Agenda item

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 capital programme at Appendix 6, as outlined in Section 7 be approved.

4.    Authority be delegated to the Director of Corporate 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.

5.    Consultation responses, including responses to potential wider investment priorities, be sought by 26th January 2015.

6.    It be noted that the Council will remain in the Gloucestershire business rates pool for 2015/16 (para 2.7)