Agenda item

To consider the revenue budget position for 2015-16 – 2017-18 and recommend to Council on 23^rd February.

The Committee considered a report which set out the current financial position for the revenue budget 2015-16 – 2017-18. 

In presenting the report the Executive Director Finance and Resources highlighted the following points:

·         The Council had not yet received confirmation of the reduction in government grant for 2015-16, although it was unlikely to change much from the indicative figure received just prior to Christmas.  A 5% reduction in the level of grant had been built into the assumptions for the medium term;

·         Risks for the medium term included the outcome of the Comprehensive Spending Review following the election in May and the potential for the New Homes Bonus scheme to change so that the authority would cease to receive proceeds from this;

·         The planned use of capital receipts to reduce borrowing costs;

·         A typographical error in paragraph 3.22 of the report which it was confirmed should read “The current projections do not include any use of balances over the 3 year plan period”;

·         A proposed Council Tax increase of 1.9%.  Government grant was available to meet the costs of keeping an increase in Council tax to 1% but this restricted the base for future years.

The following were the main points raised by members during consideration of the report:

·         Whether the Council owned sufficient assets to enable the savings predicted from the asset review to be realised.  It was noted that Redditch would be the first locality review undertaken under the proposed Joint Property Vehicle.  This would seek to establish the most efficient use of the Council’s and other public authority assets in the Borough.  Arising from this item, the Executive Director Finance and Corporate Resources undertook to let Councillor Brunner have a list of the Borough Council’s assets.

·         Whether the level of savings projected resulting from the proposed review of how Leisure Services were delivered were achievable and how any shortfall would be made up.  Officers responded that if Councillors agreed the proposed changes then significant savings could be achieved in the 2015-16 financial year.  If during the year it became apparent that the full £150k would not be achieved, the management team would seek to meet the shortfall corporately.

·         Details were provided of the revenue bids for the Essential Living Fund – which should be match funded by Worcestershire County Council; small business support, to be delivered through the Economic Theme Group, and energy management “spend to save” proposals.

At the conclusion of the debate Councillors thanked the officers, especially in the finance team, for their hard work in delivering the information necessary for the Financial Plan to be considered at this meeting.  Members also thanked officers for their continued efforts to deliver savings so that residents could continue to receive services from the Council.

Members requested that officers work immediately to identify where savings would be made to meet the shortfalls predicted for the second and third year of the Plan.  

RECOMMENDED that

1)    The bids of £91k for 2015-16 as set out in the report relating to Essential Living Fund, Small Business Support and the spend to save funds for energy management be approved;

2)    The unavoidable pressures as detailed at appendix 1 to these minutes be approved as follows:

2015/16 £238k

2016/17 £230k

2017/18 £241k

3)    The savings as detailed at appendix 2 to these minutes be approved as follows: 

2015/16 £1.005m

2016/17 £1.476m

2017/18 £1.516m

4)    That the increase in Council tax of 1.9% for 2015-16 be approved.