Issue - meetings

Background:

This report presented the Council’s draft revenue budget for 2014/2015.  In accordance with the Constitution, Cabinet was required to develop initial budget proposals before finalising the budget and setting council tax levels at the end of February 2014.

The draft budget was based on the principles contained in the Medium Term Financial Plan 2014/2017 approved by Cabinet in October 2013 and reflected the formula grant assumptions for 2014/2015 announced as part of the Local Government Finance Settlement 2014/2015 and 2015/2016 Technical Consultation in July and September.

It was reported that the initial budget proposals showed a current forecast budget gap of £4.812 million which would increase to £17.053 million for 2015/2016.

It was noted that the Council would not know the definitive position in terms of to Government support until the final settlement in January 2014, although the provisional settlement due in December would provide greater certainty.

Budget proposals incorporating pressures were set out within the report and accompanying appendices. In relation to the capital budget proposals for 2014/2015 it was noted that, at this stage, it had been assumed that future investment would be restricted to the existing approved Capital Programme, supplemented by the Council’s expectations in relation to Government grant.

The report also set out details of the main factors and assumptions that would form the basis of the 2014/2015 Housing Revenue Account budget.

Reasons:

It is the responsibility of Cabinet to develop draft budget proposals for consideration by overview and scrutiny committees.  These draft proposals are the first stage of the budget consultation process leading to further discussion by Cabinet on 11 February 2014 and formal council tax setting on 20 February 2014.