Agenda item

A report of the Executive is enclosed, including the following appendices A to J. 

The Executive Member (Resources) presented the Executive’s General Fund Revenue and Capital Budget and Council Tax proposals for 2012/13.

 

The report set out the overriding objectives of the proposals which were to protect frontline services and to protect the tax payer by a reduction of 1% in Council Tax. The proposals also included a new budget growth package  delivering investment in services, promoting the local economy and creating jobs.

 

The budget strategy was based on key principles previously agreed by the Executive Cabinet which were:

·         To continue to be a high performing Council.

·         To freeze Council Tax for 2012/13.

·         To continue to provide value for money for the Council Tax payers of Chorley.

·         To continue to provide assistance to those wishing to start up  businesses in Chorley to create investment.

·         To develop NEETS in our Borough into work or education.

·         Develop programmes to support the current health reforms.

·         Safeguarding frontline services, particularly to continue to support the voluntary sector and PCSOs and focusing on the removal of bureaucracy and managerial posts.

·         Looking for opportunities to share services and generate additional revenue.

·         Preparing for the future and uncertainty over public finances.

·         To look to reduce debt and the consequent financing charges.

 

The report included a number of appendices with the detailed bases of the proposals. These were

 

Appendix A – Fees and Charges for 2011/12; and the Formal Council Tax Resolution; Pay Policy for 2012/13

 

Appendix B (1 - 4) – Capital Programme information

 

Appendix C – Budget Growth Package

 

Appendix D – Treasury Strategies and Prudential Indicators 2012/13 to 2014/15

 

Appendix E – Statutory Finance Officer report

 

Appendix F – Medium Term Financial Strategy

 

Appendix G – Significant Budget Movements 2011/12 to 2012/13

 

Appendix H – Special Expenses 2012/13

 

Appendix I –  Budget Consultation 2012

 

Appendix J – Assessing the Impact of the 2012/13 Budget Proposals        

 

Members debated the Executive’s proposed budget.

 

Councillor Alistair Bradley, Leader of the Labour Group then presented an alternative budget report for 2012/13 which proposed no increase in Council tax; and included the following differences from the Executive’s proposed budget.

 

·         Further savings from the Council’s management and back office functions

·         More significant support for the creation of jobs and employment opportunities in the Borough

·         Extra and significant investment in people’s neighbourhoods

·         A massive injection of cash to support the NEET population of the Borough

·         Money to help support the vulnerable in our Borough

·         A development scheme to assist Borough residents with fuel poverty and investment in green technology by the Council.

 

Members debated the Labour Group’s alternative budget.

 

Councillor Alistair Bradley, Leader of the Labour Group proposed and Councillor Peter Wilson, Deputy Leader seconded the adoption of the Alternative Budget as circulated with the agenda and it was RESOLVED that the alternative budget be rejected.

 

Councillor Kevin Joyce, Executive Member (Resources) then proposed and Councillor Peter Goldsworthy, Executive Leader seconded the Executive’s budget proposals and it was RESOLVED -

 

 

1.    That the General Fund Revenue and Capital Budget and Council Tax for 2012/13 be approved as set out in the report (as amended by revised papers circulated under Appendices A2 and H) including:

 

              i.                A below inflationary increase in fees and charges  as set out in Appendix A1

 

            ii.                The Council’s Pay Policy, including publication on the Council’s website from April  as set out in Appendix A3

 

           iii.                A Capital Programme up to 2013/14  as set out in Appendices B1, B2, B3 and B4

 

           iv.                Approval to a Budget Growth Package as set out in Appendix C

 

            v.                Approval to the Treasury Management Strategy and its core principles as set out in Appendix D

 

           vi.                That the advice of the Statutory Finance Officer in relation to the robustness of the budget and the risks contained in the budget set out in Appendix E be noted

 

         vii.                The Council’s Medium Term Financial Strategy be approved as set out in Appendix F

 

        viii.                That the significant Budget Movements from the 2011/12 budget be noted as set out in Appendix G

 

           ix.                The Special Expenses and Parish Precepts be noted as set out in Appendix H

 

            x.                The results of the Budget Consultation for 2012 be noted as set out in Appendix I

 

           xi.                The Equality Impact Assessment be noted as set out in Appendix J

 

2.    That the Council Tax for 2012/13 be approved as set out below:

 

1.         It be noted that on 1 December 2011 the Director of Transformation under delegated powers calculated the Council Tax Base 2012/13

 

(a) for the whole Council area as 36,013.80 [Item T in the formula in Section 31B of the Local Government Finance Act 1992, as amended (the "Act")] ; and

(b) for dwellings in those parts of its area to which a Parish precept relates (as in the attached Appendix C).

 

2.         Calculate that the Council Tax requirement for the Council’s own purposes for 2012/13 (excluding Parish precepts) is £6,402,170

 

3.            That the following amounts be calculated for the year 2012/13 in accordance with Sections 31 to 36 of the Act:

 

(a) £55,099,510 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act taking into account all precepts issued to it by Parish Councils.

(b) £48,130,120 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

(c) £6,969,390 being the amount by which the aggregate at 3(a) above exceeds the aggregate at 3(b) above, calculated by the Council in accordance with Section 31A(4) of the Act as its Council Tax requirement for the year. (Item R in the formula in Section 31B of the Act).

(d) £193.52 being the amount at 3(c) above (Item R), all divided by Item T (1(a) above), calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts).

(e) £1,265,009 being the aggregate amount of all special items (Special Expenses and Parish precepts) referred to in Section 34(1) of the Act (as in the attached Appendix B).

(f) £158.39 being the amount at 3(d) above less the result given by dividing the amount at 3(e) above by Item T (1(a) above), calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates.

 

4.         To note that the County Council, the Police Authority and the Fire Authority have issued precepts to the Council in accordance with Section 40 of the Local Government Finance Act 1992 for each category of dwellings in the Council’s area as indicated in the table below.

 

5.         That the Council, in accordance with Sections 30 and 36 of the Local Government Finance Act 1992, hereby sets the aggregate amounts shown in the tables below as the amounts of Council Tax for 2012/13 for each part of its area and for each of the categories of dwellings.

 

6.         That the Statutory Finance Officer and his officers be authorised to take any action necessary to ensure collection and recovery of the Council Tax and Non-Domestic Rates.

 

7.         As there is no increase in the Council’s basic amount of Council Tax for 2012/13 and is therefore below the allowable increase of 3.5%, it is considered not excessive in accordance with principles approved under Section 52ZB Local Government Finance Act 1992.