Agenda item

Cabinet Member: Finance & Property

Forward Plan Ref: 2011/154

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 2012/13 to 2016/17, providing councillors with information on budget issues for 2012/13 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 7 February 2012.

The report sets out the latest information on the Council’s financial position, includes the Treasury Management Strategy for 2012/13 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 2012/13 budget and Medium Term Financial Plan (MTFP) to 2016/17. 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, 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 2012/13 and a medium term plan to 2016/17, based on the proposals set out by the Leader and Cabinet Member for Finance;

(2)                     a council tax requirement (precept) for 2012/13;

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

(4)                     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 2012;

(3)                     that in relation to the 2012/13 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 2011/12 to 2016/17;

(3)                     Prudential Indicators from April 2012.

(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.

The report by the Assistant Chief Executive and Chief Finance Officer was the final report to Cabinet in the series on the Business Strategy and Service & Resource Planning process for 2012/13 to 2016/17, providing councillors with information on budget issues for 2012/13 and the medium term. The report set out the latest information on the Council’s financial position, included the Treasury Management Strategy for 2012/13 and considered the capital funding, including an updated Capital Programme.

The Cabinet Member for Finance & Property had prepared a separate report, which set out the basis for the Cabinet’s proposals to Council for the 2012/13 budget and Medium Term Financial Plan (MTFP) to 2016/17. This took into consideration comments on the draft budget proposals from the individual Scrutiny Committees in December 2011 as well as the latest information on the Council’s financial position. It also took account of the public consultation on the budget.

Councillor Michael Waine, speaking as the Chairman of the Strategic Review Board for Formula Funding (at the invitation of the Leader) thanked Bob Wintringham as Chairman and members of the Project Group for the work they had undertaken which had focussed on Special Needs. This was a contentious area and with consultation on a proposal being inconclusive no action was recommended to the School Forum. However schools were being encouraged to come forward as pathfinders and the Review Board would continue. Councillor Waine also welcomed the people’s premium.

The Cabinet Member for Finance & Property moved the recommendations highlighting overall progress against the Business Strategy and achievements and key issues in each of the Directorates. He emphasised that the challenging financial environment would continue in the next and future years

Sue Scane, Assistant Chief Executive and Chief Finance Officer referred to the additional information contained in the addenda and that the final grant settlement and figures on the collection fund was awaited.

Councillor Chapman thanked officers for all the work involved.

RESOLVED:                        to:

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

(1)       a budget for 2012/13 and a medium term plan to 2016/17, based on   the proposals set out by the Leader and Cabinet Member for Finance;

(2)       a council tax requirement (precept) for 2012/13;

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

(4)       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 2012;

(3)       that in relation to the 2012/13 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 2011/12 to 2016/17;

(3)       Prudential Indicators from April 2012.

(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.