Agenda, decisions and minutes

None.

The minutes of the meeting of Cabinet held on 15 December 2010 were agreed and signed by the Chair.

Mr Rumsey on behalf of the Pensioners Forum and the Northampton Borough Health Forum spoke in respect of item 6- Council Wide Draft Budget 2011/12- 2013/14 and requested that the Council retain its support for both Fora. He hoped that the Pensioners Forum could continue to work more closely with the Council. The Chair commented that there were no proposals in the draft budget documents that would affect either Forum.

Dr Ron Mendel on behalf of Northampton Trades Union Council commented in respect of item 6- Council Wide Draft Budget 2011/12- 2013/14 and the process of setting the budget. He noted that the report referred to a continued dialogue: he hoped that the Council would consult as widely as possible. He suggested that lessons should be learnt from the County Council’s experience that people did not understand their proposals as they had not been clearly stated. He referred to references in the Council’s draft budget to “restructurings” and “reorganisations” which he believed should be more explicit including giving an estimate of any redundancies. He believed that consultation should close the loop in the sense that any counter proposals should be responded to. He suggested that as the current economic situation was exceptional that early discussions should be held with the Trades Unions as they might have ideas that would help the Council. The Chair commented that he concurred with the comments made about consultation: corporate priorities had already been discussed with the public from September 2010 onwards and this would continue. Dr Mendel queried whether the 217 responses were representative. The Chair commented that this was relatively a good response but agreed that more responses would be preferable.     

None.

B Report of Director of Finance and Support

Cabinet approved the Medium Term Financial Strategy 2011-14 as set out in appendix A.

Cabinet agreed that the Medium Term Financial Strategy be used as a guide to financial planning for the 2011/12 and medium term budgets.

Councillor Mildren observed that it was difficult to plan ahead in the current circumstances. He noted on page 13 of the Appendix the impact on car park usage and the current situation in respect of concessionary fares and the effect on the minimum revenue provision on the budget set out on page 14.

Councillor Clarke commented that some budgetary proposals did not appear to be reflected in the Medium Term Financial Strategy such as the market testing of Environmental Services, the creation of the Leisure Trust and the reduction in car park income. These should be reflected before budget setting.

Councillor Perkins, as the relevant Portfolio Holder, submitted a report that sought approval to a Medium Term Financial Strategy for 2011 to 2014. The strategy underpinned the General Fund Revenue, Capital and HRA budgets and had been set against the Government’s Comprehensive Spending Review and the consequent reduction in funding to the Council over the next two years. Prior to 2007 the Council had been categorised as one of the worst performing Council’s and the Administration had been determined to improve the situation for the Council Tax Payer. This strategy would ensure that resources were allocated in line with corporate priorities and that the best way of delivering services would be investigated. The Council would work with the private, public and voluntary sectors. He referred to the Council Change Programme. A three year balanced budget would be presented alongside the Medium Term Financial Strategy. The risk to the Council had been minimised and adequate reserves planned for. Growth would only be supported in priority areas that also would provide value for money. Where funds were available they would be invested in the money markets and the Council’s property portfolio in line with the Asset Management Strategy. The Council’s expenditure would reduce by 28% over four years; this reduction being front loaded by a reduction of 14.5% in 2011/12. In February 2010 a budget gap of £5.2m had been forecast and ways had been found to close that gap. In respect of the HRA, the issues were deep rooted which the Government had recognised; details were now awaited as to how the HRA might be bought out and the level of debt that the Council might inherit. There was also the issue of Right to Buy monies going back to Government. In respect of the Capital Strategy a three year rolling programme had been provided for with funding to come from, primarily, grants and capital receipts.

Councillor B. Markham expressed his thanks to the Portfolio Holder and the Officers in achieving the Strategy.

Councillor Perkins commented that in respect of Car Park income no increases had been built into the Strategy; that in terms of the Minimum Revenue Provision there was now a requirement to write off assets over their economic life. Provision for this was included in the General Fund budget. and in respect of works to the Grosvenor/ Greyfriars Car Park it was anticipated that usage of the other  ...  view the full minutes text for item 5.

B Report of Director of Finance and Support

1.      Cabinet’s General fund draft budget proposals for 2010/11 and indicative budgets for 2011/12, and 2012/13 as summarised in Annex A and B was approved for public consultation.

2.      Cabinet agreed that the proposed council tax freeze for 2011/12 be approved for public consultation.

3.      Cabinet’s draft capital programme and financing as detailed in annexes F1, F2, and G, was approved for public consultation

4.      Cabinet approved the draft Housing Revenue Account (HRA) budget excluding charges, subsidy and rents for public consultation.

5.      Cabinet agreed that the draft Capital Strategy at appendix H be approved for consultation.

6.      Cabinet agreed that the consultation leaflet be delegated to the Assistant Chief Executive in consultation with the Leader and Portfolio Holder for Finance for approval.

7.      Cabinet agreed that the Chief Executive and Management Board, in consultation with the relevant portfolio holders, undertake the preparatory work in relation to the savings and efficiencies built into the draft budget proposals, subject to any actions being rescinded should any budget options not be approved by 23 February 2011 Council. 

8. Cabinet noted that the Council’s response to the formula grant settlement would be prepared by the Director of Finance and Support in consultation with the Chief Executive, the Portfolio Holder for Finance and Assets and The Leader of the Council.

Councillor Mildren observed that Council would have more information about fees and charges and savings. He referred to Annex B and made the assumption that Planning would stand alone; in respect of Annex C noted that the Sheltered Housing Review assumed savings of £180,000 before that review had started; and that in respect of Annex D1 noted that £5.5m was assumed for the buy out of Stagecoach from the Bus Station without knowing if this funding would be forthcoming (what would the affect be on the Council’s budget be if it had to be found from within the Council’s resources?).

Councillor Clarke commented that he was incredulous that the Council had spent the previous three years saying that the Government was underfunding it, but this year was saying that the Government was right to do so. The Council appeared to be accepting the situation in respect of the Formula Grant without fighting back. The Council could challenge it. He queried how the Council could assume savings of £1.6m from the contracting out of Environmental services before tenders had been evaluated; and similarly assuming savings before the sheltered housing review had started. He felt that the figures set out were akin to a “wish list” and that the 217 public responses were suspect. The public appeared to want less events and more street cleansing, the opposite of the Administration’s policy. He felt it would be difficult for the Cabinet to put together a budget that would gain support and felt that there should be more honesty about the “ifs and buts”.

Councillor Glynane welcomed the funding for Delapre Abbey and queried why Cabinet was proposing to withdraw funding from CAN and how these services would be provided. He also asked for an explanation as to how the proposals for savings in the Stray Dogs service would work. He compared the Council’s position with that of the County Council who had a £15m black hole without any idea as to how it would be dealt with. He asked if this could have an impact on the Council’s budget.

Councillor Mason commented that this budget was difficult especially with the front loading and congratulated the Officers for their work and in clearly explaining how it would be implemented. She noted concerns about the Environment services market testing, Leisure Trust, sheltered housing review and other services in respect of their impact on staff, especially the need for any compulsory redundancies and any numbers that this might relate to. She asked how services would be monitored if they were outsourced and how much working would there be with the 3^rd Sector? She felt that funding the removal of the Delapre bunding and funding for skateboarding at this time seemed inappropriate. She observed that the public consultation seemed limited but that it needed to be explained in simple terms. With the increases in petrol prices and rents the public deserved a simple explanation of what would affect them. In answer to a question, Councillor Mason  ...  view the full minutes text for item 6.

B Report of Director of Finance and Support

            Cabinet approved the tax base for 2011/12 at 66,899 Band D equivalent properties and associated parish tax bases within this.

Councillor Perkins, as the relevant Portfolio Holder, submitted a report that set out the calculation of the Council’s Tax Base for the year 2011/12 under the Local Authorities (Calculation of Council Tax Base) (Amendment) (England) Regulations 2003. He noted that there was little change in the Tax Base from 2010/11 and that it was proposed that the non collection rate remain at 2.5%.

The Chair commented that the action taken by the Council in respect of the Single Person Discount had had a significant impact on the Collection Fund.

            RESOLVED: That tax base be approved for 2011/12 at 66,899 Band D equivalent properties and associated parish tax bases within this.

The Chair thanked the Officers for the extraordinary amount of work that had gone into this year’s draft budget and the briefings held for Group Leaders.