To progress the Council’s change programme, to report on the service plan reviews for 2013/14 conducted in March/April aimed at de-risking identified areas of weakness to ensure the Council’s plans are resilient and remain within its overall funding envelope of £150.296 million, and to seek agreement on next steps. 

Councillor AW Johnson, the Leader of the Council, presented the report. Councillor MAF Hubbard asked if Councillor Johnson was willing to remove recommendation (b) from the recommendations and he confirmed that he was. Council agreed the alteration to the recommendation.  Accordingly, recommendation (c) became recommendation (b) and so on.

In presenting the report, Councillor Johnson made the following points:

·         The Council is facing the worst financial challenge it has had in its fifteen year history.

·         To manage this budget needs a change of pace, it can be viewed as ‘Root and Branch II’ it is just the pace that has picked up.

·         Nothing upsets people more than a change of pace, but there is nothing suggested in this review that would not have to be looked at in any event. Though actually seeing this in practice is discomforting.

·         There are no real alternatives and this is why no alternative budget proposal has been put forward.

·         The expectation of cuts in the comprehensive spending review from government will certainly be 10% if not more. By 2015 the Council will have had to find £54m in cuts over the previous 5 years.

·         The correct net budget total set in February 2013 was correct, despite the £3.8m accounting error. This, together with the anticipated reductions in the comprehensive spending review means the Council has to set these savings for future years.

·         Reference to the budget being ‘flawed’ was incorrect. The budget was agreed over some fifty stages and was examined by six Overview and Scrutiny task and finish groups.

·         There is a common public misconception that Council Tax pays for all the Council’s services where in reality only 24% comes from this source. The largest part comes from the central government grant. The Council will have lost one third of this grant over the last three years and 50% by 2015.

·         No decision to close libraries or museums has been made and the report makes it clear that we are starting the process of consultation with stakeholders with the results to be presented in a report to Cabinet in September. It would be madness to set about damaging that which is held dear, but a decision to keep some services would be at the expense of others. We need to discuss how we can use declining resources to protect services as these pressures are unavoidable.

Councillor AW Johnson proposed the recommendations, seconded by Councillor PGH Cutter.

Councillor RB Hamilton then proposed an amendment to the recommendations as follows:

To add:

(d)  As part of the budget setting process for 2014/15 that Cabinet engages fully with all Members, Overview & Scrutiny Committees, Parish Councils, Business, the Third Sector, Residents of Herefordshire and local media to ensure a good, consistent understanding of the Councils financial position and its priorities including its income and expenditure, revenue and capital position; to enable an effective dialogue that ensures that the Council has a good understanding of peoples priorities and those that are valued by the wider community.

(e)   That  ...  view the full minutes text for item 15

To progress the Council’s change programme, to report on the service plan reviews for 2013/14 conducted in March/ April aimed at de-risking identified areas of weakness to ensure the Council’s plans are resilient and remain within its overall funding envelope of £150.296 million, and to seek Cabinet agreement on next steps. 

The Cabinet Member, Financial Management, recommended to Cabinet that the Service Budget Reductions and Future Financial Planning report is put to the meeting of the full Council on 24 May, to allow all Members the opportunity to debate the budget proposals.  The Leader seconded the recommendation.

RESOLVED

THAT:            Cabinet refered the proposed actions in Agenda Item 4 to an extraordinary Council meeting to be held on 24 May 2013 concerning the reshaping of Council services and to ensure the necessary steps are taken to deliver a balanced budget in 2013/14.