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 were announced over this period, with more detail gradually emerging.  These changes would fundamentally alter the way in which local authorities were funded, the details of which had been reported to Cabinet previously.

The report updated Cabinet on recent developments since the report was last considered in November 2012. Updates on the following areas were detailed in the report:

·         Localisation of business rates

·         Localisation of Council Tax support

·         School Funding & Pupil Referral Units

·         Capital funding.

This report also sets out the position in the current financial year, and 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 this as a step towards setting the Council’s budget.

Cabinet AGREED:

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

2.            To approve the revenue and capital strategy statements, as set out in Appendix A of the report, and recommend their adoption to Council.

3.            To note that the general economic climate remains gloomy and this raises the prospect of a lengthy period of austerity with a consequent impact on public sector funding.