Issue - meetings

MEMBERS ARE REMINDED TO BRING THEIR COPY OF THE MEDIUM TERM FINANCIAL STRATEGY (MTFS) 2016/17 – 2025/26 PROPOSALS DOCUMENT FROM CABINET DATED 8 FEBRUARY 2016 TO THE MEETING IN ADDITION TO THIS AGENDA PACK.

Cabinet received a report which was formed part of the Council’s formal budget process, as set out within the Constitution and as per legislative requirements to set a balanced budget for 2016/17.

The purpose of the report was for Cabinet to consider budget proposals for recommendation to Council on 9 March 2016.

Cabinet would have a further opportunity to review proposals on 29 February 2016, before making a final recommendation to Council.

The Cabinet Member for Resources introduced the report highlighting the main points contained within. The report updated on the financial picture for the forthcoming year ahead and beyond and how the Council proposed to tackle the financial challenges. The first phase of the budget proposals had been approved and the report started the budget conversation on the second phase.

Following on from government grant cuts of approximately £54 million and increased demand for services worth over £14 million, the Council would need to adapt and improve its efficiency in order to save over £24 million, whilst continuing to invest in the city for the benefit of this, and future generations. The Council had not yet received its financial settlement from the Government for the next year, which had been delayed. An update would be provided on the position at the Cabinet meeting to be held on 29 February 2016.

The second phase of proposals detailed how remaining savings would be made, with there being no proposed reduction in services for residents. The Council aimed to become more self-sufficient by selling services to other local authorities in order to generate income and to continue to take the dividends from growth and invest to make savings in the long term.

The proposals did include a council tax increase, half of which would be used to invest in Adult Social Care. Peterborough would continue to have one of the lowest Council Tax levels in the country.

The budget consultation would remain open until 7March 2016 and feedback would be considered at the Cabinet meeting to be held on 29 February 2016, with recommendations to be made to Full Council on 9 March 2016.

Following further comments from the Council’s Corporate Director Resources and the Service Director Financial Services, Cabinet debated the report and in summary, key points raised and responses to questions included:

·         It was commented that the creation of a Housing Joint Venture Company, with a third party, was actively underway to create all types of housing in the city;

·         The Council could only borrow to fund expenditure on assets that had a long term life e.g. schools and road infrastructure improvements;

·         In the Phase 2 Budget Proposals, the debt repayment profile would change to a repayment of the same amount every year;

·         Investment in transport infrastructure proposed a £10.5 million planned investment in Bourges Boulevard which would focus on cyclists and pedestrians, the development of Junction 20 serving Paston and Norwood and the resurfacing of Nene Parkway;

·         There were significant investment proposals alluded to relating to street lighting  ...  view the full minutes text for item 7