Agenda item

Joint report of the Cabinet Member Finance and Community Development and the Director of Resources

Cabinet Member Finance & Community Development highlighted a minor amendment, the deletion of the word ‘consultation’ from the Executive Summary in the report as the consultation had been concluded.  There had not been a large number of responses and he considered that this was due, in part, to the Council Tax freeze and the fact that no substantial cuts were being proposed.  Responses had included questions around why the Governments council tax freeze grant had been accepted.  Consideration had been given to not accepting this grant, but the difference between a 2.5% increase and a 3.5% increase to Council Tax equated to only £80k and a referendum triggered by an increase above 3.5% would cost more than £80k.  Other concerns raised during the consultation related to the proposal to build £250k of the New Homes Bonus (NHB) into the 2012/13 base budget.  It was important to note that the NHB had been based on previous levels, the funding was not ring-fenced and all authorities across Gloucestershire, including the County Council, had done this as a result of current circumstances.  Green Waste had also been a common area of concern and he suggested that a working group should consider the matter further. 

As a direct result of the consultation, the following changes had been made.  In response to a number of concerns, there would be a one off transitional support payment of £5k to the Arts Council.  The Citizens Advice Bureau had lost the Single Advice Contract in October 2011 and as a consequence this threatened its future in Cheltenham.  In acknowledgement of the wide ranging advice offered by the Citizens Advice Bureau, in times when more people sought such advice, it was agreed that two £30k payments of transitional support would be made, but this would be subject to development of a suitable business case.

Cabinet Member Built Environment felt that the 2012/13 budget was an interesting one.  On the face of it the proposals were inoffensive, a Council Tax freeze, a freeze on off road parking charges, etc, but it was in fact the result of a large number of efficiency savings and it should be considered a success story.  As Members were aware, there would be no grant from the Government next year and it would be an effort to keep Council Tax down, but Members acknowledged that people were struggling and therefore efforts would be doubled.  He expressed his disappointment that over the last 2 years the County Council had chosen to increase the cost of resident permits by 29% and business parking charges by 140%.

Planned maintenance had been a cause for concern for the Environment Overview & Scrutiny Committee and he was hopeful that Members would be reassured upon seeing the programme for next year, with a budget of £1,000,050, which compared favourably to a time before the national financial crisis.  He felt strongly that maintenance and reinvestment into Council assets was crucial and importantly, what the public expected.

Cabinet Member Corporate Services felt the approach to the 2012/13 budget had been forward looking one, achieving longer term savings.  He recognised the efforts of staff who had changed the way they worked but this was not to underestimate the extra work and commitment this had required.  Trade Unions recognised the position of the Council and worked to help bring about the best solution. 

The Leader endorsed what had been said by his Cabinet colleagues.  The Council had been in the advantageous position of knowing what the 2012/13 settlement would be last year but it was as yet unknown what this would be next year.  Representations had been made urging that the final settlement notice be provided as soon as possible, given that next year the process would be more complicated.  .

Upon a vote it was unanimously

RESOLVED that it be recommended to Council that;

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

2. The final budget proposals 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 be approved.

4. The savings / additional income at Appendix 4 be approved.

5. The reserve re-alignments at Appendix 5, as outlined in section 9 be approved.

6. The proposed capital programme at Appendix 6, as outlined in Section 10 be approved.

7. The updated Medium Term Financial Strategy at Appendix 7 including the impact of the ‘bridging the gap’ programme on the forecast budget gap be noted.

8. The proposed Property Maintenance programme at Appendix 8, as outlined in Section 11 be approved.

9. A level of supplementary estimate of £100,000 for 2011/12 as outlined in section 14 be approved.