Agenda item

Financial Strategy 2013-2018

Meeting of Executive, Tuesday, 12 February 2013 5.00 pm (Item 98.)

Decision:

Following further discussions it was

RESOLVED: i) That, having considered:

a. Expenditure pressures facing the council as set out in the report

b. Impacts of savings proposals set out in Annex 2

c. Medium term financial factors facing the council as outlined in the report

d. Projected levels of reserves as set out in the report

e. Statutory advice from the Director of CBSS

It be

RECOMMENDED: That Council:

i) Approve the budget proposals outlined in the report and set out in detail within the financial strategy, in particular:

a. The net revenue expenditure requirement of £127.778m

b. The revenue growth proposals as outlined in the body of the report

c. The revenue savings proposals as outlined in Annex 2

d. The fees and charges proposals as outlined in Annex 3

e. The Housing Revenue Account budget set out in Annex 4

f. The dedicated schools grant proposals outlined in Annex 5

ii) Note that the effect of approving the income and expenditure proposals included in the recommendations would result in an increase in the City of York element of the council tax of 1.9%.

REASON: To ensure a legally balanced budget is set

Minutes:

[see also Part A minute]

Cabinet considered the financial strategy for the period 2013 to 2018 which included details of the revenue budget proposals for 2013/14 and 2014/15. The strategy delivered a balanced budget over a two year period with savings of £20m and proposed a Council Tax increase of 1.9% in 2013/14.

Members discussed the key issues in the proposals, as outlined in paragraph 2 of the report. It was agreed that a two year budget better enabled longer term investments and savings to be developed and implemented, providing a stable, sustainable financial basis for the delivery of services.

Members commented on the context in which decisions on the budget were being made. Factors such as the significant changes in financial regulations, the increased pressures on demand for adult social care, formula grant reductions and reductions in other grant funding had resulted in very difficult decisions having to be taken. The budget proposals had sought to protect the most vulnerable, including the elderly, Looked After Children, and families on low income. The proposals also sought to promote growth in the local economy and hence measures such as the investment in the city centre, in the park and ride and in the market. The council would continue to work with partners and with the voluntary sector in an effort to mitigate the impact of the cuts.

Referring to issues that had been raised under agenda item 4 regarding proposed expenditure on the expansion of the traveller site at Osbaldwick, Members stated that the council had statutory responsibilities in respect of this provision and was also seeking to ensure that all residents of the city were treated fairly. The Cabinet Member for Crime and Stronger Communities also clarified that decisions in respect of the tethered horse policy would be taken in public.

Members commented on the risks associated with the proposed savings, for example the reduction in children’s services expenditure. The proposals posed significant challenges and it was unavoidable that there would be an impact on front line services. The Chair urged Members of all Groups to work together to mitigate the impact of the cuts and to lobby against further cuts to local government financing.

The Chair expressed appreciation of the work that had taken place in preparing the budget proposals.