Agenda item

To receive and consider the report of the Chief Executive (enclosed). 

To start the Budget Consultation process based on the contents of this report.

The Executive Member for Resources, Policy and Performance presented a report which set out the budget position for 2013/14 and forecast for the following two years to 2015/16.  The report also presented the relevant proposals in respect of potential investment in the Council’s Corporate Strategy priorities in 2013/14, increasing budget resilience in the longer term and budget consultation.

The information provided for the budget consultation was more detailed than in previous years.  The proposals aimed to provide a budget which was sustainable and took a long term view to take into account the uncertainty facing local government finance settlements.  The proposals also delivered projects to achieve the priorities of the administration, in the Town Centre, within neighbourhoods and relating to jobs and investment. 

The Medium Term Financial Strategy (MTFS) had been updated as there had been a number of significant changes locally, and within the public finance sector nationally during 2012/13.  The main changes had been the election of a new administration in May 2012 and the first updated Local Government Finance Settlement since the Comprehensive Spending Review 2010 which published confirmation of actual core funding levels for 2013/14 and 2014/15.  In addition there had been wide ranging changes to fundamental public finance funding regimes, namely Council Tax Support and Business Rates Retention.

The recent Local Government Finance Settlement reductions had resulted in an anticipated increased budget deficit over the next three years (summarised in the report) despite the fact that early preparation for further funding reduction had realised budgetary savings totalling £0.816m during this year.  The latest budget position was based on the key assumptions set out within the report. 

In response to a query it was clarified that the New Homes Bonus had not been included within the base budget.  This income was dependant on the number of houses built each year and it was not possible to forecast this.  It was also not known how long the New Homes Bonus would remain as a funding stream.  The New Homes Bonus was a one off payment per property but there was a year on year service delivery financial implication for the Council. 

More detail would be available about specific projects within the report to be submitted to Council on 28 February, although some projects had already begun.  This included the purchase of key Town Centre sites.  The aim of this project was to have influence over the nature of the business to widen to variety of shops on offer.  This was also an opportunity for the Council to generate a revenue income which was important.  There were plans to include the private sector in the Town Centre masterplan and utilise expertise and resources where possible. 

Members discussed the proactive hit team and noted that the team would focus on areas which required attention.  There would be a proactive approach in relation to tree maintenance, in the hope that trees would not become unmanageable.  There was a wish to involve as many agencies as possible with skip days, including Registered Social Landlords, to increase the positive impact of these events.  There were links here to the work currently ongoing in relation to civic pride. 

The Executive Leader stressed the importance of generating funding streams independently of grants from the Government, given the uncertainty regarding the future of local government finance.  Other local authorities had become reliant on funding streams and were now struggling as the Government had withdrawn these streams.  It was also important to create job opportunities for people and enable them to contribute. 

Part of the consultation would include a demonstration of how services could be improved for a small cost.  Consultation would invite responses from residents, partners, parish groups and other stakeholders through a variety of methods including a short survey (available both in hard copy and online) and events in the community such as the Flat Iron market.  Feedback received from the consultation would inform the budget proposals put forward to Council in February. 

Decision made

Approval to start the Budget Consultation process based on the contents of the report.

Reason(s) for decision

To progress the Council’s 2013/14 Budget Setting process to achieve an approved and balanced budget.

Alternative option(s) considered and rejected

Setting the budget is a statutory responsibility.