Agenda item - Budget Update and Savings 2015/16

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

That the Committee: –

(1)          Notes the updated forecasts for resources and expenditure for 2015/16 and an estimated budget savings requirement for 2015/16 based on a range of council tax propositions.

(2)          Notes the approach taken to identifying savings in the context of the council’s draft Corporate Plan and Medium Term Financial Strategy.

(3)          Notes the detailed proposals for savings in 2015/16 based on a council tax increase of 5.9%, which would trigger a referendum in accordance with Chapter IVZA of the Local Government Finance Act 1992 and associated regulations (“the Referendum Budget”).

(4)          Notes options for further savings that could form part of the “Substitute Budget” that would be required in addition to the proposals at 2.3 or alternatively to support a budget based on a threshold rise in the council tax (the “Threshold Budget”) or a council tax freeze (the “Freeze Budget”).

(5)          Directs that all of the savings proposals be subject to further consultation, engagement and scrutiny alongside the draft Corporate Plan and Medium Term Financial Strategy.

(6)          Notes the indicative allocations of one-off resources for 2015/16 set out in table 1 subject to the identification of sufficient further one-off resources to fund the proposed allocations.

(7)          Notes the update on the HRA budget set out in paragraphs 3.31 to 3.34.

(8)          Notes the Capital Investment Programme update set out in paragraphs 3.35 to 3.36.

90.1       The Committee considered a report of the Executive Director for Finance & Resources in relation to the Budget Update and Savings 2015/16. The report set out the draft budget proposals for 2015/16; the proposals were made in the context of a very challenging financial position with an estimated £102m savings required by 2019/20. The proposals were a balanced package of efficiency measures and Value for Money improvements, including income generation, as well as service redesign, re-commissioning and de-commissioning decisions. As the Committee had been unable to agree the recommended Council Tax level in July, for planning purposes, the report set out all options ranging from a Council Tax freeze to a rise that would trigger a referendum.

90.2       Councillor Sykes thanked Officers for the huge amount of work that had been undertaken, and added that most other local authorities were in a similar situation. Local government had been forced to take on a disproportionate amount of the cuts imposed by Central Government. The scope for further efficiency savings was questioned, and the proposed 5.9% Council Tax increase would give some protection for services. Councillor Sykes made reference to a consultation in which 60% of those that responded favoured a Council Tax rise were it was justified. It was also clarified that there were still further proposals to come forward.

90.3       Councillor G. Theobald stated that the difficult choices outlined in the report were the result of the Administration being unwilling to take difficult decisions. Other Local Authorities nationally had been changing how they provided services; creating greater value for money and looking at more shared services. He was of the view that these options had not been seriously explored by the Administration as they were ideologically committed to state-run services. Greater levels of savings were required than those outlined in the report, and these could only be delivered through strong political leadership. Councillor G. Theobald concluded that it would be the position of the Conservative Group to abstain from the vote.

90.4       Councillor Morgan stated that Local Government was facing 40% cuts – far higher than other areas of the public sector, and he noted that other Conservative controlled authorities had been openly critical of the position of Central Government, and he noted that the Labour Group had called for reviews of services over the last few years. The position of the Group would be to support a threshold increase in Council Tax, and they did not support the holding of a referendum with the associated costs that it would involve. The Group would be reserving its position until the full budget was published in 2015.

90.5       Councillor Shanks noted that this was not the position the Administration wished to be in, but the national direction of travel was unlikely to change regardless of the outcome of the 2015 General Election. The proposed 5.9% increase would not be a full solution, but would serve to protect some services.

90.6       Councillor A. Norman noted that some central services were being asked to make much smaller levels of savings, and made example of the Communications Service whilst noting that the Able & Willing Service was being asked to save a much greater amount. In response the Chair clarified that the Able and Willing Service was working towards financial independence from the authority – as previously agreed, and the Communications Service was being protected to ensure that the authority could change the relationship with residents and service users which was currently challenging. He also added that there were currently 70 shared service projects, and drew example of recent decisions made by the Committee, and noted the challenge the Administration had faced when they took office.

90.7       The Chair then put the recommendations to the vote.

90.8       RESOLVED: That the Committee:

(1)       Notes the updated forecasts for resources and expenditure for 2015/16 and an estimated budget savings requirement for 2015/16 based on a range of council tax propositions.

(2)       Notes the approach taken to identifying savings in the context of the council’s draft Corporate Plan and Medium Term Financial Strategy.

(3)       Notes the detailed proposals for savings in 2015/16 based on a council tax increase of 5.9%, which would trigger a referendum in accordance with Chapter IVZA of the Local Government Finance Act 1992 and associated regulations (“the Referendum Budget”).

(4)       Notes options for further savings that could form part of the “Substitute Budget” that would be required in addition to the proposals at 2.3 or alternatively to support a budget based on a threshold rise in the council tax (the “Threshold Budget”) or a council tax freeze (the “Freeze Budget”).

(5)       Directs that all of the savings proposals be subject to further consultation, engagement and scrutiny alongside the draft Corporate Plan and Medium Term Financial Strategy.

(6)       Notes the indicative allocations of one-off resources for 2015/16 set out in table 1 subject to the identification of sufficient further one-off resources to fund the proposed allocations.

(7)       Notes the update on the HRA budget set out in paragraphs 3.31  to 3.34.

(8)       Notes the Capital Investment Programme update set out in paragraphs 3.35 to 3.36.