Issue - meetings

RECOMMENDATIONS AS AMENDED BY CABINET 9/02/16

The following is the recommended process to be followed for the debate relating to the Council’s Budget for 2016-17 (Agenda item 11). The rules of procedure shall be varied accordingly for this item only.

1 a).     The Mayor to propose suspension of the following rules of debate:

-           That the time limit on speeches is relaxed with regard to the following speeches:-

§  Cabinet Member Finance, (Finance), when moving the motion to adopt the budget being proposed by the Cabinet (“the Cabinet’s budget”), Stage 2(i).

§  Group Leaders when making Budget Statement on behalf of group, Stage 3(i) – (ii).

-           To permit the Cabinet Member Finance and Group leaders to speak more than once in the debate, (in addition to any right of reply etc), for the purpose of putting and answering questions at Stage 2(iii).

1 b).     The Mayor to remind Members that a recorded vote is required on any significant decision relating to the budget or council tax (including any amendments) as set out in Part 4A – Council Procedures Rule 14.5 as required by the ‘Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014’. This will apply to agenda items 11 and 12.

2.         Budget Statement and moving of motion

(i)         The Cabinet Member Finance shall deliver the budget statement and formally move the resolutions set out in the report of the Cabinet Member Finance. (N.B. Not time limited).
He will invite the Section 151 Officer, Paul Jones to introduce his Section 25 report.

(ii)        The seconder shall formally second the motion. (N.B. The seconder may reserve their speech until later in the debate prior to the closing speeches) 5 minute limit applies.

(iii)       Members may then ask questions of the Cabinet Member Finance (who may refer them to the Section 151 Officer when appropriate), on matters relating to agenda item 11. (N.B. members are limited to one question only, without supplementary, and the Cabinet Member Finance shall wait until all questions have been put before responding).

3.         Statements by Group Leaders

(i)         Statement on behalf of the Conservative Group including tabling but not moving, any proposed amendment to the Cabinet’s budget. (no time limit)

(ii)        Statement on behalf of the People Against Bureaucracy Group including tabling, but not moving, any proposed amendment to the Cabinet’s budget. (No time limit).

4.         Formal moving, Seconding, debating, discussion and voting on any amendments tabled in the following order:

            - People Against Bureaucracy Group

            - Conservative Group

N.B. 

§  The Cabinet Member Finance has the right to a speech in reply at the end of the debate on any amendment. (10 mins).

§  The mover of an amendment may speak to move the amendment, (10 mins), and also has the right of reply to the debate immediately before the speech of the Cabinet Member Finance. (10 mins).

§  Amendments carried will become part of the substantive motion going forward. Once  ...  view the full agenda text for item 11

The Mayor invited the Cabinet Member Finance to introduce the budget which would then be followed by a statement from the Chief Finance Officer, Paul Jones, as the Council’s Section 151 officer. To facilitate the presentation of the Budget, the Mayor proposed suspension of certain rules of debate, namely:-

That the time limit on speeches is relaxed with regard to the following speeches;

·         Cabinet Member Finance when moving the motion to adopt the budget being proposed by the Cabinet.

·         Group leaders or Group spokesperson when making budget statements on behalf of their group.

The Cabinet Member Finance and Group Leaders could also speak more than once in the debate (in addition to any rights of reply etc.) for the purpose of putting and answering questions.

This was agreed unanimously by Council.

 The Mayor reminded Members that a recorded vote must be held  on any significant decision relating to the budget or council tax (including any amendments) as set out in Part 4A – Council Procedures Rule 14.5 as required by the ‘Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014’. This will apply to agenda items 11 and 12.

The Cabinet Member Finance introduced the 2016/17 budget proposals with a detailed speech (please see Appendix 1).

The Cabinet Member Finance moved acceptance of the 2016/17 budget as set out in the report.The motion was seconded by Councillor Jordan who reserved his right to speak.

The Chief Finance Officer referred Members to his Section 25 report that had been circulated with the budget proposals. He highlighted his representation made on the interim finance settlement which given the severity of the front-loaded cuts had run to seven pages. There had been four main asks:

·         A request to remove council tax from the calculation in determining percentage cuts from the settlement core funding assessment. DCLG themselves refer to council tax as “an important source of funding which is used to meet the difference between the amount a local authority wishes to spend and the amount it receives from other sources such as government grants”. It was therefore wrong in his opinion to use the level of council tax raised, which had been subjected to twenty five annual council meetings  to determine the level of government funded support. As a consequence of this new methodology, the council’s average government funded spending power per head of population was projected to be £8 less than the average shire district urban authority by 2019/20. Unfortunately there was no change in the methodology set.

·         A fundamental review of New Homes Bonus allocations. In his opinion  Cheltenham had much less capacity for increasing the number of homes, compared to their rural counterparties given the tightly drawn boundaries. There was a separate consultation on NHB which the Council will respond to by the deadline of 10th March.

·         A major review of the front loading of the 2016/17 reduction in RSG. As referred to earlier given the council’s taxbase, Cheltenham was due to receive a much sharper decline in its RSG in  ...  view the full minutes text for item 11

Report of the Cabinet Member Finance

RESOLVED THAT it be recommended to Council that :

1.    the revised budget for 2015/16 be noted and the recommendation of the Section 151 Officer to transfer the identified saving of £307,900 to the budget strategy (support) reserve as detailed in Section 3.1 be approved.

2.    Having considered the budget assessment by the Section 151 Officer at Appendix 2 the following recommendations be approved :

3.    the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £192.12 for the year 2016/17 (an increase of 2.67% or £5.00 a year for a Band D property) be approved.

4.    the growth proposals, including one off initiatives at Appendix 4, be approved.

5.    the savings / additional income totalling £780,700 and the budget strategy at Appendix 5 be approved.

6.    the use of reserves and general balances be approved and the projected level of reserves, as detailed at Appendix 6 be noted.

7.    the proposal to abolish charges in council car parks after 6pm as detailed in Section 8 be approved.

8.    a 1% increase in all Member allowances, in line with the proposed increase in staff pay, as detailed in Section 9 be approved.

9.    the local council tax support scheme for 2016/17 as outlined in Section 11, which remains unchanged from 2015/16 other than the annual uprating for non-dependant deductions, be approved.

10.  the proposed capital programme at Appendix 7, as outlined in Section 13 be approved.

11.  the Pay Policy Statement for 2016/17, including the continued payment of a living wage supplement at Appendix 9, be approved.

12.  a level of supplementary estimate of £100,000 for 2016/17 as outlined in Section 18 be approved.

13.  it be noted that the Council will remain in the Gloucestershire business rates pool for 2016/17 (para 4.15).

14.  it be noted that the award of Transition Grant in 2016/17 of £74,460, which when added to the additional £51,557 raised through council tax, results in a reduction in the contribution required from the budget support (strategy) earmarked reserve of £126,018.

The Cabinet Member Finance introduced the report which summarised the revised budget for 2015/16 and the Cabinet’s final budget proposals and pay policy statement for 2016/17.

He reported that when the draft budget was published in December 2015 there were three key methods of dealing with the customary large gap between what was needed to maintain services and what money would be available next year. Firstly a council tax increase of just under two percent, secondly £738 000 of efficiency savings and thirdly the restrained use of reserves to overcome the short term problems such as the drop in business rates income. This whole package assumed a drop in revenue support grant of £331 000 based on the Department of Communities and Local Government modelling provided in the autumn.

He then explained however that the Government’s funding settlement announced on December 18 was a cut of £839 000 or 40% cut in 2016/17 followed by a similarly large cut the following year and in all the Government indicated that it would cut three quarters of revenue support grant in the next two years and phase it out completely by 2020.

The Cabinet Member reported that the settlement was much worse for Cheltenham than for the average district council. He said that whilst letting councils maintain a share of business rates had its merits the proposals for redistributing business rates were unlikely to be published for some time. He reminded Members that he had written to the Secretary of State before Christmas to urge that the cut in the revenue support grant should be applied more gently over a four year period so the council did not face such a precipitous drop in the first two years. This was followed up in the New Year by a long and detailed submission to the Government by finance officers explaining the reason why the settlement was unfair and based on unrealistic assumptions.

In the interim officers had worked hard to consider a way forward in these difficult circumstances. Additional income had been found, particularly identifying additional business rates income that was likely to come through business rates pooling. Savings in the current financial year were also sought and found in order to strengthen the budget strategic support reserve and cushion services against cuts in government grant. More savings and additional income was also added to the Medium Term Financial Strategy, not just for 2016/17 but for 2017/18 and the following years.

The Cabinet Member Finance emphasised that a clear strategy, focused on economic growth, was vital for the future of the town. The council would continue its support for the Business Improvement District and the emerging tourism strategy to ensure that Cheltenham played to its strengths as a visitor destination.

He also highlighted the following proposals :

·         Car parking charges to be abolished after 6pm

·         £36 000 to be allocated to fund an intensive clean-up of the town centre, a project which could be extended to other key areas of the town

·         The  ...  view the full minutes text for item 5