Issue - meetings

To consider the current financial position for the revenue budget 2014/15- 2016/17.

(Report attached)

The Committee considered a report which set out the financial position for the revenue budget for 2014/15. Given the difficult financial situation in which this and other Councils found themselves, Officers were presenting a one year budget at this stage. A further report would be submitted to the Committee in September / October 2014 which would look ahead to the 2015/16 and2016/17 financial year.

Officers highlighted the decrease in central Government funding over recent years which was, in part, being masked by the aggregation of specific grants into the overall financial settlement. Alongside this reduction in the Revenue Support Grant there were a number of other unavoidable budget pressures with which the Council was having to contend, such as pensions costs, reductions in funding from the County Council and reductions in specific revenue streams such as the Department of Work and Pensions administration subsidy. The Council was only being asked to consider a single revenue bid, that for the Eastern Gateway, which it was anticipated would result in economic development opportunities.

A number of measures had been undertaken to reduce the projected shortfall, including the redesign of a number of service areas, an increase in income through services such as CCTV and Lifeline and a proposed 1.9% increase in Council Tax for the coming year - there remained a small outstanding shortfall but Officers intended to address this prior to the next meeting of the Committee.

The Leader advised that he had written to the Government concerning the poor Financial Settlement as agreed at the previous meeting and thanked Jayne Pickering, Section 151 Officer, Sam Morgan, Deputy Section 151 Officer, and the Financial Services Team for their hard work in developing the current budget proposals under difficult circumstances.

Concern was expressed that specific accumulated reserves were being used to meet the current deficit with the result that the Borough would be left in a far from ideal financial situation for ensuing years and administrations. The Eastern Gateway bid was also discussed, with the use of consultants being contrasted with a previous decision to remove a budget heading for consultants. Officers confirmed that expenditure for the use of consultants was presently being met through savings on vacant posts or through budgets already available to support transformational activity.

The Committee considered the comments upon the Medium Term Financial Plan from the Overview and Scrutiny Committee and

RESOLVED that

the current position for 2014/15 be noted and Officers be requested to review the savings that can be delivered to achieve a balanced budget.