Agenda item

To consider the report of the Head of Treasury Services.

Scrutiny Committee – Resources considered the proposed estimates and capital programme at their meeting on 28 January 2009 and their comments will be reported.

(Report circulated)

Councillor Mrs Brock declared an interest in this item as the owner of a business in Magdalen Road.

The report of the Head of Treasury Services was submitted, seeking approval for the General Fund revenue estimates for 2009/10 and recommending the Band D level of Council Tax for 2009/10. This report also included the proposed Capital Programme for 2009/10 and future years, and a note of the proposals in respect of the Housing Revenue Account.

The Director Corporate Services presented the report and corrected references to the financial year 2008/09 instead of 2009/10 in the text and Appendices. He referred to the key assumptions, the finance settlement, proposed savings and other factors which had contributed to the budget proposals. 

Scrutiny Committee – Resources considered the proposed estimates and capital programme at their meeting on 28 January 2009 and the comments of members were noted. Executive noted that Scrutiny Committee – Resources had requested Executive to take a critical look at increasing the proposed Council tax increase of 2.9% to 4.5% as proposed in the medium term financial plan, to ensure adequate resources for service delivery.

Councillors Mrs Morrish, Henson and Edwards spoke in favour of a higher level of increase than the 2.9% proposed by the Administration, citing the difficult financial situation facing the Council at the present time and specifically the impact of the concessionary fares scheme. Whilst sympathetic to the desire to keep down the additional financial burden falling on Council taxpayers, Councillor Mrs Morrish stated that neither reduced services nor increased unemployment would be welcomed by citizens.

The Chair explained the rationale behind the increase and referred to “mixed messages” emerging from various sources. The proposed increase of 2.9% was in line with the direction of Central Government to keep Council Tax increases low and was consistent with his own Group’s previously expressed position. He re-stated his wish to assist people facing financial difficulty and commented that 2.9% was nevertheless likely to be above the rate of inflation. He reiterated his desire to work in conjunction with the other Group Leaders outside of the meeting of the Executive to achieve a consensus on the increase and hoped that discussions would continue with a view to achieving this.

Councillor Edwards drew attention to the capital programme allocation for central heating and requested that the replacement of the system at Rennes House would be re-prioritised. The Portfolio Holder Housing and Social Inclusion undertook to look into the possibilities.

Councillor S Brock requested the re-wording of the reference to ceasing funding for the Vibraphonic Festival to be replaced by “Further reduction in Festivals Budget” and this was agreed by Executive.

Executive recommended that:-

(1)     the Council’s overall spending proposals in respect of both its revenue and capital budgets are approved, subject to the amendment with regard to the Festival budget indicated above;

(2)     the Council Tax for each Band be recommended to the Council as set out in section 22.3 of the report, subject to Devon County Council, Devon and Cornwall Police Authority and the Devon and Somerset Fire Authority confirming their Band D levels respectively;

(3)     when the actual Council Tax amounts for Devon County Council, Devon and Cornwall Police Authority, and the Devon and Somerset Fire Authority are set, then the revised council tax levels be submitted to Council on 24 February 2009 for approval; and

(4)     Members note the Statement given by the chief finance officer as required under Section 25 of the Local Government Act 2003.

(In accordance with Standing Order 43, Councillors Mrs Henson and Mrs Morrish requested that their names be recorded as having voted against Recommendation (2) above and Councillor R. Hannaford requested that his name be recorded as having voted for it).

Councillor Mrs Brock declared an interest in this item as the owner of a business in Magdalen Road.

The report of the Head of Treasury Services was submitted, seeking approval for the General Fund revenue estimates for 2009/10 and recommending the Band D level of Council Tax for 2009/10. This report also included the proposed Capital Programme for 2009/10 and future years, and a note of the proposals in respect of the Housing Revenue Account.

The Director Corporate Services presented the report and corrected references to the financial year 2008/09 instead of 2009/10 in the text and Appendices. He referred to the key assumptions, the finance settlement, proposed savings and other factors which had contributed to the budget proposals. 

Scrutiny Committee – Resources considered the proposed estimates and capital programme at their meeting on 28 January 2009 and the comments of members were noted. Executive noted that Scrutiny Committee – Resources had requested Executive to take a critical look at increasing the proposed Council Tax increase of 2.9% to 4.5% as proposed in the medium term financial plan, to ensure adequate resources for service delivery.

Councillors Mrs Morrish, Henson and Edwards spoke in favour of a higher level of increase than the 2.9% proposed by the Administration, citing the difficult financial situation facing the Council at the present time and specifically the impact of the concessionary fares scheme. Whilst sympathetic to the desire to keep down the additional financial burden falling on Council taxpayers, Councillor Mrs Morrish stated that neither reduced services nor increased unemployment would be welcomed by citizens.

The Chair explained the rationale behind the increase and referred to “mixed messages” emerging from various sources. The proposed increase of 2.9% was in line with the direction of Central Government to keep Council Tax increases low and was consistent with his own Group’s previously expressed position. He re-stated his wish to assist people facing financial difficulty and commented that 2.9% was nevertheless likely to be above the rate of inflation. He reiterated his desire to work in conjunction with the other Group Leaders outside of the meeting of the Executive to achieve a consensus on the increase and hoped that discussions would continue with a view to achieving this.

Councillor Edwards drew attention to the Capital Programme allocation for central heating and requested that the replacement of the system at Rennes House would be re-prioritised. The Portfolio Holder Housing and Social Inclusion undertook to look into the possibilities.

Councillor S Brock requested the re-wording of the reference to ceasing funding for the Vibraphonic Festival to be replaced by “Further reduction in Festival Budget” and this was agreed by Executive.

RECOMMENDED that:-

(1)     the Council’s overall spending proposals in respect of both its revenue and capital budgets are approved, subject to the amendment with regard to the Festival budget indicated above;

(2)     the Council Tax for each Band be recommended to the Council as set out in section 22.3 of the report, subject to Devon County Council, Devon and Cornwall Police Authority and the Devon and Somerset Fire Authority confirming their Band D levels respectively;

(3)     when the actual Council Tax amounts for Devon County Council, Devon and Cornwall Police Authority, and the Devon and Somerset Fire Authority are set, then the revised Council Tax levels be submitted to Council on 24 February 2009 for approval; and

(4)     Members note the Statement given by the chief finance officer as required under Section 25 of the Local Government Act 2003.

(In accordance with Standing Order 43, Councillors Mrs Henson and Mrs Morrish requested that their names be recorded as having voted against Recommendation (2) above and Councillor R. Hannaford requested that his name be recorded as having voted for it).

(Report circulated)