Issue details

Cabinet received a report which formed 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 to recommend to Council budget proposals for 2015/16 through to 2024/25, in line with the final local government finance settlement for 2015/16 and in advance of some Department for Education specific grants being finalised. The draft Medium Term Financial Strategy (MTFS) was presented during the Cabinet meeting of 19 January and, subject to updated information contained within the report, was the basis for Cabinet to recommend the budget for approval by Council. Attached to the report were the relevant documents Cabinet referred to within the report.

The report also provided an update on budget consultation responses received so far, recognising that that the consultation remained open until 2 March and that some meetings with key stakeholder groups were still to take place.

Cabinet considered the report and RESOLVED to:

1. Note the updates on the budget since the Cabinet’s meeting on 19 January including: the announcement of the final Local Government Finance Settlement, the Council decision on 28 January of the Council Tax Support Scheme and the impact on the tax base.
2. Have regard to the consultation feedback received to date and statutory advice detailed in the report when determining the budget recommendations, noting that consultation remains open and further update will be provided at the Cabinet meeting and to the Council meeting.
3. Agree the budget proposals in this report, which include the updates detailed in paragraph 4.1 and additional proposals as agreed at the meeting, be approved and recommended to Council on 4 March 2015, namely:

a)    The budget is set in the context of council priorities;

b)    The budget for 2015/16 takes note of the budget monitoring position for 2014/15;

c)    The revenue budget for 2015/16 and proposed cash limits for 2016/17 to 2024/25 (including investment and savings proposals);

d)    The capital programme for 2015/16 and proposed cash limits to 2024/25  and associated capital strategy, treasury management strategy and asset management plan;

e)    A council tax freeze in 2015/16 with indicative increases for planning purposes of 2% for 2016/17 to 2024/25;

f)     That 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 is supported adequately with reserves, provisions and robust budget estimates set in the context of the risks outlined in the report;

h)   The proposals for setting fees and charges for 2015/16;

I)    To allocate £70,000 from the risk management contingency for 2015/16 to enable the library proposals to be amended to allow a staff presence at all times within the larger libraries across the city, and to assist with the implementation plans (noting that Cabinet will not make a final decision on library options until their meeting of 20^th March);

J)    To increase the capital sum for Street Cleansing by £200,000 in order to enable further investment into making services more efficient and to help keep our city clean; with the capital financing costs in 2015/16 of £4k being met from the risk management contingency, and

K)   To maintain the risk management contingency at a minimum level of £500,000.

4. Note the approved and submitted declaration of the deficit on the Collection Fund with regards to business rates for 2014/15 and the business rates forecast for 2015/16.
5. Approve the discretionary retail relief scheme, the discretionary reoccupation relief scheme and the transitional relief scheme for businesses for 2015/16.

6.    Have regard for the continuing uncertainty of national public finances and that it may become necessary to amend the budget in year if there are national changes to public spending following the general election in May.