Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2013/126

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

Report by Chief Finance Officer (CA6).

This report is the final report to Cabinet in the series on the service & resource planning process for 2014/15 to 2017/18, providing councillors with information on budget issues for 2014/15 and the medium term. It sets out the proposed 2014/15 budget and the draft 2014/15 – 2017/18 Medium Term Financial Plan (MTFP).

The Cabinet Member for Finance has prepared a separate report, circulated alongside this report, which sets out the basis for the Cabinet’s proposals. The proposals take into account comments to date from the public consultation on the budget as well as the latest information on the Council’s financial position outlined in this report. Also attached is a separate report from the Income Generation Cabinet Advisory Group.

The Cabinet is RECOMMENDED to:

(a)         RECOMMEND Council to approve the updated Financial Strategy;

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

(1)  a budget for 2014/15 and a medium term plan to 2017/18, based on the proposals set out by the Cabinet Member for Finance;

(2)  a council tax requirement (precept) for 2014/15;

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

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

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

(1)  the Treasury Management Strategy Statement ;

(2)  that any further changes required to the 2014/15 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance.

(d)RECOMMEND Council to approve the Prudential Indicators as set out in Appendix A of Annex 7;

(e)         RECOMMEND Council to approve the Minimum Revenue Provision Methodology Statement as set out in Appendix B of Annex 7;

(f)           (in respect of capital) RECOMMEND Council to approve:

(1)  the updated Asset Management Plan and Transport Asset Management Plan;

(2)  a Capital Programme for 2013/14 to 2017/18;

(g)         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 had before them the final report in the series on the service & resource planning process for 2014/15 to 2017/18, which provided councillors with information on budget issues for 2014/15 and the medium term. It set out the proposed 2014/15 budget and the draft 2014/15 – 2017/18 Medium Term Financial Plan (MTFP).

Cabinet also had before them a report by the Cabinet Member for Finance which set out the basis for the Cabinet’s proposals. The proposals took into account comments to date from the public consultation on the budget as well as the latest information on the Council’s financial position outlined in the report. Also considered by Cabinet was: a separate report from the Income Generation Cabinet Advisory Group and a supplementary report by the Chief Finance Officer setting out additional information and consequent recommendations.

Councillor Liz Brighouse, Chairman, Performance Scrutiny Committee presented the comments of the Committee, set out in Annex 12. She highlighted a key concern which was to ensure that they were able to monitor the reduction in the budget and make sure that action plans were in place. She added that it was important that the Council worked together with partners including those affected in the community and voluntary sector. She referred to the Refugee Resource that had asked for the cuts to be phased to avoid loss of other funding streams and noted that at the Committee meeting this had been agreed. Councillor Hudspeth thanked the Committee for their work, and in noting that it was the first year that an opposition member had chaired the Committee thanked Councillor Brighouse for her approach and the work she had put in to it.

Councillor Nick Hards, Shadow Cabinet Member for Finance referred to the pressures on the budget and that he was impressed by the professionalism and skill of officers at a difficult time. He commented that the Income Generation Cabinet Advisory a Group had been helpful and he hoped that something would come out it. Looking at the broad picture he felt that Central Government were out of touch with the way the Council worked and had an unrealistic view of the demands placed on the Council. He expressed concern that the Council had still not been advised whether the referendum limit for Council Tax rises would be lowered. He hoped that the Council would be allowed to go to the limit currently included in the budget proposals.

Councillor Mathew speaking as Vice Chairman of the Income Generation Cabinet Advisory Group stressed that they were keen to discuss the opportunities for income generation within operations. He referred to the initial ideas set out in the paper and added that there was still much work to do.

Councillor Mathew, speaking as a councillor then indicated that he could not support crowd funding. He believed it would cost more than it would bring in. Councillor Hudspeth thanked those involved in the Cabinet Advisory Group and noted the initial suggestions and on-going work of the Group.

Mark Thompson, Connection and floating support team spoke on the importance of continuing the support for homeless people and the danger that this important work not fall between funding stools.

Kevin Kennedy, Housing Support User Group, spoke in support of the housing support fund and the services it made possible. As a former homeless person the support he had received had been vital in rebuilding his confidence and self-belief. A place to sleep and the support services available in hostels enabled people to rebuild their lives and provided a vital link to family and friends.

Sue Tanner, Convenor Oxford City Advice Forum, spoke against the proposal to cut the Oxfordshire Support Fund and asked that it continue until March 2015 when Government funding would end. This would enable time to find other ways to help people in urgent need.

Emily Broughton, spoke about her experience of the Advice Centres at a time of need for her and opposed the cuts to vital services to vulnerable people.

Gill Tishler, Oxford City Advice Bureau commended the comments of the Performance Scrutiny Committee. She gave examples of where the support provided by information and advice centres secured additional money for clients that then allowed them to stay in the community. Their early intervention saved money for local public services including the Council.

Suzy Drohan, Oxfordshire Welfare Rights, Barton Neighbourhood Centre, spoke in support of the services provided referring particularly to their successful work for clients in tribunal hearings.

Fran Bennett, Treasurer and Trustee of Agnes Smith Advice Centre, Blackbird Leys, speaking against the proposed cuts to the advice and information services detailed the role they played in supporting Council priorities to enable people to live at home and to keep well. She welcomed the community network but felt that Advice Centres provided a comprehensive service. She added that whilst grateful for advance notice of the cuts she felt that the assumption that it would allow other funding to be found was wrong. In her experience charitable organisations were not willing to replace withdrawn state funding.

Gail Hanrahan stated that her organisation was working with the Council but could only see cuts for so long before it affected the service provided. She felt that as eligible needs would still need to be met it would cost the Council more in critical care.

District Councillor David Dodds spoke against the proposed withdrawal of funding to the Oxfordshire Waste Partnership.

Councillor Hudspeth thanked all those that had attended the meeting to speak to Cabinet. He referred to the difficult choices and decisions to be faced in order to set a balanced budget. He would always listen to alternative suggestions about how the necessary savings could be made.

Councillor Fatemian in proposing the recommendations emphasised that every saving made, made each subsequent saving harder to find and there were no easy decisions with every saving being challenged as part of the process. The budget proposals were built on the basis of fairness and protecting the most vulnerable. Some savings were reinvested to manage pressures. He noted that final information was still awaited from central Government including on capital funding. He made it clear that he was continuing to take note of and give careful consideration to representations made and would continue to do so.

During discussion Cabinet Members agreed that within their own areas of responsibility difficult choices were having to be made. Essential services were being protected. The Leader referred to the careful use of reserves but the need to ensure that reserves were available for emergencies such as the recent flooding. There was some discussion about the response to the flooding in Oxfordshire and Cabinet was advised that the Deputy Leader was holding a flooding summit in March. Responding to a comment from a Cabinet Member the Leader confirmed that he would explore all possible sources of funding to address flooding problems.

RESOLVED:                        to:

(a)          RECOMMEND Council to approve the updated Financial Strategy;

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

(1)  a budget for 2014/15 and a medium term plan to 2017/18, based on the proposals set out by the Cabinet Member for Finance;

(2)  a council tax requirement (precept) for 2014/15;

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

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

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

(1)  the Treasury Management Strategy Statement ;

(2)  that any further changes required to the 2014/15 strategy be delegated to the Chief Finance Officer in consultation with the Leader of the Council and the Cabinet Member for Finance.

(d)          RECOMMEND Council to approve the Prudential Indicators as set out in Appendix A of Annex 7;

(e)          RECOMMEND Council to approve the Minimum Revenue Provision Methodology Statement as set out in Appendix B of Annex 7;

(f)           (in respect of capital) RECOMMEND Council to approve:

(1)  the updated Asset Management Plan and Transport Asset Management Plan;

(2)  a Capital Programme for 2013/14 to 2017/18;

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

(h)         Note the confirmed collection fund surplus for 2014/15;

(i)           Note the amount of funding per infant school meal taken notified by the Department for Education; and

(j)            Note the provisional education maintenance allocation for 2014/15.