Agenda item

As detailed in the recommendations.

The Head of Finance introduced the report to present the final 2014/15 revenue budget proposals for the Council Fund for recommendation to County Council.  She provided background information and advised that the draft proposals had been presented to Cabinet on 21 January 2014 for initial approval and had also been referred to Overview and Scrutiny Committees for consideration and feedback.  The formal Council Fund budget setting for 2014/15 and setting of the Council Tax for the year would take place at a meeting of the County Council later in the day.

                        The Head of Finance advised that the Cabinet’s initial budget proposals for 2014/15 had identified a budget gap of £0.915m at that stage.  At the Corporate Resources Overview & Scrutiny meeting on 3 February 2014 Members were advised that the budget shortfall had reduced to £0.540m as a result of the net effect of a number of items identified as part of the emerging Month 8 budget monitoring position.  Members had also been advised that the following items were still under consideration in an attempt to achieve a balanced budget:

·        Further corporate efficiencies (procurement and back to basics)

·        Workforce –costs of employment

·        Council tax level

·        Ongoing review of budget assumptions and intelligence

The Head of Finance reported that following detailed consideration of the above and the inclusion of further corporate and functional efficiencies and efficiencies relating to workforce costs the budget proposals for 2014/15 were now balanced.   

                        In commending the report to Members, the Head of Finance drew attention to the section of the report relating to risk assessment and assurance and some of the risks that would need to be monitored in 2014/15.   She also referred to the process undertaken for assessing any potential equalities impact issues. 

                        The Head of Finance outlined the final budget proposals and its funding which was detailed in the report.   

                        The Leader of the Council expressed his thanks to the Cabinet and Corporate Management Team, and all who were involved in the budget process and the work undertaken to close the budget shortfall.  He referred to the unprecedented financial challenges facing the Authority at the current time and in the future and expressed his appreciation for the ongoing commitment to protect front line services as far as possible.    Members reiterated the sentiments expressed by the Leader and added their thanks to all Members and Officers. 

                        The Chief Executive referred to the assurances given in the statement by the Head of Finance on the robustness of the estimates and adequacy of reserves, and his report in relation to the budget strategy and Organisational Change Programme which were contained in the report.    He thanked Senior Officers for their professionalism and diligence in working through the budget process.

            RESOLVED:

That the following be recommended to County Council on 18 February 2014:-

(a)       That the 2014/15 Council Fund Revenue Budget Requirement be set at £253.718m (which is £1.423m below the calculated Standard Spending Assessment) (4.01).

(b)       That there be a 3.0% increase in Council Tax at Band D and an assumed 99% collection rate (4.02).

(c)        The inclusion of the Outcome Agreement Grant of £1.458m in the budget (4.03).

(d)       The levels of inflation assumed in the budget (4.04 – 4.06).

(e)       That items of non-standard inflation are only allocated out to services when the actual increase in cost is known (4.05).

(f)         The amount of £0.092m included in the budget relating to a transfer into the settlement (4.07).

(g)       The inclusion of £4.872m of recurring pressures in the budget (Appendix 4) and that any proposals to vary the use of the sums allocated are to be the subject of a further report to Cabinet for consideration (4.08).

(h)        The inclusion of estimated one-off costs totalling £4.800m in the budget (Appendix 5), to be funded in line with the Investment Strategy (section 6).

(i)         The inclusion of efficiencies of £11.950m in the budget (4.10).

(j)         The inclusion of efficiencies of £11.950m and that the achievement of all efficiencies be monitored monthly and reported through the budget monitoring report with any corrective action taken in-year as has been the case in previous years (4.10).