Agenda item

Cabinet:

1.            Noted the impact of the March 2014 budget on the Council’s financial position.

2.            Noted the background to the Council’s current financial position and how this had impacted on the development of the future budget strategy.

3.            Noted the projected budget gap on which the development of the budget strategy had been based.

4.            Approved and recommended to Council the adoption of the revenue budget strategy statement set out in Appendix C of the report.

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

The current financial strategy, which was designed to address a range of national and local issues, would come to an end during 2014/15.  This strategy had already enabled the Council to address a significant budget gap, resulting from reduced Government funding as well as a range of pressures.  As previous reports to Cabinet had highlighted, there was likely to be a further significant budget gap in the years to come, and although this assessment might depend on the outcome of next year’s General Election, the likelihood was that existing austerity measures would continue.  The sheer scale of this gap meant that it was essential for a new strategy to be put into place as early as practicable.

The report before Members set out relevant background from the current strategy, together with an update on national developments including the March Budget.  It also included background information on funding for local authorities and the overall scale of the Council’s budget, as context to the development of a new budget strategy.  Members were informed that proposals for the Council’s future strategy were set out in the accompanying report and these would be referred initially to a joint meeting of Overview & Scrutiny Committees before formal consultation with the public.

Cabinet was reminded that whilst accepting that any forecasts that ran to the end of the current decade were open to change, the need for the development of a strategy was quite clear.  The report provided Cabinet with background information on the current financial position as a precursor to setting out the Administration’s proposed budget strategy.

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 the background to the Council’s financial position and the initial budget gap projection, as a precursor to the development of a long term budget strategy.  The report was intended to ensure that Cabinet was appropriately aware of the context in which that strategy had been developed.

Alternative Options Considered

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

Cabinet:

Noted:

1.            The impact of the March 2014 budget on the Council’s financial position.

2.            The background to the Council’s current financial position and how this had impacted on the development of the future budget strategy.

3.            The projected budget gap on which the development of the budget strategy had been based.

4.            Approved and recommended to Council the adoption of the revenue budget strategy statement set out in Appendix C to the Report.