Agenda item - Budget Update and Savings 2012/13

Report of the Director of Finance (copy to be circulated).

137.1    The Chair introduced the report and stated that he believed there had been an open and transparent process with community involvement in bringing forward the budget proposals that were before the Cabinet and which sought to maintain front-line services and protect people.

137.2    Councillor J. Kitcat stated that the budget proposals had been made public earlier than ever before and had been subject to wide consultation across the city.  The council faced a difficult situation in respect of the cuts being implemented by the Government and reductions in grant funding, however he believed that the proposals set out a fair and balanced budget that could be taken forward.  The proposed council tax increase of 3.5% was equal to an additional 57p a week for the average home, which was one of the lowest increases being proposed.  He was aware of the argument that the council tax freeze offered by the Government should be taken advantage of, however it would result in increased savings being required and a significant council tax increase in 2013.  He stated that the council was in a difficult position and had to be realistic, however should alternative proposals be pout forward which were viable then the administration was willing to take them on board and consider them.

137.3    Councillor A. Norman noted the final comment and stated that there were a number of cuts being proposed to service areas such as the Youth Offending Team and the Music Service which were a cause of concern.  She did not accept the position put forward by the Administration and argued that a council tax freeze could be utilised and used to benefit some of the services being affected.

137.4    Councillor Mitchell stated that she was concerned about the budget proposals and felt that they did not address the challenges faced by the authority or go far enough to ensure that the council would be a viable position in the future.  She noted that council’s were being warned that they would face another six years of austerity and therefore needed to take difficult decisions now.  She stated that the Labour & Co-operative Group was prepared to the work with the Leader of the Council and the Chief Executive to tackle the situation and approve an agreed budgetary framework.  There was a need to protect front-line services and she questioned lack of joined up thinking for the provision of services and queried how and when the intelligent commissioning process would come into effect.  She believed that it would be beneficial to freeze council tax and take the funding on offer from the Government.

137.5    Councillor G. Theobald stated that he believed the funding on offer from the government should be accepted and council tax frozen for 2012/13.  He did not accept the views of the Administration that it would require further savings and a higher increase in 2013.  He referred to the District Auditor’s report which stated that the council’s overall costs remained high compared to other authorities and suggested that these should be tackled as a priority.

137.6    Councillor Shanks stated that the funding to schools was being altered by the government and grants reduced which required a review of the level of support that the council could provide.  The music service would retain its direct government grant but was having to look at its fees and charges in order to help to meet the loss of funding from the council.  There would still be a music service and should alternative proposals be made then they could be considered.

137.7    Councillor J. Kitcat stated that there was still more work to do in terms of the capital budget and further changes were likely but he could not see how having a council tax freeze would benefit the residents of the city in the long-term.  There was a need to look at how the council worked and work was in hand to enable greater flexibility, partnership working and sharing of accommodation etc…

137.8    The Chair noted the comments and moved the recommendations.

137.9    RESOLVED:

(1)         That the updated forecasts for resources and expenditure for 2012/13 and 2013/14 be noted;

(2)         That the principles set out in appendix 1 to the report be agreed as a guide to the response made by officers to the consultation on technical reforms to council tax;

(3)         That the indicative allocations of one-off resources for 2012/3 se tout in table 1, subject to the identification of sufficient further one-off resources to fund the proposed allocations be agreed;

(4)         That the revised savings targets for 2012/13 and 2013/14 be noted and the budget strategies and detailed savings proposals as detailed in appendix 4 to the report be agreed;

(5)         That the update on the HRA budget set out in paragraph 3.55 to the report be noted;

(6)         That the summary Capital Investment Programme as set out in paragraphs 3.65 and 3.66 and appendix 5 to the report be noted; and

(7)         That the submission of a detailed programme to the February Cabinet meeting be noted.