Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2013/094

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

Report by Chief Finance Officer (CA7).

This report is the second in a 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.  The report sets out draft budget proposals to address shortfalls in funding and other emerging pressures identified over the medium term and provides an update on the latest financial position. The report also provides an update on government consultations and sets out the review of charges.

The Cabinet is RECOMMENDED to:

(a)      note the report and that an addenda 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 2014;

(c)      in relation to the review of charges:

1)     approve the updated Corporate Charging Policy;

2)     note those charges prescribed by legislation;

3)     approve the charges where there is local discretion as set out in Annex 2, giving flexibility to the Outdoor Education Centres to reduce the charge from the maximum rate to take account of demand and seasonal factors, and to vary the charges at Hill End to reflect market demands and any increase in costs (up to a maximum increase of 10% above the proposed rate applicable from 1 April 2014).

Cabinet had before them the second in a 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.  The report set out draft budget proposals to address shortfalls in funding and other emerging pressures identified over the medium term and provided an update on the latest financial position. The report also provided an update on government consultations and sets out the review of charges.

Councillor Nick Hards, Shadow Cabinet Member for Finance welcomed the improved signs of growth and the improved collection fund predictions referred to in paragraphs 8 and 9 of the report. He expressed concern over the potential impact of the ‘bedroom tax’ on collection rates. He felt that it was unacceptable that the RSG figures were not yet available from central Government. He highlighted the position with regard to Adult Social Care and welcomed the Corporate Charging Policy recognising the need to raise revenue wherever possible.

Cabinet Members responded to the points raised and in particular made it clear that top priorities were the care and respect for vulnerable groups including the safeguarding of children.

Councillor Fatemian introduced the contents of the report and addenda setting the current process within the context of recent year on year reductions in government grant and highlighting key areas including the impact of demographic changes on demand for services, the review of children’s centres and the review of integrated transport. He referred to the Corporate Charging policy and thanked the Income Generation Cabinet Advisory Group for their work.

During discussion the Leader thanked the Cabinet Member and the Chief Finance Officer and her team for the work undertaken and recognised that it would be a challenging and difficult budget.

RESOLVED:                        to:

(a)      note the report and also to note the 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 2014;

(c)      in relation to the review of charges:

1)     approve the updated Corporate Charging Policy;

2)     note those charges prescribed by legislation;

3)     approve the charges where there is local discretion as set out in Annex 2, giving flexibility to the Outdoor Education Centres to reduce the charge from the maximum rate to take account of demand and seasonal factors, and to vary the charges at Hill End to reflect market demands and any increase in costs (up to a maximum increase of 10% above the proposed rate applicable from 1 April 2014).