Minutes:
Cabinet received a report as part of the Council’s agreed process for integrated finance and business planning.
The purpose of the report was to recommend to Council budget proposals for 2014/15 through to 2023/24, in line with the final local government finance settlement for 2014/15 and in advance of some Department for Education specific grants being finalised. The Medium Term Financial Strategy (MTFS) was presented at the meeting of Cabinet held on 3 February 2014 and remained the basis for Cabinet to recommend the budget for approval by Council. The report was supplemented with the MTFS and budget consultation and was due to be refreshed to include the updates contained within the report, for Council on 5 March 2014.
The report further provided an update on the budget consultation responses received so far, recognising that the consultation remained open until 4 March 2014 and that some meetings with key stakeholder groups had yet to take place. In addition, the report had regard to the revised budget timetable approved by Council at the meeting held on 4 December 2013
Councillor Seaton introduced the report and in the first instance acknowledged the number of consultation responses received, thanking all those involved and the hard work undertaken by officers in the development of the document.
Further key points highlighted by Councillor Seaton included the substantial number of consultation responses received in relation to the Children’s Centres and St Georges Hydrotherapy Pool; the reduction in grant by nearly £44m in 2015/16; evidence of investment in the city including Peterborough having one of the lowest shop vacancy rates in the country; GSCE results in Peterborough being the sixth most improved in the county; an independent report of UK cities highlighted that Peterborough was the UKs fastest growing city and had the second highest private sector employment growth and the fifth highest housing stock growth; Peterborough had the sixth lowest council tax in the country and it was proposed to freeze the level for the next two years.
In summarising, Councillor Seaton advised that the budget proposed struck the right balance between supporting vulnerable people and minimising the impact on services, whilst also meeting the financial challenges and placing the Council on a sound financial footing moving forward and improving the city for all residents.
Councillor Seaton further added that he had an update on the Hydrotherapy pool. Following feedback from the Disability Forum and the recent petition received, Cabinet remained committed to trying to find a future solution for the users of St Georges Hydrotherapy Pool.
It remained unclear as to whether there was a long term future for the pool given the high levels of maintenance and repair that the site required, however all avenues would be explored and the Council would continue to keep the facility open beyond April, whilst working with others to consider future options. It was advised that a number of Councillors had pledged Community Leadership Fund money in order to keep the pool open for around another three months.
The Council would work with the user group and other interested parties to try and find alternative funding for the remainder of the year, including support from Health and other funding and grants which may be available. The search for funds would also identify whether such funding could be maintained into a second year, again maintaining the services whilst longer term options were considered.
Cabinet was therefore asked to agree in principle to keep the Hydrotherapy Pool open for a maximum of two years subject to necessary income and funds being raised to fund the service, including discussions with the Health and Wellbeing Board, and the facility not requiring capital investment during that period. Furthermore, Cabinet was requested to approve the Budget and MTFS in the report, as amended by the recommendations in the ‘Funding Peterborough’s Future Growth’ report as the basis for consideration by Council on 5 March 2014.
Cabinet debated the report and comments and responses to queries included:
· It was requested that there be an amendment to the proposal in respect of the Hydrotherapy Pool to reflect that financial support from the NHS would be required;
· The Youth Council was to be acknowledged for their involvement and questions at one of the consultation events;
· It was requested that ‘Recreation’ be added to the priority for ‘supporting the city’s culture trust Vivacity to continue to deliver arts and culture and recreation’. This would encompass the sport aspect, which would ultimately support the healthy option, supporting the preventative agenda;
· The investment that the Council continued to make in Children’s Services was to be aknowledged and the extremely sensitive and efficient way in which the recent cases, as heard at the Old Bailey, had been dealt with;
· The essential frontline services, both in Children’s Services and Adult Social Care, which continued to be funded, unquestioned;
· There had been no proposals put forward in Children’s Services or Adult Social Care that would in any way put people at risk; and
· The feedback from the External Auditors had been positive and complimentary particularly in relation to the standard of the working papers.
Following debate, the Leader wished for it to be put on record that, in relation to the recent cases heard at the Old Bailey, the Cabinet thanked all of the staff members who had been involved in bringing the issues to light, dealing with them so efficiently and protecting the lives of the young girls involved.
Cabinet considered the report and RESOLVED to:
1. Have regard to the consultation feedback received to date and statutory advice detailed in the report when determining the budget recommendations, noting that consultation remained open and further update would be provided at the Cabinet meeting and to the council meeting;
2. Agree that the budget proposals contained in the report to Cabinet on 3 February, updated for items in the current report and as amended by the recommendations approved within the ‘Funding Peterborough’s Future Growth report, be approved and recommended to Council on 5 March 2014, namely:
a) The revenue budget for 2014/15 and the medium term financial strategy to 2023/24, set in the context of the sustainable community strategy;
b) The capital programme for 2014/15 to 2023/24, and associated capital strategy, treasury management strategy and asset management plan;
c) The council tax freeze in 2014/15 and 2015/16 with indicative increases for planning purposes of 2% for 2016/17 to 2023/24;
d) The proposals for setting fees and charges for 2014/15
e) The reserves position including the current budget monitoring forecast;
and that a complete MTFS document would be presented to Council.
3. Note the approved and submitted declaration of the surplus on the Collection Fund with regards to business rates for 2013/14 and the business rates forecast for 2014/15;
4. Approve the discretionary retail relief scheme to businesses and the discretionary reoccupation relief scheme for 2014/15;
5. Have regard for the continuing uncertainty of national public finances, the impact that dwelling and business growth locally will have on future funding arrangements; and
6. Recognise the challenge to close a significant forecast gap of £18m in 2015/16 and also the further gaps in later years.
Cabinet FURTHER RESOLVED to agree, in principle, to keep the Hydrotherapy pool open for a maximum of two years, subject to:
1. The necessary income and funds being raised to fund the service, including financial support from the NHS; and
2. The facility not requiring capital investment during that period.
REASONS FOR THE DECISION
i) The Council must set a lawful and balanced budget;
ii) The Council is required to set a Council Tax for 2014/15 within statutory prescribed timescales and in accordance with the local referendum requirements contained within the Localism Act 2011; and
iii) Before setting the level of Council Tax, the Council must have agreed a balanced budget.
ALTERNATIVE OPTIONS CONSIDERED
Alternative levels of Council Tax increase and areas for growth/savings could be considered but this must be seen in the context of the Sustainable Community Strategy and other constraints, along with the loss of council tax freeze grant that any increase would lead to.
Supporting documents: