Agenda and draft minutes

Members are asked to note that the Chairman of the Finance and Audit Committee will preside over the meeting.

It was noted that the Chairman of the Finance and Audit Committee, Councillor Callow would preside over the meeting.

Members are asked to declare any interests in the items under consideration and in doing so state:

(1) the type of interest concerned; and

(2) the nature of the interest concerned

If any member requires advice on declarations of interests, they are advised to contact the Head of Democratic Governance in advance of the meeting.

There were no declarations of interest on this occasion.

To discuss and undertake consultation with representatives from the Trade Unions regarding the General Fund Revenue Budget 2015/2016.

Attendees will have the opportunity to ask questions and seek clarification from officers regarding the draft Budget.

Specific observations and comments can be made that will be passed to the Executive for consideration at its meeting on 23^rd February 2015.

Note:  Members are requested to bring a copy of the budget papers to the meeting.

Mr Thompson, Director of Resources, commenced his presentation of the budget by advising that some of the suggestions made by the Trade Unions through a series of meetings held throughout the year had been taken on board.

The extent of the required budget savings over the previous four years was reported as £68m with a requirement for further savings of £58m over the next three years.  Mr Thompson explained the extent of the challenges faced in meeting the budget savings since 2010 and that these savings had equated to approximately four times the staffing costs for all back office services.

Mr Thompson reported that a Medium Term Financial Strategy for the next three years had been approved by Executive at its meeting on 19^th January 2015.  He outlined the key principles of the Strategy which included resourcing of services in line with Council priorities, achieving value for money and efficiency savings and the principle of keeping Council Tax levels as low as possible.  The success in securing a significant amount of income through grants was reported.  Another key principle of the Strategy was ensuring that risks were identified and mitigated, for example in ensuring sufficient financial reserves, and maximising prudential borrowing.  Mr Thompson emphasised the Council’s statutory obligation to set a balanced budget.

Mr Thompson went on to report on the increased demand on local services, particularly in relation to Children’s and Adult Services.  He also explained that the key drivers for the budget were the level of Government funding and the localisation of Business Rates.  In relation to Business Rates, he explained that the Council would benefit from large developments such as the Central Business District and The Harbour.  There were however concerns regarding the potential level and impact of successful appeals currently being determined by the Valuation Office as the Council would be responsible for contributing 49% towards the settlements.

Mr Thompson reported on other sources of funding which included the Council Tax Freeze Grant.  He also advised on the impact of the redevelopment of the social housing provision on New Homes Bonus. 

The pressures on the budget in relation to Children’s Services and Adult Services were reported.  Mr Thompson advised on a review of parking services currently taking place in an attempt to balance accessibility and value for tourists and residents whilst optimising yield for the Council.

Mr Thompson went on to report on the significant reduction in Council staff in the last few years and the increasing difficulty to deliver services as a result.  A further reduction of approximately 300 posts was expected in the financial year 2015/2016 and a further estimated reduction of 300 posts in the subsequent two years.  He explained the amount of earmarked reserves required year-on-year to meet redundancy payments and associated pension strain and the potential for other options to be considered beyond the financial year 2015/2016.  This included the option of applying for a Capitalisation Directive for future staff termination costs which, although not a prudent solution, would be  ...  view the full minutes text for item 3.