Agenda item

Joint report of the Cabinet Member Finance and the Director Resources

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 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).