Issue - meetings

Report of the Cabinet Member Finance and the Director Resources

The Mayor invited the Cabinet Member Finance to introduce the budget which would then be followed by a statement from the Director of Resources, Mark Sheldon 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 by Council with 2 abstentions.

The Mayor referred to a letter from the DCLG which had been sent to all Chief Executives suggesting that a recorded vote was held on all items relating to the budget. She proposed that a recorded vote was 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 8 and 9.

This was resolved unanimously.

The Cabinet Member Finance introduced the 2014/15 budget proposals with a detailed speech (please see Appendix 1).  

The Cabinet Member Finance moved acceptance of the 2014/15 budget as set out in the report.  The motion was seconded by Councillor Jordan who reserved his right to speak.

The Director of Resources referred to appendix 2 in the budget papers which set out his assessment of the budget and the financial risks and made the following points:

• He was satisfied that sufficient provision had been made in the budget and MTFS for future pay awards and pension-fund costs.
• There had been positive progress regarding recovery of the Icelandic bank deposits as a result of the auction of Llandsbanki claim in January 2014, where the amount recovered was above expectations, but the full impact of this was still to be built into the MTFS.
• He considered setting up a car parking reserve from the North Place receipts was a positive step to cover any shortfall in car parking income. The setting up of other reserves to support Civic Pride and implementation of the Leisure and Culture Trust was also a sensible approach. Overall the general reserve remained in his previously recommended range of £1.5 to £2 million.
• Management of pooled business rates had been challenging for officers particularly with the continuing release of guidance from government but he was confident that the future was bright. There would continue to be ongoing volatility so a reserve was prudent.
• There was a sound business strategy to support the MTFS through commissioning, shared services and other projects.
• He acknowledged that the decision to freeze council tax had been a political one but was  ...  view the full minutes text for item 8

Joint report of the Cabinet Member Finance and the Director Resources

RESOLVED THAT it be recommended to Council that :

1. The revised budget for 2013/14 with a projected budget saving of £444.6k be noted and that the proposals for its use be approved as detailed in Section 3.2.

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

1.      the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £187.12 for the year 2014/15 (a 0% increase based on a Band D property)be approved.

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

3.      the savings / additional income and the budget strategy at Appendix 5 be approved.

4.      the proposed capital programme at Appendix 6, as outlined in Section 9, including the additional underwriting of £360,000 to support the Art Gallery and Museum redevelopment scheme (separate report to council) be approved.

5.      the proposed Property Maintenance programme at Appendix 8, as outlined in Section 10 be approved.

6.      the reserve realignments outlined in section 8 and the level of reserves projected at Appendix 6 be approved.

7.      the Pay Policy Statement for 2014/15 at Appendix 9 be approved.

8.      a level of supplementary estimate of £100,000 for 2014/15 as outlined in Section 14 be approved.

9.      it be noted that the Council will remain in the Gloucestershire business rates pool for 2014/15 (para 4.12).

10. there be no change to the Local Council Tax support scheme in 2014/15 (para 4.18).

The Cabinet Member Finance introduced the report and highlighted the changes to the budget proposals since the publication of the interim budget in December.  He reported that the council had received an increased share of the business rates than had been anticipated but it remained uncertain how much income would be generated until the end of the year. The council would be partially liable for the cost of appeals and it was therefore being proposed to set up a business rates reserve of £350 000 to safeguard against the cost of these appeals and the fluctuation of income in the future. He also reported that in association with the LGA and Bevan Brittan the council’s claim against Landsbanki had now been sold at auction to the amount of approx £2 million. Overall the council had now received 85 % of the capital and interest due on the total outstanding Icelandic investments. He reported that a further £700 000 was expected to be reclaimed from Glitnir and Kaupthing, Singer and Friedlander with the total recovery rate being more than 90 % which was better than originally anticipated.

The Cabinet Member Finance also reported that the Pay Policy Statement had now been included in the report and referred to the fact that the Cabinet Member Corporate Services was preparing a report on the Living Wage which would be considered by the Appointments Committee in March with the possible implementation of the policy by end 2014. He confirmed that as of April 2014 all council employees would in any case earning the Living Wage.

The Leader of the Council stated that this was a positive budget for Cheltenham. Due to the reversal of the Government’s decision to topslice the New Homes Bonus the Cabinet was able to propose a council tax freeze for 2014/15. This was most likely the reason why the budget consultation had received very little feedback. He thanked the finance officers and the Cabinet Member Finance for their hard work in producing this budget.

RESOLVED THAT it be recommended to Council that :

1. The revised budget for 2013/14 with a projected budget saving of £444.6k be noted and that the proposals for its use be approved as detailed in Section 3.2.

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

1. the final budget proposals including a proposed council tax for the services provided by Cheltenham Borough Council of £187.12 for the year 2014/15 (a 0% increase based on a Band D property)be approved.
2. the growth proposals, including one off initiatives at Appendix 4, be approved.
3. the savings / additional income and the budget strategy at Appendix 5 be approved.
4. the proposed capital programme at Appendix 7, as outlined in Section 9, including the additional underwriting of £360,000 to support the Art Gallery and Museum redevelopment scheme (separate report to council) be approved.
5. the proposed Property Maintenance programme at Appendix 8, as outlined in Section 10 be approved.
6. the  ...  view the full minutes text for item 5