Issue - items at meetings - Budget Update and Budget Process 2014/15

Report of the Executive Director for Finance & Resources (copy to follow).

(1)               That the resource and expenditure projections for 2014/15 set out in the body of the report and appendix 1, and the Medium Term Financial Strategy (MTFS) projections set out in appendix 2 be noted;

(2)               That the Executive Leadership Team be instructed to develop budget proposals for 2014/15, for submission to Policy & Resources Committee for consideration, on the basis of:

·         a 2% council tax increase;

·         the purpose, ambition and priorities set out in the corporate plan and principles set out in paragraph 3.44 of the report;

·         the consultation and engagement approach set out in paragraph 4 of the report.

(3)               That the Executive Leadership Team be instructed to identify options to meet the 2014/15 savings target of £23.6m and expand the proposals currently contained in the MTFS to provide more detail over the subsequent 4 year period; and to report such options and proposals to Policy & Resources Committee for consideration.

(4)               That the proposed approach to reviewing the Council Tax Reduction Scheme as set out in paragraphs 3.24 to 3.26 of the report be agreed; and

(5)               That the resource projections for the capital investment programme as shown in appendix 3 to the report be noted.

31.1         The Executive Director for Finance & Resources introduced the report which set out the financial context the Council was working in, following major national changes to local government finance which had been introduced from the 1^st April 2013.  She noted that further information was anticipated from the government but in the meantime officers were working on the premise of a 2% council tax increase for 2014/15.  It was also intended to bring together the Corporate Planning and Financial Planning processes to enable a more co-ordinated approach to the budget process.  It was intended to bring a report to the December committee meeting on the outline proposals and a final report to the February meetings of the committee and full council.

31.2         Councillor Littman welcomed the report and the proposed process for consultation and involvement in the budget setting process.  He noted that it was going to be a challenging process and that difficult decisions would have to be taken.

31.3         Councillor A. Norman stated that she wished to thank the officers for the report and noted that a 2% council tax rise was being considered rather than maintaining a council tax freeze and utilising government support.  She also noted that it was intended to improve the scrutiny review aspects for the budget setting process.

31.4         Councillor Morgan expressed concern over the scale of financial savings anticipated at paragraph 3.41 and stated that there was a need to maintain services provided by democratically elected bodies and not privatised organisations.

31.5         The Chair stated that the council faced a huge challenge in terms of its future finances and savings that would have to be found and urged all Members to support the LGA campaign for the future of local government.  He then put the recommendations to the vote.

31.6         RESOLVED:

(1)         That the resource and expenditure projections for 2014/15 set out in the body of the report and appendix 1, and the Medium Term Financial Strategy (MTFS) projections set out in appendix 2 be noted;

(2)         That the Executive Leadership Team be instructed to develop budget proposals for 2014/15, for submission to Policy & Resources Committee for consideration, on the basis of:

·               a 2% council tax increase;

·               the purpose, ambition and priorities set out in the corporate plan and principles set out in paragraph 3.44 of the report;

·               the consultation and engagement approach set out in paragraph 4 of the report.

(3)         That the Executive Leadership Team be instructed to identify options to meet the 2014/15 savings target of £23.6m and expand the proposals currently contained in the MTFS to provide more detail over the subsequent 4 year period; and to report such options and proposals to Policy & Resources Committee for consideration.

(4)         That the proposed approach to reviewing the Council Tax Reduction Scheme as set out in paragraphs 3.24 to 3.26 of the report be agreed; and

(5)         That the resource projections for the capital investment programme as shown in appendix 3 to the report be noted.

Note:  Councillors G. Theobald, A. Norman and K. Norman wished their names recorded as having voted against the above resolutions.