Agenda item

This report sets out the Cabinet’s proposals for the Council’s budget for 2012/13. It also sets out the Executive Director of Finance and Corporate Governance’s budget projections to 2014/15 as required by the Local Government Act 2003. Finally, it provides details of the changes to the 2012/13 revenue estimates as they relate to this portfolio.

The Revenue Budget and Council Tax 2012/13 report will be considered by Cabinet on 30^th January 2012 and Council on 29thFebruary 2012.

Members gave consideration to the Cabinet’s proposals for the Council’s budget and Council Tax for 2012/13, budget projections to 2014/15 and the changes to the 2012/13 revenue estimates as they related to the new Transport and Technical Services (formerly Environment Services) and the Environment, Leisure and Residents Services departments.

Members received details of the Formula Grant award from Government, budget assumptions, growth and savings proposals, risks, balances and earmarked reserves. It was noted that there would be a £6.4m reduction in funding from Government by way of Formula Grant and core revenue grants. Some £57m of savings had been identified in the three year period to 2014/15 although there remained a funding gap of nearly £9m in the final year. The Council debt was forecast to be reduced to £108m from a peak of £176m in 2004. A reduction of 3.75% in Council Tax levels would see the Band D charge brought down to £782 against a London average of £1,015.

Growth and savings proposals at departmental level were examined in detail. Members were informed that savings of £5.55m were forecast in Transport and Technical Services budgets, principally due to more efficient and increased enforcement of traffic restrictions. Growth would be restricted to £172,000 as a consequence of new flood management responsibilities. The net budget for the ELRS department was unchanged from 2011/12 at £35.5m with additional costs of waste disposal and internal recharges offset by commercialisation and income generation activity, staffing productivity savings, the reconfiguration and rationalisation of services and Tri Borough related efficiencies.

Members took the opportunity to enquire about the extent and assurance of tri borough savings. It was noted that some £3.4m of savings were currently attributable to the integration of services with scope for more to be identified in future years. A robust challenge process provided confidence in the savings earmarked for delivery in 2012/13 although it was recognised that further work was required to firm up the benefits in subsequent years.

In considering the levels of fees and charges Members debated whether the increased fees for sports pitches was likely to effect participation levels and the viability of local clubs. It was noted that the levels of charges had been benchmarked against neighbouring boroughs and demand for the pitches was high. It was suggested that there had been no reduction in participation rates in the borough in recent years. The Committee agreed to investigate trends in this respect in more detail at a future meeting. Cemeteries and library charges were currently the subject of a full review process and would remain at 2011/12 levels until its conclusion, at which point the revised proposals would be presented to Cabinet.

Issues in respect of a variety of other service areas were raised by Members including the effect of mild winter weather on the highways maintenance budget, the introduction of cashless parking facilities later in the year, the roll out of additional pay points around the borough upon the closure of the H&F Direct payments office and the reasons for the prioritisation of the mutualisation of school traded services over other Council services.

RESOLVED that –

a report on levels of participation in sport and utilisation of sports facilities in the borough be presented to a future meeting.