Agenda item

          Cabinet received a report as part of the Council’s Budget and Policy Framework that required it to initiate and propose budget proposals to set a balanced budget for the forthcoming financial year.

The purpose of the report was for Cabinet to approve the first phase of budget proposals for consultation to contribute towards closing the budget gap of £25m. Subject to Scrutiny feedback and comments from all residents, partner organisations, businesses and other interested parties, Cabinet would recommend budget proposals to Council in December 2014 to implement at the earliest opportunity; to approve and outline the approach for the remaining budget process; and to outline the financial challenge the council faces in the current financial year and in setting a balanced budget for 2015/16.

          Councillor Seaton introduced the item and advised that the Council was committed to ensuring a bright future for the city and all its people and that would mean maintaining focus on education, jobs creation, economic prosperity and the quality of life for residents. 

          Further key points highlighted by Councillor Seaton included the substantial amount lost in grant funding equating to £44m; the government grant reductions of £12.3m in 2015/16, and the additional financial pressures faced as a result of an increasing demand for services and legal changes; the total of £25m of savings and efficiencies which needed to be found in order to balance the books, whilst also allowing the Council to continue to invest in the city for future generations; an overview of why the gap had increased by £3m from the report presented to Cabinet in September 2014; the close work being undertaken with officers and the cross party working budget group; the budget proposals being shared as early as possible and the proposals being released in two phases to achieve this; the first set of budget proposals looking to save £16.8m and the second set, to close the remaining £8m gap to be published in the new year; the budget conversation that was on the website and which had featured in local media; the conversation being kept open until 11 December and all feedback to be considered at Cabinet on December 15, with recommendations to Council on 17 December; the early responses received and the value put on services such as meals on wheels, flytipping, graffiti, work around ASB, domestic abuse, drink, drugs and mental health, street cleansing, parks and open spaces.

Cabinet debated the report and key points raised, along with responses to questions provided by Councillor Seaton included:

·         The Cabinet had spent many days looking into the budget proposals and there had been a number of all party budget meetings held;

·         A number of false facts had appeared in the press. It was misleading to say that the opposition groups had made suggestions that had subsequently been ignored;

·         Suggestions that were not practical, or implementable, could not be considered;

·         The public’s views were taken seriously, as had been demonstrated by the library consultation, and the public were requested to take part in the consultation in order to inform the decisions made; and

·         There had been a number of good suggestions from other groups however there was a level of prioritisation which needed to be implemented to ensure the protection of front line services.

Cabinet considered the report and RESOLVED:

1.    To note the context for the amended budget process in light of the unprecedented financial challenge the Council faced in setting a balanced budget for 2015/16;

2.    To take a two phased approach to consultation on formulation of the 2015/16 Budget, publishing the Phase 1 proposals immediately as the basis to seek feedback from Scrutiny and views from all residents, partner organisations, businesses and other interested parties; and

3.    To convene on 15 December 2014 to consider feedback in order to seek the endorsement of the Council meeting of 17 December 2014 to the Cabinet’s approach to consultation, savings proposals and plan to implement those proposals at the earliest opportunity.

REASONS FOR THE DECISION

         The Council must set a lawful and balanced budget. The approach outlined within the report worked towards setting a lawful and balanced budget.

ALTERNATIVE OPTIONS CONSIDERED

Cabinet considered releasing all budget proposals in the New Year after the provisional finance settlement announcement as Cabinet had done so over previous financial years. The cross party Budget Working Group expressed a desire to release budget proposals earlier than in previous years. Cabinet considered the cross party Budget Working Group’s view and recognised that as work was continuing to identify and propose further budget proposals, and given the unprecedented scale of the savings to find, Cabinet agreed to publish their budget proposals in two stages.