Agenda item

This report presents the Financial Strategy 2014-2019, including detailed revenue budget proposals for 2014/15 and 2015/16, and asks Members to recommend to Council approval of the proposals.

Resolved:           That Cabinet approve the average rent increase for 2014/15, as shown in table 14 and paragraphs 83 to 87, of the report, as 4.95%. This rent increase will be applied across council dwellings, hostels and Gypsy, Roma and Traveller Community sites.  It is proposed that in addition to the average rent increase to Gypsy, Roma and Traveller Community pitch rents, a flat rate additional increase of £25 per week per pitch is also applied, to fund increased management of the sites.

Reason:     To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.

[See also Part B minute]

Members considered a report which presented the financial strategy for 2014 to 2019, including detailed revenue budget proposals for 2014/15 and 2015/16 for Council approval. Following the issuing of the final Local Government Finance Settlement on 5 February 2014 amendments had been made to the report, a copy of which had been circulated to all Members and published online.

It was noted that the financial strategy delivered a balanced budget over a 2 year period including savings totalling £23.4m and a proposed Council Tax increase of 1.9% for 2014/15. The total council tax increase including the Parish, Police and Fire Authority precepts, would be agreed at the full Council meeting on 27 February 2014.

Members discussed some of the key issues including the proposed growth in adult social care, continued revenue funding for the York Financial Assistance scheme and the Living Wage together with support for Strategic Transport investment and budget provision for business rate discounts.

The Cabinet Member referred to the national context and to significant reductions in funding combined with a range of pressures affecting the budget. It was confirmed that with an increasing demand for council services and rising fuel costs, landfill tax and inflation driving costs up that the budget had had to be prudent whilst  protect vulnerable people. The Cabinet Member although expressing sympathy with earlier speakers comments, confirmed that the authority were required to set a council tax or the decision would be taken out of the authorities hands. He referred to the budget strategy for 2015/16 which set out plans for a three strand process of council wide efficiency, prioritisation and the Rewiring of Public Services.

It was noted that an integral part of the development of the 2 year financial strategy had been as a result of feedback on budget priorities to ensure that the decisions had been informed by the views of key groups across the community. Other Members highlighted the scale of the challenges facing the Council and for the need to continue to review all areas of expenditure in addition to considering the type and level of services it provided.

Following further discussion it was

Resolved:           That Cabinet approve the average rent increase for 2014/15, as shown in table 14 and paragraphs 83 to 87, of the report, as 4.95%. This rent increase will be applied across council dwellings, hostels and Gypsy, Roma and Traveller Community sites.  It is proposed that in addition to the average rent increase to Gypsy, Roma and Traveller Community pitch rents, a flat rate additional increase of £25 per week per pitch is also applied, to fund increased management of the sites. ^1.

Reason:     To ensure the ongoing financial stability of the HRA and allow work on improving the quality of the council’s affordable housing to continue.