Agenda item

The Board considered a report of the Assistant Chief Executive which informed members of Overview and Scrutiny Management Board and Corporate Issues Overview and Scrutiny Committee of the Cabinet report (11 February 2015) that provided comprehensive financial information to enable Cabinet to agree a 2015/16 balanced revenue budget, an outline 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 Head of Finance advised that a revised budget report (for copy see file of minutes) had been circulated 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 Head of Finance continued to provide a summary and highlighted key issues within the report relating to:

·         Local Government Finance Settlement

·         Government Funding Reductions Based Upon ‘Spending Power’

·         Consultations

·         Scrutiny Committee Feedback

·         Net Budget Requirement and Council Tax

·         MTFP Development

·         Financial Reserves

·         Capital Grant Allocation

The Chairman thanked officers for the work they had done during the budget process. He informed the Board that he had made representations at Cabinet on the 11 February regarding inflation, welfare provision and court cost fees and advised that Cabinet had taken the issues raised into consideration.

Councillor R Bell referred to paragraph 20 of the report and asked if the additional £966,000 received for Welfare Provision and Social Care pressures would be recurring and how the money would be spent. The Head of Finance confirmed that the money would be recurring and advised that he would be able to provide spend details after the meeting. He added that there was a reserve of £1m to be utilised over the next 12 months.

Referring to paragraph 11 of the report, the Head of Finance provided clarification to Councillor R Bell on the calculation of the council tax freeze grant.

In response to a question from Councillor Hopgood regarding the 1.5% price inflation increase, the Head of Finance explained that despite current trends, it would be difficult to predict changes over the next 12 months and for the current financial year it would be prudent for the Council to accept the 1.5%. He added that figures for 2016/17 could be amended if inflation prices remain low.

Referring to inflation and its impact on service provision, Councillor R Bell asked if it was possible to provide information regarding the pressures on service groupings in the future. The Head of Finance agreed and explained the Councils budget spends and how they impact on service contracts.

In response to a question from Councillor Wilkes regarding the Councils budget for capital repair and maintenance investment in schools that does not come directly from the government, the Head of Finance explained that the Council used two funding streams for major schemes, government grants such as the school capitalization maintenance grant and capital receipts. He added that a member working group sets a prioritised programme for the Councils capital maintenance budget.

Councillor Todd commented on the grant system and how the changes would impact on parish council resources. The Head of Finance responded that the Council works closely with town and parish council working groups and added that they are advised of changes and their impact well in advance.

Referring to the underspend in welfare provision, Councillor Shield asked if the money had been ring-fenced for welfare assistance. The Head of Policy and Communication confirmed that the underspend would be ring-fenced for the next 12 months.

Members discussed the budget reporting process and were advised that Cabinet had agreed to make the recommendations within the report to Council, taking into consideration feedback from scrutiny members, however it would be a decision of Full Council on the 25 February to set the Councils budget.

Resolved:

i)             That the contents of the Cabinet report of 11 February 2014 be noted and commented upon, prior to full Council on 25 February 2015.

ii)            That the Chairman of OSMB is charged with reporting the final scrutiny response to Council.