Issue - meetings

Cabinet Member: Finance & Property

Forward Plan Ref: 2011/168

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

Report by Assistant Chief Executive and Chief Finance Officer (CA8).

The Local Government Resource Review will substantially replace the current Formula grant system with a system based on relocalising business rates.  The new system is planned to start in 2013/14.  The government is consulting about the detailed form of this new system. This paper briefly explains the main elements of the proposed new system and sets out a proposed response to the consultation.  The deadline for responding to the consultation is 24 October.

The Cabinet is RECOMMENDED to agree to the response to consultation about the Local Government Resource which is set out in Annex 1.

Cabinet considered a report setting out a response to the Local Government Resource Review together with a report from the Leader and Cabinet Member for Finance and Property giving an overarching response.

The Cabinet Member for Finance and Property introduced the contents of the reports, indicating that the Scheme being suggested in the consultation was flawed but was step in the right direction. He did support the overarching proposal but had massive reservations. He thanked David Illingworth for his work in putting together answers to the detailed questions in the consultation.

Cabinet noted the major issues, as set out in the reports. Councillor Mitchell commented that the proposals reflected a small change in that when the County Council grew the local economy they could meet a tiny part of that increase. It did not free local government to any great extent.

RESOLVED:            to agree to the response to consultation about the Local Government Resource Review which is set out in Annex 1 and to agree the overarching response as set out in the addenda.