Agenda item

The Council considered a report from Cabinet which detailed budget recommendations for 2012/13 and the Medium Term Financial Plan 2012/13 to 2015/16 (for report see file of Minutes).

 

In moving adoption of the Cabinet report, Councillor Henig made a statement on the Budget and Precept for 2012/13, summarised as follows:

 

There continued to be an unprecedented level of cuts in Government funding, with cuts of over £65m in the current financial year.  There was a forecast of the need to deliver £159.2m of cash savings for the five year period 2011/12 to 2015/16 and savings of £171.8m when including forecasts for 2016/17.  This equated to a 40% net revenue budget reduction compared to the 2010 budget.  This was the largest programme of Council savings ever seen, and affected the poorest areas of the Country the hardest.  A recent study by the Institute for Fiscal Studies showed that the spending cuts were larger in the poorer parts of the Country, and more in the north than in the south.  1 in 10 Councils were planning a real increase in budgets, with these in particular being in the south of the Country in more affluent areas.  The programme of cuts was indefensible and obscene.

 

Councillor Henig thanked all staff involved in the process of preparing the budget.

 

In seconding the adoption of the Cabinet report, Councillor Napier added his thanks to all involved in the budget process.  Following the Autumn Statement it was clear that financial difficulties would continue beyond 2015/16, with a forecast of £172m worth of cuts between 2010/11 and 2016/17.  Despite budget pressures, some areas of growth had been achieved within the Council, and he expressed pride in the Council’s Capital Programme of £360m.

 

An Amendment was Moved by Councillor Martin and Seconded by Councillor Temple as follows:

 

Libraries

Reduce Town Centre Library opening hours to 40 hours (rather than 36 hours)

Make Ferryhill a town centre library at 40 hours per week.

For all libraries with opening hours between 31 hours and 39 hours reduce to 30 hours (rather than 20 hours)

Annual cost of opening hours adjustments = £187K per year

 

For the first year of these reductions, establish an ‘Opportunity Community Initiative Fund’ of £50k to enable grants to be made to community groups through a bidding process for them to run extended hours activity on local library premises at £5K for up to 10 libraries.

Annual cost for year 1 only = £50k

Reduce cut in book fund by £40K

Annual cost = £40k

 

Total annual cost = £277K (year 1) and £227K following years.

 

NEIGHBOURHOOD WARDENS

Reduce saving in front-line wardens, pest control officers, enforcement, and education teams by £500k.

Annual Cost = £500k

 

ECONOMIC DEVELOPMENT

Create a £1M fund for three years for training apprentices/students in engineering.  The funding will be used to provide:

• funding for secondary schools to send students to engineering training centres such as SW Training in Newton Aycliffe to cover transport and training costs.
• transport concessions for Durham-based engineering apprentices aged 16-24.
• a contribution towards apprentice training costs for over 19s to cover the current funding gap.

Annual cost = £1m

 

CAPITAL IMPROVEMENTS TO COMMUNITY CENTRES

Provide additional capital grants from a fund of £850k for community centres on the extended list to bid against where they can demonstrate they are viable and can raise the 30% matched funding.

The annual cost for funding the prudential borrowing from 2013/14 = £76k

 

Capital Improvements to Roads and Highways

Provide additional funds of £1m for road and path repairs especially linked to Member LAMA funds to enable the LAMA funds to be used more effectively.

The annual cost for funding the prudential borrowing from 2013/14 = £90k

 

Revenue costs

	2012/13	2013/14
Libraries	£277K	(£50K)
Neighbourhoods	£500K
Economic Development	£1,000K
Community Centres	-	£76K
Roads	-	£90K
Total	£1,777K	£116K

 

Funded by in 2012/13

• Stop publishing County Durham News but retain the service information distribution.

Annual Saving = £155k

• Higher targets for recycling from the twin bin system. Budget is based on 3% increase initially followed by 1% per year in two subsequent years. Experience elsewhere is that this is an extremely cautious expectation.  If the Council was to set a target for 5% initially (still much lower than other councils have experienced).

Annual Saving = £280k

 

• Reduce members’ car mileage to 45p per mile. Mileage only to be claimed for sanctioned meetings – i.e. not for ‘reading days’

Annual Saving = £34k

 

• Reduce Members Special Responsibility Allowances by 25%.

Annual Saving = £73k

 

• Reduce contingency fund by £1,235K

Annual Saving = £1,235k

 

Funded by in 2013/14

 

Reduce contingency fund by £116K

Annual Saving = £116k

 

Medium Term Financial Plan (MTFP)

At this stage the Contingency Fund has been reduced in 2013/14 to balance the additional cost in this year. It is recommended that consideration be given to achieving additional savings in 2013/14 in the following areas:

1.   Unitisation of the following functions – Communications, Business Support and Policy, Planning and Performance

2.   Reduction in the number of Directorates and personal support to them

 

Savings achieved in these areas would negate the need to reduce the Contingency Fund in 2013/14 and provide additional savings to support the overall MTFP.

 

Upon a vote being taken, the Amendment was lost.

 

An Amendment was Moved by Councillor R Bell and Seconded by Councillor Bainbridge as follows:

 

Libraries

1.      Restoration of planned Library opening hours cutbacks for Town Centre Libraries (£158,000)

2.      Restoration of planned Library opening hours cutbacks for Community Libraries (£124,000).

3.      Restoration of planned cutbacks to the book fund (£66,000)

Annual cost of opening hours and book fund adjustments = £348,000 per year

 

Funded by in 2012/13

1.      Stop publishing County Durham News but retain the Events Guide & Guide to Services.

Annual Saving = £155,000

2.      Reduce Contingency Fund by £193,000

Annual Saving = £193,000

 

Medium Term Financial Plan (MTFP)

 

The Contingency Fund would be reduced in 2012/13 pending realisation of annual recurring savings of an estimated £500,000 from 2013/14, by unitising Communications Teams and their budgets from all Service Groupings.

 

Upon a vote being taken, the Amendment was lost.

 

An Amendment was Moved by Councillor Shuttleworth and Seconded by Councillor Arthur as follows:

 

Highways Maintenance

Invest an additional £1m into the highways maintenance budget

Additional cost - £1m

 

Funded by in 2012/13

• Stop publishing County Durham News

Annual Saving = £155,000

• Reduce the Corporate Policy and Communications Team to 3 full time equivalent officers

Annual Saving = £845,000

 

Upon a vote being taken, the Amendment was lost.

 

 

On a further vote being taken it was:

 

Resolved:

That the report of the Cabinet and its recommendations be adopted in full.