Interviews with:

·  Paul Riley, Head of Finance and Customer Services;

·  Councillor Chris Garland, Leader of the Council; and

·  Alison Broom, Chief Executive.

Following a presentation from the Head of Finance and Customer Services on the Budget and Medium Term Financial Strategy (MTFS) to brief the Committee on recent changes to the strategy since August 2012 and in response to Members questions the following points were highlighted:

• Business rates would be retained locally from 2013/14, with the County Council keeping a large share and redistributing funds to local authorities’ most in need;
• The retention of business rates presented a risk to the authority in terms of collection;
• The Local Council Tax Scheme (LTCS) and the overall reduction of 12.5% in funding would affect the Council and parishes;
• There would be a one year transitional grant from Government for the LTCS which would reduce the financial impact to 8.5%;
• The effect on parishes was discussed and the method for apportioning the risk across the borough and parishes was presented in Appendix  A of the Budget Strategy;
• Government had announced a further Council tax freeze grant of 1% or and a referendum requirement for increases by Local Authorities of 2% and over;
• The Budget Strategy set a working assumption of 1.99% rise in Council Tax which would equate to £4.43 per annum for a Band D Council Tax payer or 37 pence per month.
• The freeze grant of £123,000 was equal to a £123,000  in Council Tax;
• Forgoing a rise in Council Tax resulted further savings having to be made;
• The Council faced increased pressures and no let up on savings in the foreseeable future; and
• With regards to the Capital programme, the prudential borrowing limit had been put up to £6 million for projects that would repay the debt borrowed and bring in a revenue stream.

It was explained Appendix A, Budget Strategy 2013/14 onwards, showed the apportionment of Local Council Tax Scheme funding for parishes. The General Purposes Group had considered the effect of proposed local Council Tax scheme on parish precepts when it set the tax base for 2013/14 (the number of taxable properties in an area expressed as a proportion of the Band D value).  Work was undertaken to calculate the Tax Base for each parish. Appendix A showed funding apportioned based on the benefit currently claimed in each area, as any loss through reductions in Council Tax income would be proportionate to that value. Members were supportive of this methodology.

The Committee expressed its appreciation for the hard work attributed to the Budget Strategy and its ongoing development.

It was recommended that the method of apportionment for Local Council Tax Scheme funding shown in Appendix A of the Budget Strategy 2013/14 be endorsed by this Committee going forward.

1.  That the provisional allocation of the local council tax support funding, as set out in Appendix A of the report of Corporate Leadership Team, be agreed and notified to parish councils along with their tax base.

2.  That the revised strategic revenue projection, as set out in Appendix B of the Corporate Leadership Team, which incorporates the changes outlined in sections 1.6 and 1.7 be agreed.

3.  That the proposed savings, as set out in Appendix C to the report of Corporate Leadership Team, be agreed.

4.  That the assumptions used in the development of the available resources as detailed throughout the report of Corporate Leadership Team be noted.

5.  That consideration of the use of the additional capital resources identified in paragraph 1.13.3 of the report of Corporate Leadership Team be deferred pending the final cost of the Museum East Wing project.

6.  That the Chief Executive, in consultation with the Leader of the Council, be given delegated authority to amend the detail of the Budget Strategy arising from the annual announcement by the Department for Communities and Local Government regarding local government finance.

DECISION MADE:

1.  That the provisional allocation of the local council tax support funding, as set out in Appendix A of the report of Corporate Leadership Team, be agreed and notified to parish councils along with their tax base.

2.  That the revised strategic revenue projection, as set out in Appendix B of the Corporate Leadership Team, which incorporates the changes outlined in sections 1.6 and 1.7 be agreed.

3.  That the proposed savings, as set out in Appendix C to the report of Corporate Leadership Team, be agreed.

4.  That the assumptions used in the development of the available resources as detailed throughout the report of Corporate Leadership Team be noted.

5.  That consideration of the use of the additional capital resources identified in paragraph 1.13.3 of the report of Corporate Leadership Team be deferred pending the final cost of the Museum East Wing project.

6.  That the Chief Executive, in consultation with the Leader of the Council, be given delegated authority to amend the detail of the Budget Strategy arising from the annual announcement by the Department for Communities and Local Government regarding local government finance.

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