tilbrook  116

Toseland  38

Upton & Coppingford  83

Upwood & The Raveleys  405

Warboys  1,300

Waresley-cum-Tetworth  145

Water Newton  40

Winwick  40

Wistow  214

Woodhurst  149

Woodwalton  78

Wyton-on-the-Hill  390

Yaxley  2,785

Yelling  __145

   57,357

 

(In accordance with the Local Authorities (Standing Order) (England) (Amendment) Regulations 2014, the following Members voted for, against or abstained from the Motion –

 

For the Motion – Ablewhite, K M Baker, Banerjee, Bates, Boddington, Bucknell, Bull, Butler, Cawley, Chapman, Criswell, Davies, Dew, Fuller, Gray, Guyatt, Hansard, Harlock, Harrison, Harty, Howe ,Kadic, Longford, Mackender-Lawrence, Oliver, Pethard, Reynolds, Rogers, Sanderson, Tuplin, Tysoe, Ursell, West and Williams;

 

Against the Motion – None

 

Abstentions – M G Baker, Churchill, Curtis, Farrer, Giles, Greenall, Hyams, Morris, Reeve, Shellens and Van De Kerkhove.)