Issue details

Cabinet received a report as part of the Council’s formal budget process set out within the constitution and legislative requirements to set a balanced budget for 2015/16 and medium term financial strategy to 2024/25.

The purpose of the report was for Cabinet to commence the second and formal process to set a balanced budget for 2015/16 and medium term financial strategy to 2024/25 in line with the provisional local government finance settlement for 2015/16.

Following Council approval of phase one budget proposals at the meeting of 17 December 2014. The report set out phase two budget proposals for consultation to enable Cabinet at its meeting on 23 February to make recommendations to be made to the meeting of Council on 4 March 2015.

Cabinet considered the report and RESOLVED:

1. To commence formal budget consultation that sets a balanced budget for 2015/16 and the medium term financial strategy to 2024/5 in line with the announcement of the local government provisional settlement for 2015/16 that:

a.      is set in the context of the council priorities;

b.      takes note of the budget monitoring position for 2014/15;

c.      presents the draft revenue budget for 2015/16 and proposed cash limits for 2016/17 to 2024/25 (including the investment and saving proposals);

d.      presents the draft capital programme for 2015/16 and proposed cash limits to 2024/25 and associated capital strategy, treasury strategy and asset management plan;

e.      proposes a council tax freeze in 2015/16 with indicative increases for planning purposes of two per cent for 2016/17 to 2024/25;

f.       education funding is spent at the level of funding resources available to both schools and the council in 2015/16 and future estimates to 2024/25;

g.      the budget for 2015/16 is supported adequately with reserves, provisions and robust budget estimates set in the context of the risks outlined in the report; and

h.      presents the draft fees and charges for 2015/16.

2. To seek feedback from Scrutiny and views from all residents, partner organisations, businesses and other interested parties on the budget and budget proposals outlined in the budget consultation document for phase two appended to this report.
3. To have regard for the continuing uncertainty of national public finances that will not become known until the next parliament commences, making it unrealistic to forecast with accuracy future government grants beyond the further grant reductions contained within this report.

4.    To note that government grants will not be confirmed until the final settlement is released in February 2015.