Agenda item

The Cabinet considered a joint report of the Corporate Director, Resources and the Assistant Chief Executive which provided comprehensive financial information to enable Cabinet to agree the 2015/16 balanced revenue budget, an outline General Fund Medium Term Financial Plan (MTFP (5) for 2015/16 to 2017/18 and a fully funded capital programme for recommendation to the County Council meeting on 25 February 2015 (for copy see file of minutes).

The Corporate Director, Resources in presenting the report advised that a revised budget report (for copy see file of Minutes) had been circulated the previous day, as the Council had received confirmation of its final grant settlement from the Department of Communities and Local Government on 4 February which had included an increase of £966,000 in revenue support grant in respect of additional funding for welfare assistance and social care services. The scale of the increase was considered to be significant enough to warrant amending the budget report and recirculating it rather than dealing with the implications by way of addendums and alterations.

Councillor J Armstrong, Chairman of Overview and Scrutiny Management Board advised that the scrutiny committees had considered in depth the budget proposals put forward by Cabinet. He advised of the meetings and seminar which had been supported by officers. The scrutiny members having considered whether there were any alternative options to propose the majority of members were in favour of the proposals and no feasible alternative options were put forward. The policy changes would successfully deliver the reductions, and congratulated cabinet colleagues on the difficult decisions it needed to make to deliver a reduced budget for a further year. He advised of the four specific areas that the members did ask Cabinet to consider further, which had been provided to Cabinet and addressed where appropriate. He advised that the Overview and Scrutiny Management Board was to meet on 13 February to consider this report, and he was aware that minority parties may put forward alternative budget proposals to the full Council meeting.

Cabinet members spoke of the continuation of the unprecedented financial reductions being imposed on the Authority, how the scale of the cuts was deepening and the continuation of further reductions in service were consistently becoming harder to find. The unfair distribution of funds between local authorities was continuing, with evidence showing the effect this was having on Durham, in particular its spending power. The measures to be taken would continue to protect front line services as far as possible, however if the cuts in public funding continued this pattern would be unlikely to continue. The consultation process had been thorough, and the views of the scrutiny members had been considered.

Cabinet members thanked officers for the work they had done in this year’s MTFP process, and remarked on how quickly and professionally the report had been updated after having only received the full settlement on 4 February.

Upon a recorded vote being taken on the recommendations detailed in the report, a unanimous vote in favour of the recommendations was reached by Cabinet members.

Resolved:

That the recommendations contained in the revised report be approved.