Issue - meetings

DELIVERING THE CO-OPERATIVE VISION WITHIN A THREE YEAR SUSTAINABLE BALANCED BUDGET (INCLUDING 2014/15 DRAFT BUDGET AND COUNCIL TAX)

 

 

Meeting: 11/02/2014 - Cabinet (Item 106)

106 DELIVERING THE CO-OPERATIVE VISION WITHIN A THREE YEAR SUSTAINABLE BALANCED BUDGET pdf icon PDF 154 KB

Further to the indicative report “Delivering the Co-operative Vision within a three year sustainable balanced budget” which was agreed by Cabinet on 10 December 2013 for consultation, Tracey Lee (Chief Executive) will submit a report on proposals for the 2014/15 budget.

 

The local government financial settlement for 2014/15, (with indicative allocations for 2015/16), is still subject to final approval by the Government with the decision not expected until mid-February 2014. 

 

This update report details:

·         the impact of the settlement for Plymouth compared with our resource assumptions;

·         how we have closed the £1.1m revenue gap for 2014/15;

·         a breakdown of costs to be incurred by, and benefits attributable to, the Council’s Transformation Programme in 2014/15;

·         a risk register detailing the high level risks associated with the revenue and capital budgets 2014/15 to 2016/17.

 

In addition to complying with our statutory requirements for budget setting, we are also publishing a three year Co-operative Council Financial Plan to provide clarity as to how we are managing and investing our finances through these challenging economic times.

 

Additional documents:

Minutes:

Further to the indicative report “Delivering the Co-operative Vision within a three year sustainable balanced budget” which was agreed by Cabinet on 10 December 2013 for consultation, Tracey Lee (Chief Executive) submitted a report on proposals for the 2014/15 budget.

 

The update report detailed -

 

(a)

the impact of the settlement for Plymouth compared with our resource assumptions;

(b)

how the £1.1m revenue gap for 2014/15 had been closed; 

(c) 

a breakdown of costs to be incurred by, and benefits attributable to, the Council’s Transformation Programme in 2014/15;

(d) 

a risk register detailing the high level risks associated with the revenue and capital budgets 2014/15 to 2016/17;

(e)

that at the time of writing the report the precepts had not been agreed for the Police and Crime Commissioner and the Devon and Somerset Fire Authority.

 

In addition to complying with the statutory requirements for budget setting, a three year Co-operative Council Financial Plan would be published to provide clarity as to how the Council was managing and investing finances through these challenging economic times.

 

Councillor Lowry (Cabinet Member for Finance) introduced the proposals and indicated that -

 

(f)

the financial challenges were increasing year on year with year on year reductions in funding from government;

(g)

transformation would deliver net benefits of £1.2m in 2014/15 with greater financial savings being generated in future years;

(h)

 

the Council had the lowest average Council tax in the region and that the action taken to support the building of more homes would increase the tax base; 

(i)

a one point nine nine per cent (1.99%) increase in Council tax was proposed;

(j)

 

the Council had an ambitious capital programme of £207m, with funding for roads, two new schools, a housing loan scheme and a bid submitted for the history centre/ curiosity shop; 

(k)

whilst the budget was being cut, the Council was protecting front line services, although it would be necessary to reduce staff by 300.

 

Alternative options considered and reasons for the decision –

 

As set out in the report.

 

Agreed that a final version of the Revenue and Capital Budget for 2014/15 is presented for sign off to Full Council on 24 February 2014 and that the City Council is Recommended - 

 

(1)

to agree that an additional allocation of £0.5m is added to the staff pay contingency for 2014/15;

(2)

to agree that the revenue contingency of £1.3m in the 2013/14 base budget is reduced to £1m for 2014/15;

(3)

 

to agree that additional resources as determined through the December 2013 Settlement are deployed to the 2014/15 revenue budget as required (and detailed in this report);

(4) 

to approve an increase of one point nine nine per cent (1.99%) in Council Tax for 2014/15;

(5)

to approve the proposed net revenue budgetrequirement for 2014/15 of £204.680m;

(6)

to approve the total capital budget of £207.670m for 2013 to 2017. Any changes to the overall capital funding available to be sanctioned by the Council’s Section 151 Officer;

(7)  ...  view the full minutes text for item 106