Issue - meetings

Report to follow. 

Background:

This report presented the Council’s draft revenue budget for 2013/2014.  In accordance with the Constitution, Cabinet was required to develop initial budget proposals approximately three months before finalising the budget and setting council tax levels at the end of February 2013.

The draft budget was based on the principles contained in the Medium Term Financial Plan 2013/2016 approved by Cabinet in October 2012 and reflected the formula grant assumptions for 2013/2014 announced as part of the consultation on the Resource Review this year.

It was reported that the initial budget proposals showed a current forecast budget gap of £11.950 million, which was significantly greater than predicted in the Medium Term Financial Plan. The report set out details of the recent funding announcements; this included the £2 million lost revenue from Council Tax associated with the ‘freeze’ announcement, the additional £2 million lost in delivering additional resources for 2 year olds through the Dedicated Schools Grant and the £7 million top-slice of formula grant for Local Authority Central Spend Equivalent Grant (LACSEG).

It was noted that the Council would not know the definitive position in regard to Government support until the final settlement in January 2013, although the provisional settlement due in late 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 2013/2014 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 2013/2014 Housing Revenue Account budget.

It was noted that Diversity Impact Assessments would be undertaken and reported to Members as part of the budget and service planning process as the impact of the financial settlement on Council services became clearer.

The Cabinet accepted this report as urgent to facilitate the budget consultation process in accordance wit the timescales in the Constitution.

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 12 February 2013 and formal council tax setting on 21 February 2013.