Apologies for absence were received from Councillor JG Jarvis and Councillor RJ Phillips. 

There were no declarations of interest made. 

To approve and sign the minutes of the meeting held on 17 January 2013.

RESOLVED:  That the Minutes of the meeting held on 17 January 2013 be approved as a correct record and signed by the Chairman.

To consider the draft financial strategy for 2013/14 to 2015/16, which includes the 2013/14 revenue and capital budget for approval by Council on 18th February 2013, and to consider the outcome of consultation on proposals for savings.

The Cabinet Member Financial Management presented the report of the Chief Officer Finance and Commercial, which proposed the draft financial strategy for 2013/14 to 2015.  The report also included the 2013/14 revenue and capital budget for approval by Council on 18 February 2013, and the outcome of a consultation on proposals for savings. 

A supplementary report entitled “Budget Consultation Headline Results” was also tabled at the meeting.  This report captured the main themes emerging from the consultation on proposals for savings, following the closure of the consultation period on 31 January 2013.  The consultation results also contained letters from the Herefordshire Third Sector Board and the Herefordshire Voluntary Organisations Support Service.  In addition, the recommendations to Cabinet from both the General Overview and Scrutiny Committee and the Health Overview and Scrutiny Committee, were tabled in one document.  This followed meetings of both Committees held on 1 February 2013, where the 2013/14 Budget and the medium term financial strategy had been considered. 

The Cabinet Member Financial Management summarised the key points of the report, highlighting a reduction in Herefordshire’s funding from central government of almost 7% for 2013/14 and the significant challenges arising therefrom.  He referred to the proposed Council Tax increase of 1.9% as a difficult but necessary choice which would be used to fund Adult Social Care and further enable the Council to deliver its core objectives relating to vulnerable people and infrastructure.  A monitoring process would be introduced in respect of Council Tax collection to identify any risks and to assist with keeping the budgets within proposed limits.  He highlighted approximate savings of £9 million achieved through root and branch reviews to date, which were included in the budget. 

Cabinet noted that the final settlement had been received from central government on 4 February 2013, and initial indications were that it was marginally better than anticipated.  Members observed that local government funding systems would undergo significant changes during 2013/14, presenting further challenges for the Council.  The Cabinet Member Financial Management reported that the MP for north Herefordshire had taken up the issue of service provision and finance in rural areas, which he welcomed as a step towards recognition of the additional financial pressures faced by rural local authorities such as Herefordshire.  He emphasised that the support of all Members was needed to convey a public message about the aim of the budget proposals in relation to the Council’s core objectives. 

The Chief Officer Finance and Commercial reported that the final settlement figure, and a new national £8 million grant from central government for services in rural areas, would both impact on the finalised budget to be considered by Council on 18^th February 2013, and this would be reflected in the report to Council.  He confirmed the budget includes a £2m contribution to reserves because of the pressures in 2012/13 and the need to ensure financial stability.. 

During the ensuing discussion, the following principal points were made:

The outcomes of the public and stakeholder consultation on  ...  view the full minutes text for item 64.