Agenda item

-           Strategic Director of Resources to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Director of Financial Services, which proposed a Budget for 2013/14 based on the outcome of the Council’s Financial Settlement and provided details of:-

·               The progress of the Budget process since July, 2012 (including confirmation of the Local Government Financial Settlement).

·               The ongoing principles reflected in the Budget and spending plans.

·               The Council’s recommended Revenue Budget for 2013/14.

·               Savings proposals from Directorates.

·               Precepts and levies made on the Council by other authorities.

·               Proposed Council Tax levels for the coming financial year.

·               Proposed future developments in the three year Medium Term Financial Strategy (MTFS) 2013/14 to 2015/16. 

As required by Legislation, the report also contained the Director of Financial Services’ (the Council’s Responsible Financial Officer) assessment of the robustness of the estimates included within the Budget and the adequacy of the reserves for which the Budget provided.

Since the 2011/12 Budget the Council had said that its focus must be on the customers it served, the communities and businesses of Rotherham and not its organisational structure.

To achieve this end, a clear set of principles had been identified for considering Budget proposals.  This had, as a first course of action, been to streamline management and administration and to reduce as far as possible back office costs and to date these had been reduced by over 15% with further significant reductions being proposed for 2013/14.  In addition, areas had continued to be identified where better ways of working could result in even greater efficiency and effectiveness.  However, faced with such a significant budget deficit, the Council had still to make some tough choices which were reflected in the proposals put forward to Cabinet.

By adopting a calm and measured approach and planning ahead it was possible for the Council to protect services for those most in need. Within the Budget, provision was made to:-

·               Ensuring that safeguarding of children was a top priority through the provision of improved services for children in care and with Special Educational Needs.

·               Support to vulnerable families and individuals.

·               Continuing investment in preventative services and early intervention.

·               Reducing the time taken to provide new packages of care and supply equipment, assistive technologies and adaptations to safeguard adults when their life circumstances changed.

·               Continuing to promote new business start-ups and stimulate the local economy.

·               Helping Rotherham Credit Unions continue to provide financial support to residents who were in danger of being made homeless because of the economic downturn.

·               Continuing to invest in infrastructure across the Borough – houses, schools, roads, customer services and town centre regeneration.

The Budget, as outlined in the report, would:-

·               Protect funding helping to provide vital services for those most in need in communities.

·               Continue to reduce management and administration and back office costs as far as possible.

·               Enable the Council to continue to focus on Service transformation, ensuring services continued to be equipped to deliver a high standard that was fully aligned to the Community Strategy and Corporate Plan priorities and objectives.

The proposals for the 2013/14 Budget and Council Tax contained within the report were put forward having regard to several factors.  These were:-

·           That the assumptions about the level of resources and reserves available to support the 2013/14 Revenue Budget were sound. 

·           That the budget proposals upon which the Budget was predicated would be actioned by Elected Members and officers, as appropriate, and that this would be done having full and proper regard for the Council’s financial position. The prospects for this were good.

·           That through the on-going rigorous challenge of service design and delivery, other scrutiny and strategic and service planning processes the Council would ensure the sustainability of its annual Budget and other financial plans as well as the resilience of its overall financial position. Again the prospects were good.

This report, therefore, recommended:-

·                The Council Tax to remain at £1,230.03 at Band D equivalent for the fourth year running (i.e. no increase on the 2010/11 level).

·                A General Fund Revenue Budget for Rotherham Council in 2013/14 of £221.474m.

For information, the following general assumptions with respect to inflation have been provided for within the Budget:-

·                An overall 1% increase in staff pay in line with the Local Government Employers’ Organisation proposals.

·                A general price inflation rate of nil %, and where known in relation to specific items of expenditure, a specific provision for inflation if significantly different.  In line with Council policy, it was expected that all such pressures will be contained within Directorate Cash Limit budgets.

·                Average income inflation of 2.5%. 

Cabinet Members acknowledged the hard work that had led to the finalisation of the budget process and the attempts that were being made to focus on service transformation whilst ensuring that services continued to deliver a high standard.

Recommended:-  (1)  That a General Fund Revenue Budget for 2013/14 of £221.474m to be allocated to services, as set out in this report, be approved.

(2)  That there be no increase (for a second year running) in the Council Tax in respect of this Council’s own Budget giving an annual Band D Council Tax of £1,230.03.

(3)  That the comments of the Director of Financial Services, provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provided, be noted and adopted.

(4)  That the precept figures from South Yorkshire Police Authority, South Yorkshire Fire and Civil Defence Authority and the various Parish Councils and Parish Meetings of the Borough be incorporated, when known, into the recommendations to the Council on 6^th March, 2013.