Decision details

To update the position on the achievement of Revenue budget savings for 2013/14, and to determine actions to be taken. It is essential for financial planning that the Council achieves its agreed targets. Where there is an expectation that a saving will not be achieved, it is essential that that compensatory action is taken to ensure the Council is not adversely affected financially.

The Cabinet considered the report of the Head of Corporate Finance and ICT which provided details of the progress made on the achievement of the approved budget savings for 2013 – 2015, an update on the collection rates for Council Tax and Business Rates and a financial overview of the 2013/14 Capital Programme.

The Head of Corporate Finance and ICT reported that based on the latest budgetary information available from the Government, it was currently predicted that the Council would need to make further budget savings of £28m for 2015/16 and £22m for 2016/17 and that officers would need to commence a review of potential policy changes, as part of the process of producing budget savings options in advance of the Council Year 2015/16.

The Chief Executive indicated that the Council’s two year budget plan for 2013 – 2015, addressed the known budget savings prior to the start of 2015/16 and that it would give officers more time to carefully plan for the implementation of the further budget savings to be made subject to the approval of the Council. The Leader of the Council (Councillor P. Dowd) and other Members of the Cabinet expressed their concern at the predicted level of further budget savings which would need to be made by the Council and the impact it would have on the delivery of Council services in future years and requested officers to look at the potential implications on the controllable and variable costs in the Council’s budget and submit the details to a future meeting of the Cabinet

Decision Made:

That:

(1)       the progress to date on the achievement of the approved budget savings be noted;

(2)       it be noted that earmarked reserves would be utilised in 2013/14 should other savings not be achieved, elsewhere in the budget, to bridge the current budget gap, set out in the report;

(3)       the current position on the collection rates of Council Tax and Business Rates be noted;

(4)       following the recent consultation with Parish Councils, the Double Rating saving proposals for 2014/15 should proceed as planned;

(5)       the Council be recommended to give approval to an increase in the REECH Project capital programme expenditure of £5m, to be offset by £5m income; and

(6)        the verbal update on the predicted level of budget savings that would need to be made for 2015/16 and 2016/17 be noted and officers be requested to submit a report on the potential implications on the controllable and variable costs in the Council’s budget to a future meeting of the Cabinet.

Reasons for Decision:

To ensure the Cabinet are informed of the latest position on the achievement of budget savings and the collection of Council Tax and Business Rates for the current financial year and provide details of a proposed increase in the REECH Project subject 100% funding.

Alternative Options Considered and Rejected:

None