Issue - meetings

Report of Director of Resources

Purpose of Report

To inform the Executive of the service and financial planning process for 2014-15, to approve 2014-15 budget strategy and to agree budget guidelines for issue to service managers to enable the production of the 2014-15 budget.

To present the most recent medium term financial forecasts.

To consider the Council Tax Reduction Scheme for 2014-15.

To agree the Council’s approach to Business Rates pooling for 2014-15.

Recommendations

The meeting is recommended:

 1.1        Note the updated MTFS forecast for the Council’s revenue budget for 2014-15 to 2018/19.

1.2         To endorse the overall 2014-15 budget strategy and service and financial planning process set out in the report.

1.3         Consider and agree the proposed budget guidelines and timetable for 2014-15 budget process (Appendices 1 and 2).

1.4         It is recommended that the current Council Tax Reduction Scheme (CTRS) remains as it is for 2014-15 as set out in Para 3.11 to 3.14. 

1.5         Show support in principle for continuing to work on business rate pooling and carry out more detailed work to ascertain whether we form a pool with the County or not for 2014-15 as set out in paragraphs 3.15 to 3.22 and delegate authority to the Director of Resources in consultation with the lead member for Financial Management to make the final decision.

Resolved

(1)          That the updated Medium Term Financial Strategy forecast for the Council’s revenue budget for 2014-15 to 2018/19 be noted.

(2)          That the overall 2014-15 budget strategy and service and financial planning process be endorsed.

(3)          That the proposed budget guidelines and timetable for 2014-15 budget process be agreed.

(4)          That it be agreed that the current Council Tax Reduction Scheme (CTRS) remains as it is for 2014-15.

(5)          That support in principle be shown for continuing to work on business rate pooling and agreement be given to carry out more detailed work to ascertain whether Cherwell District Council forms a pool with the County or not for 2014-15 and authority be delegated to the Director of Resources in consultation with the Lead Member for Financial Management to make the final decision.

The Director of Resources submitted a report which informed Executive of the service and financial planning process for 2014-15, sought approval of the 2014-15 budget strategy and agreement of budget guidelines for issue to service managers to enable the production of the 2014-15 budget.

The report also presented the most recent medium term financial forecasts, sought consideration of the Council Tax Reduction Scheme for 2014-15 and agreement of the Council’s approach to Business Rates pooling for 2014-15.

Resolved

(1)          That the updated Medium Term Financial Strategy forecast for the Council’s revenue budget for 2014-15 to 2018/19 be noted.

(2)          That the overall 2014-15 budget strategy and service and financial planning process be endorsed.

(3)          That the proposed budget guidelines and timetable for 2014-15 budget process be agreed.

(4)          That it be agreed that the current Council Tax Reduction Scheme (CTRS) remains as it is for 2014-15.

(5)          That support in principle be shown for continuing to work on business rate pooling and agreement be given to carry out more detailed work to ascertain whether Cherwell District Council forms a pool with the County or not for 2014-15 and authority be delegated to the Director of Resources in consultation with the Lead Member for Financial Management to make the final decision.

Reasons

The Council needs to set guidelines and a timetable for the preparation of draft estimates for 2014-15. These guidelines should support the objectives contained in the Business Plan, Service Plans and the Medium Term Financial Strategy which is currently being refreshed.

The guidelines provide a framework to identify areas of potential cost reductions across the organisation informed by our public consultation, previous investment, value for money reviews and our strategic priorities.

Council will be asked to agree the 2014-15 budget and corporate plan (and the service plans that underpin delivery) at their meeting in February 2013.

Oxfordshire authorities are not in a business rate pool for 2013-14 as the financial benefits of such an arrangement were outweighed by the risks associated with them if all authorities in Oxfordshire participated. Consideration has been given to formulating a business rates pool with just those authorities in Oxfordshire that are growing so that the amount of levy paid to the government is minimised and a greater share is kept locally than would otherwise be the case. Initial work has been carried out to estimate the financial benefit and this shows that it could be financially beneficial. However, more recent will be input into the model before a final recommendations made.

Options

Option 1: To disagree with the recommendations set out above. This is rejected as it will unnecessarily delay the formulation of the detailed budget for 2014-15.