Agenda item

Cabinet:

1.            Noted the original and currently projected budget gap and the assumptions upon which these had been based, and the risks associated with them.

2.            Agreed the long term financial strategy, covering the period from 2015/16 to 2018/19, set out in the report.

3.            Noted that there was a range of risks and assumptions made as part of the development of the strategy and that updates would be provided to Cabinet should these vary.

4.            Noted that any alternative proposals from Overview & Scrutiny or opposition groups would need to be subject to a robust review before they could be considered for inclusion in the Council’s budget and therefore must be submitted prior to the next meeting of Cabinet on 24^th September in order to be considered for inclusion in public consultation.

5.            Considered the options available for the Local Council Tax Support Scheme and approved Option 1 (as set out in Appendix B of the report) for consultation with the Greater London Authority, members of the public and other interested parties.

6.            Noted that a range of corporate strategies would be impacted by the budget strategy and these would need to be updated and approved accordingly.

7.            Reviewed the initial proposal to maintain a core capital programme of around £4m a year subject to a detailed review of available receipts.

8.            Issued the approved financial strategy and proposed areas for budget reduction to Overview and Scrutiny in order to initiate appropriate consultation.

9.            Agreed to receive a further report in late September where comments from Overview and Scrutiny would be considered prior to agreeing a final list of proposals for formal consultation with the local community, stakeholders, other interested groups, staff and unions.

10.         Noted the advice of the Section 151 Officer in setting a robust budget.

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

Cabinet was informed that the report set out the Council’s long term financial strategy to manage the implications of funding reductions and cost pressures over the next four years.

It contained specific proposals to bridge the funding gap for the next two years, with further proposals that would move the Authority towards a balanced four-year budget.

It described how the Council had developed these proposals, focusing first on organisational costs and new ways of managing the Authority; and then on preserving as many as possible of the most valued local services, and services which supported people in need within the community.

Additionally and - where possible - services would be run in a different and more efficient way in order to keep them available to the public, with more fundamental changes or closures being a last resort, in the absence of other alternatives.

Cabinet was reminded that all proposals would be subject to full and proper consultation, with Councillors, staff, service users and the general public before any final decisions were made.

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 set out proposals for the Council’s budget strategy for the next four years and reflected the expected continued Government approach of reduced levels of funding.  The scale of these meant that consideration of detailed proposals, followed by consultation and implementation at an early stage following the local elections, was essential.

Alternative Options Considered

None.  The Constitution required this as a step towards setting the Council’s budget.

Cabinet:

1.            Noted the original and currently projected budget gap and the assumptions upon which these had been based, and the risks associated with them.

2.            Agreed the long term financial strategy, covering the period from 2015/16 to 2018/19, set out in this report.

3.            Noted that there was a range of risks and assumptions made as part of the development of the above strategy and that updates would be provided to Cabinet should these vary.

4.            Noted that any alternative proposals from Overview & Scrutiny or opposition groups would need to be subject to a robust review before they could be considered for inclusion in the Council’s budget and therefore must be submitted prior to the next meeting of Cabinet on 24^th September in order to be considered for inclusion in public consultation.

5.            Considered the options available for the Local Council Tax Support Scheme and approved Option 1 (as set out in Appendix B to the report) for consultation with the Greater London Authority, members of the public and other interested parties.

6.            Noted that a range of corporate strategies would be impacted by the budget strategy and these would need to be updated and approved accordingly.

7.            Reviewed the initial proposal to maintain a core capital programme of around £4m a year subject to a detailed review of available receipts.

8.            Issued the approved financial strategy and proposed areas for budget reduction to Overview and Scrutiny in order to initiate appropriate consultation.

9.            Agreed to receive a further report in late September where comments from Overview and Scrutiny would be considered prior to agreeing a final list of proposals for formal consultation with the local community, stakeholders, other interested groups, staff and unions.

10.         Noted the advice of the Section 151 Officer in setting a robust budget.