Issue - meetings

Note – Members are asked to bring their copy of the Executive agenda to the meeting.

Council approved an amendment to recommendation (F) that there be a 1% cut in council tax for 2013/14.

RESOLVED - that (A) the comments and proposals of the joint meeting of Scrutiny Committees of 15 January 2013, be received;

(B)   the probable outturn for 2012/13 be approved and it be agreed that any variation at outturn showing an improved position against the under spending now reported, be put to the cost of change reserve;

(C)   additional earmarked reserves, as now detailed, be approved;

(D)   the revenue budget for 2013/14, as now detailed, be approved;

(E)   the Medium Term Financial Plan to 2016/17, as now submitted, be approved; and

(F)   there be a 1% cut in council tax in 2013/14 and a zero increase projected for 2014/15.

The Executive Member for Finance submitted a report recommending the revenue budget for 2013/14.  The joint meeting of Scrutiny Committees, at their meeting held on 15 January 2013, had supported the proposals now detailed.

The Executive Member referred to further changes that had been made to the Medium Term Financial Plan (MTFP) since the joint meeting of Scrutiny Committees.  These were detailed at paragraph 2.11 of the report now submitted.  He detailed amendments to the budget summary at paragraph 2.21 of the report relating to Efficiency savings and the Planning contingency.  He also reminded the Executive that the figures would need further amending to take account of the proposal on Grants to Voluntary Bodies agreed earlier (Minute 578 refers).

In respect of earmarked Reserves, the Executive Member made three specific proposals:

·        the projected £165k underspend on staff turnover be earmarked to the Cost of Change reserve;

·        any underspend on the New Homes Bonus (NHB) Priority spend be earmarked into a new and separate NHB reserve; and

·        the projected £300k underspend on Recycling be earmarked into a new and separate Recycling reserve for potential capital and/or revenue spend on improvements to the service in 2013/14.

In response to a question by Councillor T Page on the use of reserves to meet the funding gap on council tax support, the Leader reminded Members of the need to be mindful that the Council’s policy on this impacted on Hertfordshire County Council’s funding as well.  The Executive Member for Finance added that the Council had sought to spread the burden as widely as possible.

The Executive supported the proposals as now detailed.

RECOMMENDED - that (A) the comments and proposals of the joint meeting of Scrutiny Committees of 15 January 2013, be received;

(B)      the probable outturn for 2012/13 be approved and it be agreed that any variation at outturn showing an improved position against the under spending now reported, be put to the cost of change reserve;

(C)      additional earmarked reserves, as now detailed, be approved;

(D)      the revenue budget for 2013/14, as now detailed, be approved;

(E)      the Medium Term Financial Plan to 2016/17, as now submitted, be approved; and

(F)       there to be no increase in council tax for 2013/14 and 2014/15.

The Executive Member for Finance submitted a report recommending the consolidated budget for 2013/14 and the 2016/17 Medium Term Financial Plan.  The Executive Member invited the comments of the joint meeting of Scrutiny Committees.

The Chief Executive and Director of Customer and Community Services apologised to Members for not getting the report out earlier.  Members were advised that the grant information had been late arriving from central government. 

The Director of Finance and Support Services advised that regular updates were still being sent to Officers, with the latest information arriving just prior to this meeting.  The Director reminded Members that this information was central to the Council’s budget setting process for 2013/14 and for future years.  The finance settlement from central government was still provisional and it was not clear yet when the settlement would be confirmed.

Members were referred to paragraphs 1.1 to 1.8 for the background information to the consolidated budget report and the changes to the way the Council would receive its funding.  Members were also referred to page 181 for a detailed breakdown of the financial model used for the Medium Term Financial Strategy.  The Director of Finance and Support Services stated that the Strategy would also be affected by the comprehensive spending review due in early 2013 for 2015/16 onwards.

Officers responded to a number of Members’ queries in respect of welfare reform, cardboard recycling and the impact of the new homes bonus.  Councillors G McAndrew and J Ranger referred to the proportion of the local government grant that would be allocated to East Herts Council.

The Director of Finance and Support Services stated that the formula for the government grant made assumptions in terms of the spending power of East Herts Council, as well as considering the income the Authority was likely to receive from NNDR (business rates).  Members were referred to the line in the budget in respect of the planning contingency fund through to 2016/17.

The Director of Finance and Support Services reminded Members that the Authority was currently benefiting from income due to higher interest rates from previously agreed investment deals but this would not be sustainable as currently available interest rates remained low.  Members were advised that details of the revenue support grant, as well as other changes to the way local government was funded, would appear in the Members Information Bulletin either this week or the week after.

Councillor G McAndrew referred to the importance of economic development in East Herts.  The Chief Executive and Director of Customer and Community Services stated that East Herts was one of the very few Authorities to have such a team for this purpose.

The Director of Finance and Support Services referred Members to Essential Reference Papers ‘C’ and ‘D’ for the information relating to stress testing of the Council’s Medium Term Financial Strategy and the budget consultation that had taken place in 2012.

Councillor J Ranger suggested that the Executive be informed that the joint  ...  view the full minutes text for item 543