Agenda item

Councillor Roger Ramsey, Cabinet Member for Value, introduced the report.

Over the course of the previous two years, the Council had agreed a package of savings to mitigate the impact of very significant cuts in central government funding to local authorities.

Government plans for radical changes to a number of areas had been announced over this period, with more detail gradually emerging. These changes would fundamentally alter the way in which local authorities were to be funded.  The report updated Cabinet on a number of developments in relation to the following changes.

·        Localisation of business rates

·        Localisation of Council Tax support

·        The Social Fund Replacement Scheme

·        School Funding Reform

·        Academies

·        Public Health Transfer

·        Local Government Pension Scheme.

The report also set out the position in the current financial year, and a number of other relevant issues, as these need to be taken into account in developing the detailed budget for 2013/14.

Reasons for the decision:

It was essential that the Council’s financial strategy took due account of Government plans, and any other material factors where these were likely to have an impact on the Council’s financial position.  The report provided an update to Cabinet on issues relevant to the budget setting process.

Other options considered:

None.  The Constitution required the submission and consideration of the report as part of the Council’s budget-setting process.

Cabinet AGREED:

1.                  To note the current position with developments relating to the funding of local authorities and other related changes.

2.                  To note the Government announcement relating to a further extension to the Council Tax freeze grant and a change in the referendum level, as set out in Section 2.9 of the report.

3.                  To note that the budget strategy statements for the revenue and capital budgets, along with the procurement strategy, would be presented for Cabinet’s approval at a future meeting.

4.                  To approve the corporate charging policy, as set out in Appendix A of the report.

5.                  To approve the proposed standard rise in fees & charges for 2013/14 as 2%, subject to any exceptions, as set out in Section 5.9 of the report.

6.         To note the position in the current financial year, as set out in Section 3 of the report.