Agenda item

To receive the report of the Cabinet Member for Performance and Resources concerning the Money Plan 2016-21 and Budget Proposals for 2016-17.

RESOLVED TO RECOMMEND TO COUNCIL:

1.    That the proposals for the 2016/17 budget included in this report be approved.

2.    That the implementation of the target budget reductions set in the Money plan 2016/2021 be approved.

3.    That it be noted that consultation has been undertaken on budget savings proposals to achieve the level of savings required in 2016/17.

An amended version of the report had been circulated which reflected details of the final Local Government Finance Settlement for 2016/17 that had been announced by the Secretary of State on Monday 8 January.

Cabinet considered the amended report of the Cabinet Member for Performance and Resources which set out proposals for the Council’s Money plan 2016 -21 and budget proposals for 2016/17.

Councillor Norman (Cabinet Member for Performance and Resources) highlighted key areas of the report including:-

·         Section 4 which set out the objectives of the Money Plan.

·         Section 5 which provided details of the Local Government Finance Environment.

He drew Cabinet’s attention to the Government’s confirmation of transitional relief for 2016/17 and 2017/18 (worth £10,000 per annum) and to a change to the Council Tax increase to whichever was the greater of a 2 per cent increase or a flat £5 increase.  

He advised that failure to implement the increase would result in the Council falling below the Government’s assumptions regarding locally raised income. Should Council Tax not be increased by the suggested £5 the Council would need to identify a further £500,000 of savings.

The proposed increase would generate additional income of £60,000 per annum which would be placed in reserves to offset any identified savings not achieved the year.

He outlined the new core spending measure and noted that by the end of this parliament it was intended that all government grant would be replaced by local retention of business rates.

He advised that it was intended that the Council would continue to be a member of the reformed Gloucestershire Business Rates Pool.

He drew Cabinet’s attention to the cost pressures totally £942,000 detailed at Appendix 2 of the report and the savings identified at Appendix 3.

In conclusion, he thanked the residents of the City who helped the Council achieve its highest ever return in respect of community involvement by either completing our on-line or hard copy surveys.

Councillor Organ (Cabinet Member for Housing and Planning) thanked the team who had prepared the report which he believed would provide a clear way forward for the Council.

Councillor Noakes (Cabinet Member for Culture and Leisure) echoed the thanks to Councillor Norman and the finance team. She believed that City residents would understand the need for a £5 increase in the City portion of Council Tax.

Councillor Norman advised Councillor Porter (Cabinet Member for Environment) was advised that the Council would have the opportunity to agree to a four year settlement by October but he could not recommend agreement until further details had been received.

RESOLVED TO RECOMMEND TO COUNCIL:

1.    That the proposals for the 2016/17 budget included in this report be approved.

2.    That the implementation of the target budget reductions set in the Money plan 2016/2021 be approved.

3.    That it be noted that consultation has been undertaken on budget savings proposals to achieve the level of savings required in 2016/17.