Agenda item

Service & Resource Planning Report for 2011/12 - 2015/16 (January 2011)

Cabinet Member: Finance & Property

Forward Plan Ref: 2010/151

Contact: Lorna Baxter, Assistant Head of Finance (Corporate Finance) Tel: (01865) 323971

Report of the Cabinet Member for Finance & Property (CA8A)

Report by Assistant Chief Executive & Chief Finance Officer (CA8B).

This report is the final report to Cabinet in the series on the Business Strategy and Service & Resource Planning process for 2011/12 to 2015/16, providing councillors with information on budget issues for 2011/12 and the medium term. If any information is outstanding at the time of the Cabinet meeting, it will be reported to Council when it considers the budget on 15 February 2011.

The report sets out the latest information on the Council’s financial position, includes the Treasury Management Strategy for 2011/12 and considers the capital funding, including an updated Capital Programme.

The Cabinet Member for Finance & Property has prepared a separate report, circulated alongside this report, which sets out the basis for the Cabinet’s proposals to Council for the 2011/12 budget and Medium Term Financial Plan (MTFP) to 2015/16. This takes into consideration comments on the draft budget proposals from the individual Scrutiny Committees in December 2010 as well as the latest information on the Council’s financial position as outlined in this report. It also takes account of the public consultation on the budget which was undertaken in both August 2010 through Oxfordshire Voice and a further consultation during December, the outcomes of which are set out in an annex to that report.

The Cabinet is RECOMMENDED to:

a. (in respect of revenue) RECOMMEND Council to approve:

(1) a budget for 2011/12 and a medium term plan to 2015/16, based on the proposals set out by the Leader and Cabinet Member for Finance;

(2) a budget requirement for 2011/12;

(3) a precept for 2011/12;

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

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

b. (in respect of treasury management) RECOMMEND Council to approve:

(1) the Treasury Management Strategy Statement ;

(2) Prudential Indicators from April 2011;

(3) that in relation to the 2011/12 strategy any further changes required be delegated to the Chief Finance Officer in consultation with the Leader and Cabinet Member for Finance.

c. RECOMMEND Council to approve the Minimum Revenue Provision Methodology Statement as set out in paragraphs 10 to 13 of Annex 7.

d. (in respect of capital) RECOMMEND Council to approve:

(1) the updated Capital Strategy, Corporate Asset Management Plan and Transport Asset Management Plan;

(2) a Capital Programme for 2010/11 to 2015/16;

(3) Prudential Indicators from April 2011.

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.

Minutes:

The report by the Assistant Chief Executive & Chief Finance Officer (CA8B) was the final report to Cabinet in the series on the Business Strategy and Service & Resource Planning process for 2011/12 to 2015/16, providing councillors with information on budget issues for 2011/12 and the medium term. Any outstanding information at the time of the Cabinet meeting, would be reported to Council when it considered the budget on 15 February 2011.

The report sets out the latest information on the Council’s financial position, includes the Treasury Management Strategy for 2011/12 and considered the capital funding, including an updated Capital Programme.

The Cabinet Member for Finance & Property had prepared a separate report which, circulated alongside this report (CA8A), which set out the basis for the Cabinet’s proposals to Council for the 2011/12 budget and Medium Term Financial Plan (MTFP) to 2015/16. This took into consideration comments on the draft budget proposals from the individual Scrutiny Committees in December 2010 as well as the latest information on the Council’s financial position as outlined in this report. It also took account of the public consultation on the budget which had been undertaken in both August 2010 through Oxfordshire Voice and a further consultation during December, the outcomes of which were set out in an annex to that report.

Prior to consideration of the reports the Cabinet were addressed by the following members of the public and councillors:

Sarah Lazenby

Made a statement on behalf of ‘Oxford Save our Services’ group asking members of the Council’s Conservative Group to change direction and preserve the institutions and services that had been built up over many years’, stressing the anxiety expressed to the group by users of various services. Amongst those expressing their concern had been young people worried about the possible closure of their youth centres, fearing their friends would turn back to drugs and crime; young carers who may not have the support of the Young Carers Centre; and for the services in place for those suffering from mental illness.

In response Councillor Jim Couchman stated that the County Council was to lose 28% of its government grant over the next 4 years. He asked which services did Sarah Lazenby suggest the Council should take the money from? Sarah Lazenby suggested that the Cabinet approach central government pointing out that ‘deep and very speedy cuts could push the country into a double-dip recession as the IMF had already warned they may.’

Neil Clark

As a representative of the ‘Save Botley Library’ campaign, Neil Clark, urged the Cabinet not to withdraw funding from the libraries pointing out that this was very ‘disproportionate, given that libraries only represented 1% of Oxfordshire County Council’s total budget’. He added his concerns about problems which could arise should local volunteers take over the running of some libraries, such as the safeguarding of private information, safeguarding of strict standards as currently practiced by trained professionals, travel inconveniences for the elderly, the disabled and young parents. He urged the Cabinet to ‘do what they were elected to do’ and fulfil the requirements of the Public Libraries & Museums Act 1964 which is to ‘run a comprehensive and efficient library service’ in Oxfordshire.

Councillor Jim Couchman asked Neil Clark which alternative services he would suggest that the Council should take the money from, given the 28% reduction in government grant funding. Neil Clark responded that the proposed cuts to the libraries were disproportionate to the other savings proposals.

Emma Jones

Called on the Leader of the Council, as a person ‘in a position of power and influence to ‘lobby the government on behalf of the vulnerable of Oxfordshire and to engage positively with campaigners on their behalf.’

Councillor Mohammed Altaf Khan

Councillor Altaf Khan, speaking as local member for the Headington/Marston division, whose library was under threat of closure, urged the Cabinet to ensure that consultation with the local residents takes place prior to the budget being set at Council on 15 February, adding that transport issues to an alternative library were of great concern to residents. He asked the Cabinet Member for Safer & Stronger Communities to take into consideration that the literary rate was low in his area and one of the schools was in special measures.

Councillor Zoe Patrick

Referred to the Capital Strategy (Draft) 2011/12 - 2021/22 (page 360, Annex 12) pointing out the typing error indicating that there was no new secondary school development for the Vale of White Horse area within the Growth Portfolio.

Councillor Alan Armitage

Expressed concern at ‘the lack of consultation’ on the proposed cuts and hoped the Cabinet would respond to the public at large. He added that he hoped there would be some flexibility to respond to the Equality Impact Assessments in relation to those services which were most at threat, as the people who suffered most were those living in rural areas. He also pointed out that the Liberal Democrat Group did not believe that the cuts needed to be actioned as rapidly as proposed.

The Assistant Chief Executive and Finance Officer introduced report CA8B pointing out that the Council was still awaiting the final settlement figure from the Government and advising the Cabinet therefore not to make a decision with regard to the Collection Fund settlement until this was known. Councillor Jim Couchman echoed this advice at the same time as congratulating Sue Scane and her team, together with the Directorates, for all their hard work and efficiency in producing balanced budgets and for constructing a complete Medium Term Financial Plan.

During the full discussion which followed, Councillor Mrs J. Heathcoat highlighted the fact that the proposals relating to the Libraries were proposals and not decisions and that the consultation period had not taken place as yet. She went on to describe the proposals for alternative services and the opportunities for communities to look into whether there would be scope for a community run library.

The Cabinet RESOLVED to: