Issue - meetings

Report of the Cabinet Member Finance

RESOLVED THAT

1.      the budget setting timetable at Appendix 2 be approved.

2.      the expected cut in government funding of £844k (13.6%) for 2014/15 and estimated funding gap of £989k be noted.

3.      the budget strategy outlined in section 4 and appendix 3 be approved.

4.      the Section 151 Officer and the Cabinet Member for Finance be requested to consider suggestions from the Budget Scrutiny Working Group in preparing the interim budget proposals for 2014/15 as outlined in section 5.

The Cabinet Member Finance introduced the report which proposed a broad strategy and outlined a process for setting the budget, housing rents and council tax for 2014/15. It outlined a number of principles that needed to be established at this stage to enable budget preparation to commence.

The Cabinet Member explained that there had been unprecedented cuts in the Government’s Revenue Support Grant (RSG) and it was likely that in 2014/15 it would be to the tune of £844k. To that end the Medium Term Financial Strategy projections have been updated to reflect the planned funding cuts per the next spending review with the funding gap for 2014/15 rising to £989k. He reported that the good news was that there was a programme of identified savings so these cuts would not affect frontline services. This included the Leisure and Culture Trust, the senior management restructure and the contribution from shared services. He highlighted that there would be a further cut in grant the following year which would make it increasingly difficult. In addition, from 2015 the Government was intending to top slice the New Homes Bonus to fund economic development which was a cause for concern. The main focus now for CBC was to find efficiency savings and reduce costs.

The Leader added that this was part on an ongoing process but supported the current approach.

RESOLVED THAT

1.      the budget setting timetable at Appendix 2 be approved.

1.      the expected cut in government funding of £844k (13.6%) for 2014/15 and estimated funding gap of £989k be noted.

2.      the budget strategy outlined in section 4 and appendix 3 be approved.

3.      the Section 151 Officer and the Cabinet Member for Finance be requested to consider suggestions from the Budget Scrutiny Working Group in preparing the interim budget proposals for 2014/15 as outlined in section 5.