Agenda item

Report of the Cabinet Member Finance and Community Development

The Cabinet Member Finance and Community Development introduced the report which outlined the revised budget 2011/12 and the Interim Budget Proposals 2012/13 for consultation. He proposed an amendment to the third recommendation of the report to read “Approve the growth proposals, including one off initiatives at Appendix 3 and use of the New Homes Bonus as indicated in paragraph 5.3”. Members supported this amendment.

The Cabinet Member informed the meeting that next year’s budget would be balanced without the need for significant cuts. The Government’s offer to pay for a freeze in council tax next year would be taken advantage of. The following items had been built into the base budget :

• the reinstatement of £110 k for the subsidised County Council verges contract
• £20k for maintaining the 8000 highway trees
• Funding for the Taxi marshalls scheme

In addition he reported that parking charges would be frozen for another year, lettings fees for the Town Hall and Pump Room would be frozen for a year, there would be investment in IT infrastructure and capital funding had been allocated from the civic pride reserve to improve town centre infrastructure and paving as requested by the Cheltenham Task Force.

£250 000 of the £583 559 in New Homes Bonus would be used to maintain services by supporting the revenue budget. In addition £50 000 would be allocated to continue support for youth work. £142 000 each would be allocated to the environment improvement and promoting Cheltenham schemes that were established last year.

Actively managing vacancies and staffing levels to minimise the impact of service reviews had resulted in a proposed 4.9 FTE reduction, none of which were compulsory. The Cabinet Member highlighted that times remained uncertain and the Government settlement would be cut by £500 000.

He wished to put on record his thanks to the finance team and the senior leadership team for their contributions in keeping control of the budget.

Members welcomed the draft budget and reiterated their thanks to officers. The Cabinet Member Built Environment referred to the success of the Icelandic bank litigation which was an illustration of the resilience of the council.

The Cabinet Member Corporate Services referred to the way the Council had conducted its business through the work on bridging the gap which had involved every member of staff. The amount of work undertaken over the last two years had ensured a balanced budget and this was to the staff’s credit.

The Leader of the Council said that the balanced budget was a reward for the hard work undertaken over the last few years. It was hoped that a similar situation would be reached next year but he warned about the cut in government funding. He believed that it was appropriate to bring some of the New Homes Bonus into the base budget. The remainder would be earmarked for valuable youth work and supporting the Environmental Improvement Fund and Promoting Cheltenham fund.

The Director Resources clarified that the figure in the second and third bullet points of paragraph 5.3 of the report should read £142k. In addition an amended Appendix 4 had been tabled which contained cosmetic changes.

RESOLVED THAT

1. The revised budget for 2011/12 be noted.

2. The interim budget proposals for consultation including a proposed council tax for the services provided by Cheltenham Borough Council of £187.12 for the year 2012/13 (a 0% increase based on a Band D property) be approved.

3. The growth proposals, including one off initiatives at Appendix 3 and the use of the New Homes Bonus as indicated in paragraph 5.3 be approved.

4. The proposed capital programme at Appendix 6, as outlined in Section 9 be approved.

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

6. Consultation responses be sought by 14^th January 2012.