Agenda item

Report of the Cabinet Member for Resources, seeking to set out the latest estimated overall financial position on the General Fund Revenue Budget for 2013/14 to 2015/16 and to outline the main issues that need to be addressed in considering the Cabinet’s budget and council tax proposals to Council on 13 February 2013, attached.

DECISION MADE: (Ref: CAB 12/13 9619)

On consideration of the report of the Cabinet Member forResources, Cabinet agreed the following:

(a)  Note the position on the estimated outturn and revised budget for 2012/13 as set out in paragraphs 21 to 32.

(b)  Note the position on the forecast roll forward budget for 2013/14 as set out in paragraphs 40 to 68.

(c)  Note and approve the arrangements made by the Leader, in accordance with the Local Government Act 2000, for the Cabinet Member for Resources to have responsibility for financial management and budgetary policies and strategies, and that the Cabinet Member for Resources, will in, accordance with the Budget & Policy Framework Rules as set out in the Council’s Constitution, be authorised accordingly to finalise the Executive’s proposals in respect of the Budget for 2013/14, in consultation with the Leader, for submission to Full Council on 13 February 2013

(d)  Recommends that Full Council:

  i.  Notes the Consultation process that was followed as outlined in Appendix 1.

  ii.  Notes the Equality Impact Assessment process that was followed as set out in paragraphs 17 to 20 and that the additional detail in Appendix 2 which will be available prior to the Full Council meeting on 13 February 2012

  iii.  Approves the revised estimate for 2012/13 as set out in Appendix 3.

  iv.  Approve £200,000 in 2012/13 for highway maintenance, to be met from balances which will be replenished by a contribution of £200,000 from regeneration funding from previous years which is no longer required and can now be released to revenue.

  v.  Notes the transfer of funds to the Council under S256 agreements with the NHS Commissioning Board in 2013/14 for £4.0M from the Health transfer funding and for a minimum of £0.6M with NHS Southampton City from the re-ablement / post discharge services as set out in paragraphs 33to 36.

  vi.  Notes that a new ring-fenced grant will be received in 2013/14 to support the Council’s Public Health responsibilities being transferred from the Southampton PCT and that at this stage it has been assumed that this funding will meet the cost of providing the transferred service and therefore will not have any impact on the Council’s total net revenue budget requirement as set out in paragraphs 37 to 39.

  vii.  Notes the position on the forecast roll forward budget for 2013/14 as set out in paragraphs 40 to 68.

  viii.  Notes that the Executive’s proposed budget as set out in this report has taken into account the recommendations of Overview and Scrutiny Management Committee and of Scrutiny Panel A: Welfare Reforms and the amount transferred to the Council for the transition of the Social Fund for 2013/14 and 2014/15 is to be allocated solely for the use of developing local welfare provision.

  ix.  Approves an additional draw from General Fund Balances of up to £0.5M in 2013/14 if required during the year.

  x.  Approves the revenue pressures set out in Appendix 5.

  xi.  Approves the addition to the Leader’s Portfolio of £500,000 in 2013/14 to fund initiatives with the aim of “Getting Our Economy Moving” as set out in paragraph 75.

  xii.  Approves the efficiencies, income and service reductions as set out in Appendix 6.

  xiii.  Approves the General Fund Revenue Budget as set out in Appendix 7, which assumes a council tax increase of 1.9%.

  xiv.  Delegates authority to the Chief Financial Officer to action all budget changes arising from the approved pressures, bids, efficiencies, income and service reductions and incorporate any other approved amendments into the General Fund estimates.

  xv.  Approves a revised minimum balance of £5.5M as recommended by the Chief Financial Officer in line with the policy guidance outlined in paragraphs 99 to 104.

  xvi.  Notes that after taking these items into account, there is an estimated General Fund balance of £5.5M at the end of 2015/16 as detailed in paragraph 102.

  xvii.  Delegates authority to the Chief Financial Officer, in consultation with the Director of Corporate Services, to do anything necessary to give effect to the recommendations in this report.

  xviii.  Sets the Council Tax Requirement for 2013/14 at £70,049,100.

  xix.  Notes the estimates of precepts on the Council Tax collection fund for 2013/14 as set out in Appendix 9

  xx.  Notes the Medium Term Forecast as set out in Appendix 10.

  xxi.  Authorises the Chief Executive and Chief Officers to pursue the development of the options for efficiencies, income and service reductions as set out in Appendix 5 for the financial years 2014/15 and 2015/16 and continue to develop options to close the remaining projected gaps in those years.