Decision details

The Leader gave a presentation on the Executive’s budget proposals for 2015/16 and the Medium Term Financial Strategy until 2017/18.

He looked back to the start of this Council’s term in 2011 and reminded Members of the aim of freezing Council Tax levels whilst maintaining front line services as the basis underpinning the Budget Strategy.  He referred to the impact of various external factors and the continuing uncertainties in which local authorities operated, with reduced funding from central government.  Council had taken a balanced approach in allocating funds to maintain services, whilst looking to make savings where possible.  He referred to the shared services agenda, where greater resilience had been achieved in the Revenues and Benefits service and huge savings had been achieved in the IT shared service.  Council was investigating such arrangements for other areas, such as anti-fraud and building control.

The Leader referred to the Council’s balanced approach to its Reserves and placed these in context with neighbouring Authorities.  The position would continue to be monitored in the coming year.  He also highlighted the Council’s work in supporting and encouraging businesses in East Herts using New Homes Bonus (NHB) growth investment and working in tandem with the Local Enterprise Partnership.  He expressed thanks to the Economic Development team for their efforts.

The Leader also highlighted Council’s approach to car parks and the introduction of a free 30 minute time band.  The early indications of this support for town centres were showing an increase in footfall.  He also referred to the decrease in vacant shops in both Bishop’s Stortford and Hertford.  The Executive Member for Economic Development would be working with Officers to extend the scheme to Buntingford and Sawbridgeworth.

The Leader outlined some of the successes of the previous term, such as the allocation of NHB funds to parish and town councils and for supporting health and wellbeing initiatives.  He also referred to increased recycling rates, reduced waste going to landfill and increased public satisfaction levels with the waste and recycling service in general.  The Leader gave details of the grants distributed to voluntary organisations, which supported activities such as playschemes, Citizens Advice and Police and Community Safety Officers.

The Leader referred to the ongoing work on the emerging District Plan and the reserves set aside to ensure that the current timetable was not compromised.  Members were reminded of the Local Mortgage Scheme, in which, to date, 24 loan agreements had been signed.  In terms of the capital programme, the Leader highlighted the funds allocated for leisure improvements at Grange Paddocks, Hartham and open spaces in general.

The Leader concluded by stating that Council had exceeded its objectives, with council tax having been reduced by 1% and grants to voluntary organisations and support for businesses having been increased.  He placed on record his thanks to Officers for their efforts in meeting and exceeding these objectives.

The Leader proposed two additional items.  Firstly, that fees and charges for 2015/16 be frozen.  This had been suggested by scrutiny and if approved, would result in a reduction of income by £17k, thus necessitating a similar reduction in the contingency figure.  Secondly, he proposed a 1% reduction in council tax in 2015/16 and a freeze in 2016/17.  This would impact the contingency figures in the MTFP and would require additional savings to be identified for 2017/18 and 2018/19.  The Leader believed that the proposed budget, as now amended, would improve the quality of life of all East Herts residents.

Councillor J Wing responded on behalf of his Group.  He began by thanking the Executive Member for Strategic Planning and Transport for his work and efforts on the District Plan.  Councillor J Wing expressed disappointment that some of the suggestions put forward by his Group in the scrutiny process had not been accepted fully.  He referred to suggestions on leaf clearance and planning enforcement, which would be looked at further.  He believed that removing pre-application fees for charities should be introduced as the lost income would be trivial in the overall scheme of things and would greatly benefit organisations with limited funds.

In respect of increasing resources for leisure provision across the District, Councillor J Wing had been cheered by level of support from Members generally at scrutiny.  However, there had not been any explicit commitment for additional resources.  Finally, he referred to historic budget underspends and had suggested a council tax reduction himself, only to be told by the Executive Member of Finance that the Council could not afford it.  He wondered how this was suddenly affordable.

Councillor M Newman, on behalf of his Group, expressed broad support for the budget proposals and echoed the appreciation given to Officers for their continued support.  He referred to the recent Planning Peer Challenge and questioned its omission from any specific budget proposals.

The Leader responded to this point by reminding Members that the agreed action plan would be developed and costed fully and reassured Members that this would include planning enforcement matters.

In accordance with the provisions of The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken on the budget proposals now detailed, the result being:

FOR:

Councillors D Abbott, M Alexander, D Andrews, P Ballam, E Bedford,

R Beeching, E Buckmaster, S Bull, A Burlton, M Carver, Mrs R Cheswright, H Crofton, G Cutting, L Haysey, Mrs D Hollebon, A Jackson, G Jones,

J Jones, J Mayes, G McAndrew, M McMullen, P Moore, W Mortimer,

M Newman, T Page, P Phillips, M Pope, J Ranger, C Rowley,

S Rutland-Barsby, R Sharma, N Symonds, J Taylor, J Thornton,

A Warman, K Warnell, G Williamson, C Woodward, J Wyllie.

AGAINST:

Councillors J Wing, M Wood.

ABSTENTIONS:

None

For: 39

Against: 2

Abstentions: 0

Council approved the recommendations as now detailed.

RESOLVED – that (A) the comments of the joint meeting of Scrutiny Committees be received;

(B)      the Revised Revenue Estimates for the current financial year 2014/15 as set out in section 4 of the report submitted, including the proposed contributions to and from Reserves as detailed at paragraph 4.3 of the report submitted, be approved;

(C)      the Revenue Budget underspend for 2014/15 be transferred to the Collection Fund Reserve and the New Homes Bonus Priority Spend Reserve as set out in paragraph 4.5.2 of the report submitted;

(D)      the 2015/16 Revenue Budget be approved including:

·                        the new budget growth as set out in section 6 of the report submitted;

·                        the new budget savings as set out in section 6 of the report submitted;

·                        the Contingency Budget as detailed at paragraph 8.3 of the report submitted and now amended to take account of the decision to freeze Fees and Charges and reduce Council Tax by 1% in 2015/16;

·                        the use of Earmarked Reserves as set out at section 9 of the report submitted;

·                        consideration of the advice from the Director of Finance and Support Services on the levels of reserves and robustness of the estimates in setting the budget as required by Section 25 of the Local Government Act 2003 and detailed at section 15 of the report submitted;

(E)      the East Herts element of the Council Tax Bill for 2015/16, is reduced by 1% at the 2014/15 rate, as detailed at section 11 of the report submitted;

(F)       Fees and Charges in 2015/16 be frozen;

(G)      the discounts in charges being proposed for those Private Hire and Hackney Carriages that are able to transport a wheelchair using person whilst s/he remains in the wheelchair, as set out at paragraph 7.6 of the report, be approved;

(H)      the new Capital Programme for the period 2014/15 (Revised) to 2017/18, how the programme will be funded, and the consequential revenue budget implications, as detailed at section 12 of the report, be approved;

(I)        a revised Medium Term Financial Plan covering 2014/15 (Revised) to 2018/19 (as set out at Essential Reference Paper ‘A’ to these Minutes), be approved, to reflect

(i)        the impact of the decisions to freeze Fees and Charges and reduce Council Tax by 1% in 2015/16;

(ii)       the impact on Contingency levels; and

(iii)       the additional savings needing to be identified in 2017/18 and 2018/19; and

(J)       the proposed changes to the Council’s Reserves, as set out in table 10, section 14 of the report submitted, be approved.

(see also Minute 538)