Councillor. AW Johnson, the Cabinet Member Financial Management, presented the report to Council and sought amendment to recommendation “e” on page 16 of the agenda to replace reference to the 2012/13 budget with reference to the 2013/14 budget. This was agreed. In concluding, Councillor Johnson moved that the recommendations be accepted, which was seconded by Councillor H Bramer.

In discussion the following points were made:

·              The figures given in the annexe appear to include the grant to make up for the reduction in Council Tax benefits and not the precepted figures.

·              The overspend figure is £130k more than that in December 2012 estimate.

·              That reserves will be £2.3m below the minimum and assurance was sought for the next financial year in particular should service estimates turn out to be low.

·              Under S. 27 of the 2003 Act (referred to in para 10.4 of the report) there is a need to include proposals to avoid reserves dipping below the minimum level.

·              There were concerns that service levels could be seriously affected,  given the financial state of the County Hospital.

·              That the effect on services is not always a negative one and in some cases prompts better ways of delivering those services.

·              The key objective of the budget was to protect the most vulnerable in the community.

·              That the Council’s statutory finance officer ( S.151 Officer ) has approved the report as meeting all  necessary obligations.

RESOLVED UNANIMOUSLY THAT:

(a)         It be noted that the Council calculated the tax base 2013/14;

1)           for the whole Council area as 64,260.18 band D equivalent dwellings;

2)           for dwellings in those parts of the area to which a parish precept relates as in the attached Annex 1(i);

(b)     in respect of Council Tax for 2013/14 that the following amounts be approved by the Council for the year 2013/14 in accordance with Sections 31 to 36 of the Local Government Finance Act 1992 (as amended by the Localism Act 2011):

(i)      £333,068,881      being the estimated aggregate expenditure of the Council in accordance with Section 31A (2) of the Act, including all precepts issued to it by Parish Councils;

(ii)     £251,658,953      being the estimated aggregate income of the Council for the items set out in Section 31A (3) of the Act (including Formula Grant);

(iii)    £81,409,928        being the amount by which the aggregate at (b)(i) above exceeds the aggregate at (b)(ii) calculated by the Council in accordance with Section 31A(4) of the Act, as its Council Tax Requirement for the year (including Parish precepts);

(iv)    £1,266.88            being the amount at b(iii) above divided by the amount of the Council Tax base calculated by the Council, in accordance with Section 31B of the Act, as the basic amount of its Council Tax for the year (including Parish precepts);

(v)     £2,499,081          being the aggregate amount of all special items (Parish precepts) referred to in Section 34(1) of the Act;

(vi)    £1,227.99            being the amount at (iv) above less the result given by dividing the amount at (v) above by the amount of the Council Tax base calculated by the Council, in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for the year for dwellings in those parts of its area to which no Parish precept relates;

(c)     That the precepting authority details incorporated in Annex 1 (i-v), relating to Special Items, West Mercia Police and Hereford and Worcester Combined Fire Authority be approved in accordance with Sections 30(2), 34(3), 36(1) and Section 40 of the Local Government Finance Act 1992 (as amended).

(d)     That the Council Tax requirement for the Council’s own purposes for 2013/14 (excluding parishes) be approved as £78,910,847; and

(e)     In respect of the Council’s 2013/14 Budget a Council Tax of £1,227.99 be levied (at Band D).