Agenda item

The Committee was updated on a communication received from Central Government that afternoon which requires recorded votes for any budget setting meeting and Members were advised that, to promote transparency, in cases of any items relating to draft budgets which were to be considered by this Committee, individual votes would be recorded. Members were advised that standing orders will be amended as soon as practicable following the regulations coming into force on 26 February 2014.

The Chief Financial Officer outlined the report as set out in report pages 67 to 88, which should be read together with these minutes as a composite document. He noted that this was the usual report which comes before Members prior to the setting of Council Tax for the ensuing year.

He noted that there were complications this year in that Central Government hasn’t yet issued all the relevant information to Local Authorities meaning that the work had been based on assumptions, although the provisional figures were believed to be relatively accurate.

The Chief Financial Officer noted that the key issues and pressures on the budget had been set out in the report and a full review of the medium term financial strategy, which looks ahead for the next 3 years, would be given at the meeting of the Committee in March.

He pointed out that although the budget was balanced for this year, there is a potential shortfall of £600,000 for the 2015/16 year and the Council is looking at ways of managing this reduction. He discussed the positive effect of the New Homes Bonus and also the ability for the Council to charge 150% Council Tax on empty properties which had resulted in 41 homes being brought back into occupation.

The Chief Financial Officer discussed the business rates pool and noted that it had not gone particularly well in the first year with a loss forecast, largely owing to uncertainty of outstanding appeals against NNDR. The pool will be aborted for 12 months after which time it will be reviewed with the possibility of being reinstated in 2015/16.

He noted that there was further pressure in terms of County Council grants and funding, as they were required to make savings of £110 million over the next 4 years; this is likely to impact on recycling credits and there are going to be several potential indirect impacts on the Council’s budget like this.

He went on to discuss the review of salaries of senior managers, with effect from 1 April 2014, and the backfilling of posts, but noted that this was within the Council’s overall salary budget.

It was noted that the Council’s reserves will be reviewed to determine which ones are still relevant and where potential new reserves may be required.

Some Members noted that the report was very technical and suggested that the next report be less technical if possible.

Members asked why there is a budget of £10 million for redevelopment of the leisure facilities when Members had actually approved a budget of £9.2 million. The Finance Manager and the Director of Services noted that this was a provision which might be required to fund additional elements such as consultants, surveys and planning applications.

When asked about a new reserve being set up in the sum of £150,000, the Chief which looks ahead for the next 3 years Officer advised that this was to encourage Officers to take a greater risk, provided that it was reasonable to do so, when estimating and forecasting income.

The Leader commended the Council on maintaining a balanced and largely predictable budget. He noted that there had been no cuts to front line services and that provision for residents was improving, giving the example of the redevelopment of the leisure facilities. He was pleased that the Council had once again confirmed no increase in Council tax and made an absolute commitment to not increase the Council Tax rates in the coming year.

Councillor Mrs J M Gore abstained from the vote. All other Members present at the Committee voted in favour of the recommendations contained within the report.

RESOLVED: That Members:

(1)  Noted the overall revised General Fund revenue budget position for 2013/14;

(2)  Recommended in principle to Council the overall draft General Fund revenue budget for 2014/15, which will be the subject of a further and full report to Council on 25 February 2014; and

(3)  Recommended in principle to Council the overall draft Capital Programme for 2014/15 and noted the forward programme to 2016/17, which will be the subject of a further and full report to Council on 25 February 2014.