Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2014/106

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

Report by Chief Finance Officer (CA8).

This report is the second in a series on the Service & Resource Planning process for 2015/16, providing councillors with information on budget issues for 2015/16 and the medium term.  The report sets out draft budget proposals to meet emerging pressures; provides an update on government consultations and sets out the review of charges.

The Cabinet is RECOMMENDED to:

(a)      note the report and addenda (that will be produced following the announcement of the Chancellor’s Autumn Statement);

(b)      consider the pressures and savings set out in Annex 1 in forming its budget proposals in January 2015; and

(c)      in relation to the review of charges:

(1)      note those charges prescribed by legislation;

(2)      approve the charges where there is local discretion as set out in Annex 2.

Cabinet considered the second report in a series on the Service & Resource Planning process for 2015/16, that provided councillors with information on budget issues for 2015/16 and the medium term. The report set out draft budget proposals to meet emerging pressures; provided an update on government consultations and set out the review of charges.

Anthony Simpson, spoke in support of Community Action Groups CAGs, on behalf of the Sustainable Didcot? CAG, as the co-founder of theKidlingtonvs climate change CAG, and as someone who works for community energy social enterprise Low Carbon Hub (in partnership with both the county council, and the CAG team). He emphasised the role played by the modest but critical funding in getting projects such as his established.

Dan Betterton, Cultivate CAG project, spoke in support of the CAG funding stating that Groups such as his would have got started without it. It enabled them to lever funds from other sources. If the funding was to be removed then he asked that it be tapered to allow time and space to address the loss.

Councillor Hards, Shadow Cabinet Member for Finance, highlighted the use of contingency funding, and commented that the pressures on children, education & families and adult social care were not abating. He queried whether if there was good news on the level of Council tax increase allowed before a referendum was required, the Council would take advantage of it to reduce pressures. He raised a number of detailed queries including the position on the £8m funding for adult social care, how robust were the savings figures for vacancies and use of agency staff and who would monitor. He indicated that he would like more information on the cuts in CEF and to see the detailed figures underpinning it. He expressed some concern about the depletion of the reserve pots. He referred to the funding for roads but noted that it was not guaranteed and even if received would be insufficient. He noted the increase in council tax base which was a welcome effect of the building boom.

The Leader and Cabinet Member for Finance responded to the points made. The Leader suggested that if the referendum was raised then it might be possible to increase reserves. Councillor Stratford, Cabinet Member for Finance noted that the budget would be a challenge with hard decisions to be made.

During discussion Councillor Heathcoat commented that the £8m referred to by Councillor Hards was not new money. She had been very robust on the need for the money and would advise people once she had news.

Lorna Baxter, Chief Finance Officer, introduced the contents of the report and referred to the supplementary report following the Chancellor’s Autumn statement.

RESOLVED:           to:

(a)       note the report and addenda (produced following the announcement of the Chancellor’s Autumn Statement);

(b)       consider the pressures and savings set out in Annex 1 in forming its budget proposals in January 2015; and

(c)       in relation to the review of charges:

(1)       note those charges prescribed by legislation;

(2)       approve the charges where there is local discretion as set out in Annex 2.