Agenda item

Report of the Chief Executive and Head of Corporate Finance and ICT

Further to Minute No. 41 of the meeting held on 27 November 2014, the Cabinet considered the report of the Chief Executive and Head of Corporate Finance and ICT which provided details of the Council’s financial position for 2015/16 and 2016/17.  This followed the Local Government Finance Provisional Settlement 2015/16; the updated and new savings options that would contribute to the forecast budget gap for the next two years, the budget gap remaining and the timetable for producing a balanced two year budget plan.

In addition the report also reviewed the implementation of the 2014/15 budget reductions and provided details of a proposed amendment to the 2014/15 capital funding which was funded from external resources.

The Chief Executive indicated that the Council had recently received confirmation of the level of Government funding it would receive in 2015/16 and this had confirmed that previous forecasts were accurate and that the Council faces £55 million savings for the period 2015/16 to 2016/17. Savings of £15.478m had still to be identified and approved to meet the shortfall of £55m and further reports would be submitted to the Cabinet on proposed budget savings proposals prior to consideration at the Budget Council meeting on 5 March 2015.

The Overview and Scrutiny Committee (Corporate Services and Performance) at its meeting held on 13 January 2015 had considered and noted a report on the Council’s budget position and the budget savings proposals.

Decision Made:

That:

In relation to the 2015/16 and 2016/17 Budget Plan:

(1)       the work programme timetable set out in Annex A of the report be noted;

(2)       the update on the Local Government Finance Provisional Settlement 2015/16 as outlined in paragraph 3 of the report be noted;

(3)       the feedback from the meeting of the Overview and Scrutiny Committee (Corporate Services and Performance) held on 13 January 2015 relating to the budget items included in the report be noted;

(4)       the updated items identified as efficiencies in Annex B of the report be approved and it be noted that these will be implemented immediately by officers;

(5)       the Council be recommended to approve the following revisions to budget savings proposals as set out in Annex C of the report which were originally considered by the Cabinet on 27 November 2014:

(6)       it be noted that the Equality Impact Assessment information, the latest recorded position with respect to consultation and the identified mitigating actions for each individual proposal in Annex D of the report had been taken into account and officers be authorised to take necessary steps to progress the proposals pending consideration and determination by the Council in due course;

(7)       the Council be recommended to approve the following budget savings proposals as set out in Annex D of the report:

Community Resilience

Health & Wellbeing

Running the Council

(8)       the current position on the bridging of the budget savings gap as outlined in Paragraph 6 of the report be noted;

(9)       the Cabinet Member - Older People and Health be granted delegated authority to set the Council’s Residential and Nursing Care Home Usual Cost of Care for 2015/16 within the context and constraints of available resources, as set out in the Medium Term Financial Plan and as agreed with the Council’s Section 151 Officer, following the conclusion of the consultation process. If the Cabinet Member is minded to make a decision which falls outside the ambit of the Council’s Medium Term Financial Plan then the decision would have to be referred back to Cabinet for consideration.

(10)     it be noted that the proposals contained in Annexes C and D of the report and the subject of resolution (8) above will be the subject of a further recommendation to the Council in due course for consideration of the budgetary and policy framework implications and that all steps authorised by Cabinet to officers are preparatory not determinative steps;

(11)     it be noted that officers would comply with Human Resource policies and procedures and this would include the submission of regular HR monitoring reports to the Cabinet Member - Corporate Services and Performance;

(12)     it be noted that further budget savings options were being developed and assessed and a further report would be presented to Cabinet for consideration in February 2015;

(13)     it be noted that the Cabinet and Council would be required to consider the coherence of the budget savings proposals when taken as a whole at the Council meeting to be held 5 March 2015 in setting the 2015/16 budget and the two year financial plan.

In relation to the 2014/15 Revenue and Capital Budgets:

(14)     the progress in the delivery of the 2014/15 budget savings as set out in Annex E of the report be noted;

(15)     approval be given to the inclusion of a Greenspace related Section 106 Deposit at a cost of £38,611 in relation to work at Potters Barn Park in the Capital Investment Plan as detailed in paragraph 9.4 of the report; and

(16)      the Cabinet Member - Older People and Health be granted delegate authority to commence the procurement of services required from 1 April 2015 under the Council’s new responsibility for Social Care Services to Prisoners within the identified funding outlined in Paragraph 2.5.1 of the report.

Reasons for Decision:

To ensure that the Cabinet was fully aware of the latest Medium Term Financial Plan position; to consider £36.258m of savings options which would need to be phased over the two budget plan. This would support the Council in its duty to agree a budget for 2015/16 and the level of 2015/16 Council Tax before the statutory date of 10 March 2015, and maintain a sustainable financial future for the Council by agreeing a balanced two year financial plan for 2015/16 and 2016/17.

Alternative Options Considered and Rejected:

Additional budget savings and options would need to be identified over the next few weeks to ensure that future years’ budgets can be balanced. It is a legal requirement to set a balanced budget and to ensure the medium term financial position is robust.