Agenda item

To consider a report by the Head of Resources prior to its consideration by Cabinet.

(Executive Councillors J D Ablewhite, J A Gray and R B Howe were in attendance for the discussion on this item).

With the assistance of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Panel considered the Council’s proposed Budget, Medium Term Financial Strategy (MTFS) 2016/17 to 2019/20 and Council Tax level for 2015/16. Having had their attention drawn to the changes made since the last meeting, Members supported the decision to “front load” ZBB heavy savings to be achieved in the forthcoming year by making further savings amounting to £653K in 2015/16.  These savings largely represented real terms reductions in spending without sacrificing services.  It was acknowledged that there was still more to do but the Executive Councillor for Resources was confident that, regardless of the outcome of the election, the Council would be in a strong financial position next year. Overall, approximately £2.5m had been taken out of the budget to date.

The Panel established a working group comprising Councillors I D Gardener, T Hayward, P D Reeve and M F Shellens to look into a selection of lines in the budget to examine how they had been constructed and to report back.

Following a question about the interest rate predictions, it was confirmed that the figures were based on information received from the Council’s advisors. The Panel then proceeded to ask Councillor T D Sanderson, Executive Councillor for Strategic Economic Development and Legal, questions about the work he had undertaken on the budgets of the services for which he was responsible. Councillor Sanderson reported that some of the services had been through Zero Based Budgeting and he was endeavouring to generate more income. The shared service for Legal was progressing. Reference also was made to the approach that would be taken to respond to the closure of local air bases.

At the conclusion of its deliberations the Panel:

a)  supported the general intention not to use reserves.  Given future uncertainty, it was recommended that the position should be reviewed next year but that reserves should not fall below £3m.  Their use should be justified by the value they achieved for the Council;

b)  recommendedthat the work to be undertaken over the coming year to define service levels and standards was subject to an assessment of the impact of any changes on the public.

c)  expressed support for the additional savings, which were being made at the right pace and with due regard to the impact on services;

d)  supported the Council Tax freeze for 2015/16;

e)  supported to intention to freeze Council Tax for the life of the Medium Term Financial Strategy (Councillor M F Shellens did not support this recommendation);

f)  endorsed the Capital Programme but registered concerns about the capital project appraisal, which Members would look at in due course, and

g)  endorsed the Fees and Charges schedule.

RESOLVED

  that the Cabinet be informed of the Panel’s views on the report by the Head of Resources