Decision details

(Minute 123)

The report of the Assistant Director Finance was submitted providing a strategic overview of the budgetary position for the 2013/14 financial year and beyond, including an indication of the likely level of available resources, the known demand for resources and the proposals to ensure that a balanced budget is achieved.

It was anticipated that the Local Government Finance Settlement setting out the revenue funding for next year would not be announced until 20 December 2012. The Assistant Director Finance reported that the Medium Term Financial Strategy was based on the best estimate of the changes using external advice and early data from the Government. He reported on the Local Government Resource Review including the localisation of business rates and the potential for pooling arrangements.  He informed members that a proposal for a Devonwide Pool had been signed off by all eight Devon District Councils, Plymouth and Torbay Unitaries and the Councils had been working together to agree governance arrangements.  He also reported on the likely impact of welfare reform including localising support for Council Tax.

Executive noted that the budget strategy for next year assumed a 2% increase in Council tax which would raise an extra £96,000. One member expressed disappointment that the Council was not proposing to freeze Council Tax for a further year. In supporting the proposed increase, other members noted this equated to an increase of approximately five pence per week for an average Band C property. The Council had frozen its Council Tax for the last two years and it still remained one of the lowest in the country. 

Members noted two alternative options for the future use of New Homes Bonus and the opportunity to use the funding to deliver the proposed new swimming pool scheme and other major infrastructure projects. One member expressed opposition to the proposal to set a maximum level of £250,000 per annum for funding community projects, in place of the 30% of New Homes Bonus funding previously allocated.

Members noted the Council’s previous decision not to use any of its New Homes Bonus allocation to fund any of its revenue budget services but were aware of the potential to use part of the funding to meet some of the additional revenue costs arising from new housing development, such as refuse collection and cleansing.  

Executive noted the additional spending pressures on the Council and identified revenue savings and other budgetary reductions. They congratulated staff on the efficiency savings achieved so far. 

Executive recommended to Council that:

(1)     the contents of the report are noted and the proposals to establish a balanced revenue budget and capital programme are approved;

(2)     the revised allocation of New Homes Bonus funding as set out in 5.3 of the report is approved; and

(3)     a final decision on whether or not to join a Devonwide Business Rates Pool is delegated to the Council’s Section 151 Officer (Assistant Director Finance) in consultation with the Leader.

(In accordance with Standing Order 43, Councillor Fullam requested that his name be recorded as having voted against the recommendation and Councillor Mrs Henson requested that her name be recorded as having abstained from the vote.)