Issue - meetings

To enable Members to consider the revenue budget for 2014/15 and set the council tax.

(Report attached)

The Committee considered a report which represented the culmination of the budget setting process for the 2014/15 financial year. As was clarified by Officers, the present report focussed on the initial one year period, following which a further report would be forthcoming that detailed the financial plan for the period to the end of 2016/17.

The background to the budget was explained in some detail, with a demonstration provided showing the very significant fall in central Government Formula Grant funding over recent years. This was at a time when service demand was expected to increase, in part because of the withdrawal of service provision or funding by other public sector partners. Other financial pressures were arising through factors such as the Public Sector Compliance work which the Council was having to undertake, the revaluation of the Abbey Stadium and the costs associated with the Council’s Pension Fund.

Given the Council’s financial circumstances, only one bid was being recommended and this was in respect of an economic development project being promoted by a number of local authorities but which would have a disproportionately positive impact on Redditch. A significant amount of money was being taken from reserves, savings were to be realised through vacancy management and further savings realised through a six month plan to drive forward transformation. The inclusion £1/2M of unidentified savings was not considered ideal and Officers echoed the concern expressed by the Council’s External Auditors around the authority’s financial resilience.

It was noted that 2014/15 was going to be a difficult year for public sector finance generally and the Financial Services Team was thanked by the Leader of the Council for the work it had undertaken in preparing a budget. The Committee was also advised that a Council Tax rise of 1.9% was being recommended, a level which would generate an increase in income of over £100K over the previous four years during which Council Tax had remained static. The Leader also noted that the Council would continue to provide free concessionary bus travel before 9.30am, free swimming for the under-16s and over-60s and free car-parking in Council car parks.

RECOMMENDED that

1)            the bid for £25K for the Eastern Gateway be approved;

2)            the budget for 2014/15 of £11.331M be approved;

3)            the use of earmarked reserves of £1,196K be approved;

4)            the unavoidable pressures detailed in appendix 2 of £335K be approved;

5)            the savings detailed in appendix 3 of £786K be approved;

6)            the Council Tax be increased by 1.9% for 2014/15;

7)         it be noted that at its Executive Committee meeting on the 14th of January 2014 Council calculated the following amounts for the year 2014/15 in accordance with regulations made under Section 33 (5) of the Local Government Finance Act 1992:

a)            24,656.96

Being the amount calculated by the Council, in accordance with regulation 3 of the Local Authorities (Calculation of Council Tax Base) Regulations 1992, as its Council Tax Base for the year (item T in the formula in Section 31B  ...  view the full minutes text for item 144