Resolved:  That all items on the Agenda be web-cast.

Apologies for absence were received from Councillor Ross.

There were no Substitute Members.

There were no Visiting Members.

There were none.

Resolved:  That all items on the agenda be taken in public as proposed.

Interview with:

·  The Leader of the Council, Councillor Chris Garland; and

·  The Head of Finance and Customer Services, Paul Riley.

The Chairman welcomed the Leader of the Council, Councillor Chris Garland and the Head of Finance and Customer Services, Paul Riley to the meeting to discuss the 2011/12 Budget Strategy.  Councillor Garland noted that the next three years would be particularly challenging with a requirement to make revenue savings of £2.77m in 2011/12, £1.64m in 2012/13 and £2.17m in 2013/14.  He highlighted that £1.9m in savings had been identified for consideration, but that a further £800k was required.  Councillor Garland emphasised the importance of working with the opposition to identify the required cuts to spending and informed the Committee that the Cabinet Members had arranged meetings with the relevant shadow Cabinet Members. 

Mr Riley gave a short powerpoint presentation, attached at Appendix A, regarding the Budget.  This highlighted the local and national context for the budget and Members noted that the Government’s proposed cut of £6.2bn equated to just 4% of the UK’s estimated budget deficit.  The details of the Government’s proposed £6.2bn cuts were to be announced as part of the Spending Review on 20 October 2010.  The Government had so far announced a reduction of £1.2bn in grants and a freeze on public sector pay for earners above £21,000, and had also instructed a freeze on council tax.

Mr Riley informed the Committee that the details of how the Government intended to administer the freeze on council tax had not yet been announced.  The freeze could either be implemented as an actual freeze on the rate of council tax or by providing a rebate to the Council Tax Payer.  The Committee appreciated that whilst a rebate could serve the interest of the Council better in the long run, residents would prefer an actual freeze to avoid effectively receiving a double increment the following year.  The Committee was concerned that there was a potential risk to the Council’s budget in assuming that it would receive a rebate rather than an actual freeze on council tax.  Members considered this to be a risk to the 2011/12 budgeting as the Council did not know how much of a rebate it would receive.  They also considered it a risk to the budget in the medium term as the council tax level could be frozen in 2011/12 and consequently any future council tax increase would achieve less revenue than if an increase in 2011/12 had occurred.

Turning to capital resources, Mr Riley clarified that budgeted capital financing over the next three years included growth point money under the title of ‘Grants’ and £185k from right to buy sales by Golding Homes under the title of ‘Capital Receipts in Hand’.  Some contributions for the museum had been confirmed and had therefore been included in the capital financing.  Furthermore, Kent County Council had confirmed their contributions towards the High Street Regeneration scheme and this had also been included. 

Prudential borrowing of £1.839m was identified to balance current expected financing levels with the capital programme.  Mr Riley advised that the interest and capital repayment for this  ...  view the full minutes text for item 33.

Members noted that it would be commencing its review of the Gateway at its meeting on 31 August and that the Revenues, Benefits and Customer Services Manager and Customer Services Manager would be in attendance to be interviewed regarding the Gateway.  The Head of Business Improvement and the Business Service Manager would also be in attendance to present the requested MOSAIC data relevant to its review.

The Overview and Scrutiny Officer reminded the Committee that she had asked Members to inform her of their availability for a number of dates in September for a day long Committee Meeting to interview a variety of witnesses regarding the Gateway.  The Committee agreed to hold the meeting on Thursday 16 September and agreed to incorporate the proposed visit of the Gateway into its programme for this day as well.

The Overview and Scrutiny Officer advised the Committee that the Government had recently announced consultations on the following:

• Local referendums to veto excessive council tax increases;
• The Benefits and Tax Credit System including the idea of a single integrated Universal Credit; and
• Localism and decentralism of public services.

The Committee considered forming a working group to respond to the consultations but felt that this would be burdensome given its already heavy workload.  The Committee asked the Overview and Scrutiny Officer to forward the relevant links to the consultations to the Committee to enable Members to respond on an individual basis as they felt appropriate.

Resolved:  That

a)  The Future Work Programme be noted;

b)  The proposed all day Gateway Review meeting take place on 16 September and this incorporate a Gateway visit; and

c)  The Committee be emailed the relevant internet links to the recently announced consultation pieces.

6.30 pm to 8.40pm