Agenda, decisions and minutes

There were no apologies.

There were no declarations of interest.

The minutes of the meeting held on 9 December 2014 will be approved at the January 2015 meeting of Cabinet.

The minutes of the meeting held on 9 December would be approved at the January meeting of Cabinet.

There were no questions or petitions.

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which set out the Cabinet’s interim budget proposals for 2015/16 for consultation. He explained that it was a difficult time for all councils. Core government funding for Cheltenham had been cut by £5 million since 2009/10 and there was likely to be a further grant reduction of 15.3 % in the coming year. Due to the robust local economy the council had a larger share of business rates of approximately £700 k. In terms of efficiency savings £686 k had been incorporated into this year’s budget due to the restructuring of senior management, shared services, GOSS procurement and £284 k from the Cheltenham Trust.

The Cabinet Member Finance highlighted the importance of commissioning and shared services which were generating £2.6 m of savings annually and by 2018/19 this would amount to £10.4 m. It was being proposed to freeze Council tax and car parking charges in addition to the weekly charge for the Lifeline service. He reported that there had been an increase in New Homes Bonus income but a cautious approach in its use would continue due to uncertainty about its sustainability longer term. Accordingly the amount of NHB being directly taken into the revenue budget would be 68 % of the total expected income in 2015/16. It was proposed that the remainder should be earmarked for one off or time-limited spending and £400k would be set aside to fund the initial cost of the restructure for Vision 2020. One off uses included £50 k to support the Community Pride fund. It was also proposed that the council would continue to contract CHAC for its outreach work with the homeless.

The Cabinet Member Finance took the opportunity to thank the Finance Team, in particular Mark Sheldon and Paul Jones, for their work and sense of corporate focus in developing the medium term financial strategy. Public consultation would take place and would be on the website and in leaflets and this year there would be specific consultation on the list of potential capital schemes in the capital programme which represented a real opportunity for residents to help shape the future of Cheltenham. He informed that an open forum on the budget would be held on January 15 2015 at 7pm in the Council Chamber and all were invited to attend.

The Leader added his thanks to all who had been involved in the process. He noted that in previous years consultation had been low as no particularly significant changes had been proposed. This year however there was an exciting opportunity for residents to express their views on the serious projects detailed in the proposed capital programme.

RESOLVED THAT

1.    The interim budget proposals were approved for consultation including a proposed council tax for the services provided by Cheltenham Borough Council of £187.12 for the year 2015/16 (a 0% increase based on a Band D property).

2.    The growth proposals, including one off initiatives at Appendix 3, be approved for consultation.

3.    The proposed  ...  view the full minutes text for item 5.

Report of the Cabinet Member Finance

The Cabinet Member Finance introduced the report which summarised the Housing Revenue Account revised forecast for 2014/15 and the Cabinet’s interim budget proposals for 2015/16. He made the following points :

·         there had been an increase in the surplus for the year of £58k compared to the original estimate and this was despite an increase in repair and maintenance costs.

·         Expenditure of £4.5 million to enhance capital expenditure on existing stock

·         Investment of £6.7 million in property improvements and major works

·         £400 k invested in services for tenants including the vulnerable and those impacted by welfare reform

·         Healthy reserves of £2 million

·         £188k income had been generated from the feed in tariff due to the investment in solar panels.

He congratulated CBH on these achievements.

The Cabinet Member Finance reported that rents would be increased in accordance with the Government rent formula meaning a 2.2 % increase and would take affect when a property is re-let.

The Cabinet Member Housing added that tenant satisfaction was high. He made particular reference to the value placed on the additional services and support provided by CBH with regard to welfare reform. He paid tribute to the CBH new build programme and the significant investment in housing stock. CBH had undertaken its own consultation with tenants and these comments had been taken into consideration.

RESOLVED THAT

1.    The revised HRA forecast for 2014/15 be noted

2.    The interim HRA budget proposals for 2015/16 be approved for consultation including a proposed rent increase of 2.2% and increases in other rents and charges as detailed at Appendix 5.

3.    The rent for all properties be converted to formula rent on re-letting.

4.    The proposed HRA capital programme for 2015/16 be approved as shown at Appendix 3.

5.    The transfer of £2m to an earmarked revenue reserve be approved to finance future new build in the HRA.

6.    Authority be delegated to the Director of Resources, in consultation
with the Cabinet Member for Finance, to determine and approve any additional material that may be needed to support the presentation of the interim budget proposals for consultation.

7.    Consultation responses be sought by 29th January 2015.

Report of the Leader

The Leader of the Council introduced the report which summarised the progress which had been made on the 2020 Vision for Joint Working since Cabinet had received a report in June 2014. He explained that due to cuts in the Council’s core funding from central Government which were expected to continue beyond the next election, there was an ongoing need to find savings. The Council had been very proactive to date in responding to the challenge of reduced funding and had been successful in delivering savings and additional income from its approach to commissioning of services including sharing services with partner councils. It was now being proposed to progress the partnership with the GO councils. The Leader reported that the consultants Activist had provided a detailed report on the options on how the project should progress and there were some initial recommendations which required further work. A further report would be considered in September 2015 in terms of any recommendations for future governance arrangements of the partnership venture and which services would be included.

The Leader also reported that the Council was undertaking some work with regard to alternative options. This work would be concluded in the New Year and would be taken on board as part of the Vision 2020 process.

He also added that the Vision 2020 work had attracted £3.8 m of Government funding which had been received in 3 tranches. This funding would facilitate further work which was required.

The Leader reported that in the meantime various issues had been raised for consideration including the importance of democratic input from members and scrutiny and which services would be included. In terms of the latter it was important to instigate the commissioning process not on the basis of the savings which could be generated but in terms of the distinctiveness of the service for Cheltenham.

The Leader also made reference to the Regulatory and Environmental Services (REST) project which was running alongside the Vision 2020 process.

In summing up he stated that there was no quick fix but hard work and investment was required through the process. He was aware of concerns and unease which had already been expressed but this was the sensible approach at this stage in the process.

Members that spoke in support of the project recognised the savings that GO had achieved above and beyond what had been anticipated and the annual savings of £1.759 m annually from all shared services.  It was now important to carefully consider further the Vision 2020 project so that the council could still provide existing services and it was important to involve and engage with members.

Some Members, whilst acknowledging that in the current financial climate further efficiencies were required and that the delivery of shared services had been successful, believed that it should not be assumed that all shared services would experience the same success. The decision to proceed with Vision 2020 should be taken with full information of the risks and issues involved. It was  ...  view the full minutes text for item 7.

The Cabinet Member Healthy Lifestyles informed members that the balance of £40 k from the Health and Equalities Fund from the County Council was open for the second round of bidding which would close at the end of January.