Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2014/125

Contact: Stephanie Skivington, Corporate Finance Manager, Tel: (01865) 323995

Report by Chief Finance Officer (CA7).

This report is the final report to Cabinet in the series on the Service & Resource Planning process for 2015/16 to 2017/18, providing councillors with information on budget issues for 2015/16 and the medium term.  It sets out the proposed 2015/16 budget; the updated Corporate Plan; the draft 2015/16 – 2017/18 Medium Term Financial Plan (MTFP) and the updated Capital Programme 2014/15 – 2018/19.

The Cabinet is RECOMMENDED to approve:

(1)          a £0.500m project development budget for the Didcot Northern Perimeter Phase 3 Scheme;

(2)          a budget increase of £0.364m for the Frideswide Square Transport and Public Realm scheme and to proceed to construction of the works on the main square.

The Cabinet is RECOMMENDED to RECOMMEND Council to approve:

(a)          the Corporate Plan, Directorate Business Strategies and Performance Indicators;

(b)          in respect of revenue:

(1)          a budget for 2015/16 and a medium term plan to 2017/18, based on the proposals set out in the December 2014 report to Cabinet and the variations in Section 3.2;

(2)          a council tax requirement (precept) for 2015/16;

(3)          a council tax for band D equivalent properties;

(4)          virement arrangements to operate within the approved budget;

(5)          the virement of £2.8m from corporate contingency to children’s social care included in section 3.4;

(c)          in respect of treasury management:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy;

(2)          to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

(3)          that any further changes required to the 2015/16 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)          the Prudential Indicators as set out in Appendix A of Section 3.5;

(5)          Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 3.5;

(6)          The Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 3.5;

(7)          The Treasury Management Policy Statement as set out in Appendix E of Section 3.5;

(d)          approve a Capital Programme for 2014/15 to 2018/19 including the Highways Structural Maintenance Programme 2015/16 and 2016/17;

(e)          to delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget.

Cabinet considered the final report in the series on the Service & Resource Planning process for 2015/16 to 2017/18, providing councillors with information on budget issues for 2015/16 and the medium term.  It set out the proposed 2015/16 budget; the updated Corporate Plan; the draft 2015/16 – 2017/18 Medium Term Financial Plan (MTFP) and the updated Capital Programme 2014/15 – 2018/19.

Councillor Hards, Shadow Cabinet Member for Finance, highlighted the difficulty of the task ahead, referring to the huge increases in costs for Adult Social Care and Children, Education & Families and the resultant pressures on the budget. He expressed relief that there was the option to raise Council Tax by 1.9% before a referendum was required. The pressures would cause difficulty for any organisation but he felt that it was particularly difficult for the Council given the impact on resilience caused by responding to the on-going difficult financial position. He raised a number of queries around the detail of the report relating to the Better Care Fund figures, the Care Act funding and questions on the business rate and RSG.

Councillor Stratford responded to the queries raised indicating that the Better Care Funding was expected but was not available yet; the Revenue Support Grant he was confident would be available when needed despite the new payment arrangements and further thought would need to be given to the implications of the Care Act. Councillor Heathcoat, Cabinet Member for Adult Social Care added that there would need to be some flexibility within adult social care but welcomed that the Health & Wellbeing Board had agreed the £8m Better Care Fund. She thanked the Chief Executive and John Jackson for their efforts to make this happen. She recognised that the budget decisions would be difficult but referred to actions being taken to ensure that the Directorate would manage. The implications of the Care Act were an unknown at this stage.

Councillor Price, Shadow Cabinet Member for Adult Social Care, stated that she had heard it said at many meetings that the Council had had to pull back to their statutory role and expressed concern for the future given the volatility of demand and the uncertainty around the Care Act. There was a need to address problems around the  learning disability budget and to ensure that in social care we were doing more than just reacting to cuts. Councillor Heathcoat in response stated that they were indeed doing more than reacting to cuts and were looking at integrating provision, supported by truly pooled budgets.  

Councillor Mathew referred to the decision taken at Council not to provide paper copies to councillors except where they were members of a committee and asked that this decision be reversed. He acknowledged the need to balance the books but felt that this decision was short sighted as it was not possible to read more than a few pages on a computer. Cabinet in particular would lose the benefit of the advice of well informed councillors. It affected the ability of councillors to do their job.

Councillor Stratford introduced the contents of the report, thanking Lorna Baxter, Chief Finance Officer and her Team for all their efforts. The budget was a challenging one and their help and assistance to him had been invaluable. He referred to the abilty to raise Council Tax by 1.9% and in welcoming that it would give a little headroom noted that the Council would need to look at replenishing reserves.

During discussion Cabinet Members highlighted aspects of the budget in their own areas of responsibility.

RESOLVED:            

to approve:

(1)          a £0.500m project development budget for the Didcot Northern Perimeter Phase 3 Scheme;

(2)          a budget increase of £0.364m for the Frideswide Square Transport and Public Realm scheme and to proceed to construction of the works on the main square.

to RECOMMEND Council to approve:

(a)          the Corporate Plan, Directorate Business Strategies and Performance Indicators;

(b)          in respect of revenue:

(1)          a budget for 2015/16 and a medium term plan to 2017/18, based on the proposals set out in the December 2014 report to Cabinet and the variations in Section 3.2;

(2)          a council tax requirement (precept) for 2015/16;

(3)          a council tax for band D equivalent properties;

(4)          virement arrangements to operate within the approved budget;

(5)          the virement of £2.8m from corporate contingency to children’s social care included in section 3.4;

(c)          in respect of treasury management:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy;

(2)          to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

(3)          that any further changes required to the 2015/16 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)          the Prudential Indicators as set out in Appendix A of Section 3.5;

(5)          Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 3.5;

(6)          The Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 3.5;

(7)          The Treasury Management Policy Statement as set out in Appendix E of Section 3.5;

(d)          approve a Capital Programme for 2014/15 to 2018/19 including the Highways Structural Maintenance Programme 2015/16 and 2016/17;

(e)       to delegate authority to the Leader of the Council, following consultation with the Chief Finance Officer, to make appropriate changes to the proposed budget.