Issue - meetings

To consider the enclosed report which sets out the current position with the Revenue budget for 2013/14 to 2015/16.

(Report attached)

The Committee received an update on the budget position in advance of the Council Tax Setting meeting the following week. It was reported that Heads of Service and Finance Officers had been working hard to achieve savings over recent months but could now come forward with a balanced budget, although, as ever, there were some risks involved. The Leader thanked the Finance Team for their efforts in achieving this outcome in difficult circumstances.

Officers highlighted a typographical error in paragraph 3.6 wherein it had incorrectly been stated that the cumulative grant reduction for 2014/15 was £2,289,000 (41%) rather than the £2,389,000 (43%) intended.

The proposed savings through transformation of £150,000 were based upon previous savings through this means but were difficult to allocate any more precisely. The expected VAT refunds were also not able to be finally quantified as yet. At the end of the year it was anticipated that the Council would hold just over £900,000 in balances. What was clear was that the following two years would present further challenges to the authority.

It was accepted by Members that it was a further difficult year for the Council, not helped by the late announcement of the Grant Settlement, and the meeting was informed that the outcome of a letter of appeal to the Government over the Settlement had been a further small reduction in the Council’s grant.

There was some discussion over the financial implications of the Local Plan No. 4 and the Cross Boundary Growth Consultation and whether money had previously been re-allocated for other purposes. Officers confirmed that the necessary funding was in place and undertook to provide further clarification on this matter prior to the forthcoming meeting of the Council.

RESOLVED that

the current position for 2013/14 – 2015/16 be noted and Officers be requested that Officers review the savings that can be delivered to achieve a balanced budget.