Issue - meetings

This report sets out the final proposals for the approval of the capital and revenue budgets, rent increases and council tax for 2015/2016 as proposed by Cabinet.

Discussion:

This report presented proposals for the capital and revenue budgets and the Housing Revenue Account (HRA) for 2015/2016.

The Cabinet had considered initial budget proposals on 2 December 2014, which had been developed in accordance with the principles set out in the Medium Term Financial Plan (MTFP) 2014/2018. In accordance with the budget and policy framework rules within the Constitution the Overview and Scrutiny Committees had then considered the Cabinet’s proposals prior to Cabinet’s consideration of the draft budget on 10 February 2015. It was noted that the report had incorporated the implications of the Final Settlement, which had been announced on 3 February 2015.

In setting its budget, the Council was exercising a public function and must therefore comply with the duties in section 149 Equality Act 2010 to have 'due regard' to the matters set out in that section. As such, a Diversity Impact Assessment was attached at Appendix 13 to the report.  This was an overarching report containing a summary of the results of the Diversity Impact Assessments which had been completed for each of the services affected by the proposed budget changes.

Appendix 12 to the report (Fees and Charges) was set out in Supplementary Agenda No.1.

The Deputy Leader and Portfolio Holder for Finance, Councillor Jarrett, supported by the Leader of the Council, Councillor Rodney Chambers OBE, proposed the recommendations in the report with the exceptions of recommendations 22.2 and 22.3 which were revised to reflect the following variations as follows:

Councillor Maple, supported by Councillor Murray, proposed the following amendment:

1. Additional £217,000 to Medway Council employees to fund a living wage to be funded by reducing the Councillor Special Responsibility Allowance budget by £11,000; utilising £90,000 of unallocated DCLG grant funding; utilising an additional £66,000 brought about by utility bill savings and £50,000 additional income from Category Management.

2. Allocate the £800,000 provision to fund a 1% pay increase across all relevant staff.

3. Additional £200,000 to increase apprenticeship incentives offered to local employers to be funded by reducing the South Medway Development Fund by a non-recurring £200,000.

4. Additional £80,000 to retain EU project staff until October  ...  view the full minutes text for item 791

Background:

This report presented proposals for the capital and revenue budgets for 2015/2016.

It was noted that the Cabinet had considered initial budget proposals on 2 December 2014, which had been developed in accordance with the principles set out in the Medium Term Financial Plan 2014/2018. It was noted that considerable effort had been made to achieve a balanced budget without seriously impacting on direct services to the public and that the proposed revenue budget of £318.069 million was based on a Council Tax increase of 1.994%.

The Cabinet report noted that the budget build assumed a nil increase in pay costs for staff, however, a provision of £800,000 had been identified for increases in pay, equivalent to about 1% of the overall paybill cost.

The proposed capital programme for 2015/2016, incorporating existing schemes and anticipated grant allocations, was £53.144 million. An overall summary and a summary by directorate of the proposed capital programme were attached at Appendix 2 to the report.

It was noted that budget proposals had been referred to all the Overview and Scrutiny Committees for consideration. The Overview and Scrutiny Committees’ views were detailed in the report, with the recommendations of the Business Support Overview and Scrutiny Committee set out for Cabinet consideration within an addendum report (Supplementary Agenda No.2).

The summarised Housing Revenue Account was set out in Appendix 6 to the report with the capital component in Appendix 2 to the report.

The schedule of fees and charges was set out in Appendix 7 to the report (Supplementary Agenda No.1).

The report set out the requirements under equality legislation and a Diversity Impact Assessment, that aggregated the impact of reductions in funding to services, was tabled at the meeting.

During discussion, the Deputy Leader and Portfolio Holder for Finance, Councillor Jarrett, made reference to some typographical errors in the report which would be corrected in the report to be submitted to Full Council on 26 February 2015, in relation to funding for highway maintenance and integrated transport (paragraph 5.3.1 and table 9 of the report refers) and the revenue budget gap.