Budget Position Statement
To receive a presentation updating the Committee on the latest position with budget proposals for 2015/16.
(No separate report)
Minutes:
Officers provided Members with an oral update on the latest budget position for 2015/16.
Members were advised that whilst there was not currently a balanced budget for the medium term, a 3-year sustainable budget plan would be presented to Full Council in February 2015. This was a similar position to many other local authorities. Officers added that there was a general assumption that by 2019/20 Councils would have to be self-funding.
The original predicted budget shortfall for 2015/16 had been £2,314m, with further predicted shorfalls for 2016/17 and 2017/18 of £432k and £886k respectively. The latest projected shortfalls stood at £462k for 2015/16, which included a one-off use of £500k from reserves, £818k for 2016/17 and £970k for 2017/18.
The figures included a £300k reduction in pension costs as a result of an increase in the number of permitted payment years, total New Homes Bonus of £802k, minimum annual bid of £30k to continue Essential Living Fund Support should funding for this be withdrawn from the County Council and an assumed annual Council Tax increase of 1.9%.
It was assumed that there would be a reduction of approximately £500k in the Government Grant from 2014/15, the final figure for which should be made know within the following week or so, and a pay increase of 2.2%. Any cuts in funding from the County Council would hopefully be made known early in 2015, and Officers had stressed to the County Council that they needed to be informed of any cuts as soon as possible.
Officers advised that a great deal of work would be carried out over the following few weeks to produce a sustainable 3-year budget for Executive Committee on 3rd February 2015. This would then be considered by the Overview and Scrutiny Committee on 17th February, prior to Full Council on 23rd February. More detail would be included in the budget on how the proposed £645k of Strategic Purpose savings would be made, and from which services and transformation projects savings had been made.
Officers stated that the Council’s external auditors, Grant Thornton, were comfortable with the approach being taken on the budget for 2015/16 and for the following 2 years.
Members thanked Officers and the Portfolio Holder for their work on the budget and were pleased to hear that Grant Thornton were comfortable with the current position. A measured approach had been taken with the budget in recent years, the results of which were now being seen.
RESOLVED that
the position be noted.