Agenda item

The Executive Director Resources and Support Services introduced the Revenue and Capital Budgets 2015/16.  The report had been presented to Cabinet on Wednesday 14^th January 2015 and it was recommended that the Finance, Resources and Partnerships Scrutiny Committee be asked to consider what comments it wished to make on the draft Budget and Council Tax proposals before the final proposals are considered at Cabinet in February 2015.

The first draft savings plan was discussed at the Finance, Resources and Partnership Scrutiny Committee on the 16^th December 2014 and there had been a Budget Scrutiny Café held on the 13^th January 2015, which was an information gathering workshop, and gave Members a chance to ask any questions they had relating to the budget setting process.

An extract, from a draft report to be considered by Cabinet on the 4^th February 2015, was tabled showing a number of changes since the last report considered by Cabinet on the 14^th January 2015.  The overall budget “gap” and the “Savings and Financial Strategies” to meet the “gap” have both decreased by a net total of £50,000.

Inflationary increase for fuel had been removed.  New legislation regarding waste income had been reduced from £90,000 to £20,000.  Insurance premiums had increased with a net increase of £10,000.  There were minor changes on procurement, flexible retirement and the Keele Golf Course budget.

Business Rates Retention Scheme had increased to £300,000.  It was originally anticipated that the minimum revenue provision would save money.  There was some uncertainty regarding this and the S151 Officer felt it was prudent not to include this in the savings plan at this stage.

The following questions were raised by Members and answers provided:-

Q1:      What was meant by Minimum Revenue Provision?

A1:      The Executive Director Resources and Support Services advised in instances whereby Local Authorities have a positive Capital Financing Requirement, they are required to set aside a minimum amount from revenue to fund the repayment debt, this is known as the Minimum Revenue Provision.  This means that the Council would be required to pay off an element of the accumulated General Fund capital spend each year through a revenue charge.

Q2:      If the Borough Council freezes the Council Tax there would be a grant from the government, would this go into the base budget?

A2:      The Executive Director Resources and Support Services advised it would go into the base budget until the next spending review but there was no guarantee after that.  If the Council accepted the grant, deciding not to make any tax increase, an additional £63k of savings or additional income would have to be found.  If a tax increase of 1.9% was implemented, there would be no need for further savings but if tax was increased by a lesser amount, there would be a need to find some saving to make good the shortfall.

Q3:      How much more efficiency/economic savings could the Council continue to provide and what were the authority’s future aspirations?

A3:      The Executive Director Resources and Support Services advised there would be more savings through the 2020 project.  The Council’s concern was that the work force was reducing more and more with burdens being put on staff still employed.  One of the sub projects was called “easing the burden” which was looking at ways in cutting back bureaucracy imposed on Officers by internal processes and procedures.

Q4:      Would you feel the Council could still explore joint working with other authorities?

A4:      The Executive Director Resources and Support Services advised that joint working had, and was, taking place in a number of services.

Q5:      Would it be more beneficial to have the Waste and Recycling Service bought in-house?

A5:      The Executive Director Operational Services advised that the management of the service would be easier to deal with rather than going through a contract, as at present.

The Chair of the Parish/Town Councils Review of Concurrent Funding Task and Finish Group advised of a cut in the S134 monies to the Parish/Town Councils was being considered by Cabinet before the Task and Finish Group presented the final report.

A Member informed the work Scrutiny Committee carried out was important.  Cabinet needs to go back to Scrutiny before a decision was agreed.

The Chair advised that when Task and Finish Groups were established the timings to present the final report must be more accurate.

A Member voiced his opposition to the proposed 25% cut in S136 monies.

The Portfolio Holder for Finance and Resources explained that a decision had to be made at the last Cabinet but informed Cabinet had listened to Members concerns.

Resolved:-

Committee agreed that the final proposals are considered by Cabinet in February 2015.