Agenda item

(As a result of the late settlement it will not be possible to print this report with the agenda despatch on 20^th December 2012.  A copy of the report will be published on the Council’s Website by 5pm on Friday, 21^st December 2012.)

Report RES13015

The Executive received a report seeking approval of the initial draft 2013/14 Budget which included actions to reduce the Council’s medium term “budget gap”.  The report was part of the process of forward financial planning and management leading up to the Council considering its Council Tax levels later in February.  It also contained a forecast of the financial prospects for the next 4 years and identified the significant changes which had impacted on the Council’s finances from 2013/14 arising from the final outcome of the Local Government Resources review that included the localisation of business rates and the new council tax support scheme. 

The Finance Director briefly introduced the report and advised that a very prudent approach to the budget had been taken, particularly recognising the significant projected budget gap in future years. Careful consideration was given to the implications for the next 4 years. The financial projections in the report assumed a Council Tax increase of 2% per annum.  Attention was also drawn to the recommendation to Council that an earmarked reserve be set up to support the future integration of health and social care initiatives and the ‘promise’ programme. Bromley Primary Care Trust (PCT) had identified initial funding of £2.5m which was expected to be followed by a further contribution at the end of the financial year.  The utilisation of the funding would be determined within a formal Section 256 agreement between the Council and the PCT and following Council approval to the earmarked reserve of this money any future draw down of funds would require the approval of the Executive.  The Resources Portfolio Holder asked for the recording of his appreciation and thanks to the Director and his staff who stayed late to produce the report which had been delayed awaiting the government’s funding announcement on the last day before closure of the offices for Christmas.

The Director had also circulated at the meeting a further recommendation to be added to his report seeking Executive approval for the allocation of £55,000 from the Local Reform and Community Voices Grant (total grant sum £208,498) in 2013/14 and 2014/15 to fund the Healthwatch service.  A full report on this matter was going to the Care Services PDS Committee meeting next week for approval by the Portfolio Holder seeking agreement to proceed with market testing for the provision of a local Healthwatch organisation by the 1^st April 2013, which was a statutory requirement.  Although Members accepted that by dealing with the request at this meeting it would save time approval would only be given subject to the PDS Committee and Portfolio Holder agreeing the proposals.

RESOLVED that

1)  the initial draft 2013/14 Budget, including the additional savings identified as part of the 2012/13 Budget process and the further savings detailed in Appendix 4 be approved;

2)  the initial draft 2013/14 budget for each Portfolio be referred to the relevant PDS Committee for consideration;

3)  the financial projections for 2014/15 to 2016/17 be noted;

4)  it be noted that there are still areas of financial uncertainty which will impact on the final 2013/14 Budget and future year forecasts;

5)  the setting of the schools budget, mainly met through Dedicated Schools Grant, be delegated to the Education Portfolio Holder, allowing for consultation with head teachers, governors and the Schools Forum;

6)  the outcome of the consultations with the PDS Committees be reported to the next meeting of the Executive;

7)  the proposed contribution of £340,732 in 2013/14 to the London Boroughs Grants Committee be approved;

8)  where consultation has not already commenced, approval be given for the Officers to begin the process of consulting on the savings proposals prior to finalising the implementation of the savings in Appendix 4 of the report;

9)  the significant budget gap remaining of an estimated £39m per annum by 21126/17 be noted;

10)  Council be recommended that a sum of £2.5m, relating to funding from the PCT, be set aside as an earmarked reserve to ensure the support of key initiatives relating to the integration of the health and social care/ “promise programme;

11)  any decision on recommended council tax levels to Council, will be undertaken at the next meeting of the Executive; and

12)  approval be given to the allocation of £55k from the Local Reform and Community Voices Grant (total grant sum £208,498) in 2013/14 and 2014/15 to fund the Healthwatch service, subject to the agreement on 16^th January 2013 of the Care Services Portfolio Holder, in consultation with the Chairman of the Care Services Policy Development and Scrutiny Committee, to the award of the contract for Healthwatch.