Agenda item

(Report of the Director of Corporate Resources – To be introduced by the Cabinet Member for Finance and Carbon Reduction): To consider and agree the proposed budget package for 2012/13 and later years and the Council Tax for 2012/13.

REPORT TO FOLLOW

Cabinet received a report that presented the Medium Term Financial Plan (MTFP), which covered the three years to March 2015 and included a revised assessment of the General Fund, Dedicated Schools Grant (DSG), Housing Revenue Account (HRA) and the Capital Programme.

It was clarified that Corporate Resources was not being allocated additional funding for back office functions and that reserves were being ‘held’ by Corporate Resources until they were formally allocated.

The Cabinet Member for Finance and Carbon Reduction advised that details of the ‘One Borough One Future’ proposals would be made public before the end of the Municipal Year.

RESOLVED:

1. That it be recommended to Council that it approve the proposals for the Council’s Revenue Budget 2012/13 and MTFP 2012-2015 as set out in Appendices 1 and 2 of the report.

2. That it be recommended to Council that it approve the General Fund budget requirement for 2012/13 of £278.4m, net of the Dedicated Schools Grant, subject to the decisions of precepting and levying authorities, as set out in Appendix 1 of the report.

3. That it be noted that significant savings will still have to be identified to deliver a balanced budget in 2013/14 and 2014/15.

4. That it be recommended to Council that it approve the Cabinet’s responses to the recommendations of the Overview and Scrutiny Committee on the chosen three themes of the draft revenue proposals agreed at the Cabinet meeting on 4 October 2011 (as set out in paragraphs 7.6 to 7.8 and Appendix 8 of the report).

5. That the summary of consultation responses received to date on the draft revenue proposals, agreed by Cabinet on 4 October 2011 (and set out in paragraphs 7.1 to 7.5 of the report) be noted. 

6. That the latest position with regard to the funding allocations within the Children and Young People’s Dedicated Schools Grant be noted and approved (as set out in paragraph 12 and Appendix 5 of the report).

7. That it be recommended to Council that it approve the housing rent increases (average increase of £6.55pp (7.5%)) (as set out in Appendix 6 of the report).

8. That it be recommended to Council that it approve the tenants’ service charges (as set out in paragraph 5 and Appendix 6 of the report).

9. That it be recommended to Council that it approve the HRA Budget 2012/13 and the MTFP 2012-15 (as set out in paragraph 7 and Appendix 8 of the report).

10. That it be recommended to Council that it approve the Council’s Capital Programme for the period 2012-15 comprising spending and funding of £204.880m (as set out in paragraph 14 and Appendix 7 of the report).

11. That it be recommended to Council that it approve changes in Directorate cash limits as shown in Appendices 1 and 2 of the report.

12. That it be recommended to Council that it approve the additional investment proposals set out in paragraph 9 and summarised in Table 2 at paragraph 10 of the report.

13. That it be recommended to Council that it approve the forecast level of un-earmarked General Fund Reserves at 31 March 2012 of £10.5m and specific and other reserves totalling £50.4m at 31 March 2012 (as set out in Appendix 4a of the report).

14. That it be noted that the report would be considered by Council on 28 February 2012 in order inform the Council’s final decisions with regard to the Budget for 2012/13 and Council Tax for 2012/13.