Agenda item

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 meeting of Scrutiny Committees welcomed the anticipated detailed information in respect of finalised Government Grant funding.  Councillor Ranger also suggested that the Executive be informed that the joint meeting welcomed the anticipated report detailing the savings identified on page 182 of the report now submitted.  Members agreed to both of these suggestions.

The joint meeting of Scrutiny Committees also decided to inform the Executive that the budget should be approved as detailed in the report now submitted.

RESOLVED – that the Executive be informed that the joint meeting of Scrutiny Committees (A) considered that the Consolidated Budget should be approved as detailed in the report now submitted;

(B)   welcomed the anticipated detailed information in respect of finalised Government Grant funding; and

(C)   welcomed the anticipated report detailing the savings identified on page 182 of the report now submitted.