Issue - decisions

The Cabinet Member for Finance and the Board Director, Resources submitted a joint report setting out (a) the current forecast outturn position of the Council's Revenue Budget as at the end of August 2014, (b) the context for the Council’s Budget for 2015/16 and for the Medium Term Financial Plan, including funding assumptions for 2015/16, (c) initial draft Budget proposals for 2015/16 for consultation with residents and stakeholders, (d) Debt Charges, (e) Council Tax, (f) the Council Tax Support Scheme and Grant, (g) proposed future joint working with parish and town councils, (h) General Reserves, (i) Severance Costs, (j) One-off investment (Children’s Centre Proposals), and (k) District Heating Schemes funding proposals.

Councillor Russell Holland, Cabinet Member for Finance, introduced the report and highlighted the financial challenges that the Council and the country faced and the financial context in which the Borough was operating. He highlighted the joint report’s recommendations. He advised that the Local Government Finance Settlement for 2015/16 would not be known until later in 2014 and therefore the issue of the amount to be held in General Reserves and Council Tax proposals could not be considered at this time. The Council had established a good record of identifying savings early that enabled the Council’s financial position to be strengthened for the next financial year. He wished to continue this approach and to allow as much time as possible for views to be sought on the Budget proposals set out in Appendix 4 to the joint report. He drew particular attention to the operation of the Council Tax Support Scheme and to the decision of the Cabinet earlier in the meeting on Children’s Centres provision.

Councillor Des Moffatt referred to the Council’s Capital programme and the borrowing cost and revenue effect of the Council’s investment in the Whalebridge Car Park. He would welcome the opportunity to speak the Cabinet Member regarding the implications of the proposal to change the level of Fleming Way.

Councillor Bob Wright, Chair of the Scrutiny Committee, referred to the draft Budget proposals in respect of the Change Programme for Learning Disability and what this would mean for service users.

Councillor Brian Mattock, Cabinet Member for Health and Adult Social Care, referred to the successes of Adult Social Care and its partners in keeping spending within budget despite increasing pressures. He advised that the change programmes presented one of the ways this was achieved. He explained the change programme in respect of Learning Disabilities and that Swindon’s spending in this area appeared to exceed the national average. The reasons for this were being examined so that appropriate action could be taken where necessary. He confirmed that every effort was made to keep service users within Swindon and close to friends and family.

Councillor Stan Pajak, Leader of the Minority Group on the Council, noted that the Council’s reserves were currently at a level that was considered to be above the minimum level. He wondered if consideration should be given to using this “additional” reserve to protect key services such as Children’s Centres.

Councillor Holland reiterated that the Council would only be able to get a true understanding of the financial context it would be operating within when the Local Government Finance Settlement was published at the end of 2014. However, the officers estimates of the position had, in the past, proved very reliable and he believed that it was an appropriate time to consult on the draft Budget for 2015/16 and seek to make savings now that would strengthen the Council’s financial position for the beginning of the new Financial Year. 

          Resolved – (1) That the Cabinet notes:-

          (a) That the Council expects to deliver services within the overall cash limit for 2014/15 with a current projected underspend of £26,000.

          (b) The medium term financial assumptions and high-level resourcing plan as set out in Table One to the joint report.

          (c) That the Local Government Finance Settlement for 2015/16 has yet to be published and therefore the funding assumptions in the joint report contain levels of uncertainty.

          (d) The current gap between the assumed funding levels for 2015/16 and the current proposed cost of services, as set out in Table Three of the joint report, and that work is continuing to identify further options to close this gap for consideration by Members once actual funding levels are confirmed and before the Final Budget is recommended to Council.

          (e) That the current draft Budget proposals assume a level of base budget contingency of £0.5m and that the Council will need to take a view on the level of contingency it should hold to support the 2015/16 Budget in February 2015, based on the advice of the Section 151 Officer at that point.

          (f) That severance payments in line with existing policy will be made to those individuals affected by the Budget proposals and that these will include payments to partner and external organisations where the payments will result in on-going savings for the Council.

          (g) That the impact on minority groups has been considered for all savings proposals and a full diversity impact assessment has been undertaken where an impact was perceived.

          (2) That the Council be recommended to agree that the Council Tax Support Scheme adopted by the Council for 2013/14 and 2014/15 should continue unchanged throughout 2015/16.

          (3) That consultation with service users, staff and other stakeholders on the detailed Draft Budget proposals, as set out in Appendix 4 to the joint report, now commence, with feedback to be considered by the Cabinet in advance of proposing the 2015/16 Final Budget to the Council.

          (4) That £133,000 of Council Tax Support Grant be passported from the Borough Council to Swindon’s town and parish councils in 2015/16.

          (5) That joint work continue with those Swindon parish and town councils where both Borough Council and Parish Councillors have a mutual desire to explore the transfer of service responsibilities from the Borough to those local councils; and that the Board Director Resources, in consultation with the Cabinet Members for Finance and Streetsmart, plus relevant ward members, be authorised to agree any resulting transfers and that the Director of Law and Democratic Services be authorised to complete any necessary documentation.

          (6) That the Council’s match-funding contribution to the District Heating projects of £60,000, with a maximum value of £30,000 being drawn from reserves, be approved.

          (7) That, at this stage, the minimum level of General Reserves be maintained at £5m, acknowledging that a decision on the level to be held to support the 2015/16 Budget will be taken later in the year with full knowledge of the details of the Local Government Finance Settlement and with an assessment of financial risks at that time.

          (8) That, further to the decision in Minute 40 concerning the proposed changes to Children’s Centres, the allocation of £194,000 of one-off funding from specific Council reserves to support the proposed changes to Children’s Centres over two years, be approved.

          (9) That officers be authorised to implement, as soon as practicable, those proposals for the 2015/16 Budget that represent efficiency measures, including those affecting staff.

          The reasons for the decision and alternative options are as set out in the report to the meeting.