Agenda item

Report of the Leader of the Council outlining how the Council will finance its operations over the next five years and recommending a budget to the Council for 2011/12

The Council received a report by the Leader of the Council on the Medium Term Financial Strategy (MTFS) 20011/16 and 2011/12 Budget and Council Tax proposals.

He informed the Council that the Cabinet, on 2 February 2011, considered the budget proposals for 2011/12 which involved a 0% increase in Council Tax.  He also paid tribute to his Cabinet colleagues, the Innovation and Efficiency Board, Scrutiny Members and to the Director of Finance and Resources and his staff for their hard work in shaping the budget.

Mr. Povey moved, and Mr. Locke seconded the following amendment:

“That the recommendations contained in paragraph 1 of the report be amended by the addition of the following recommendation:

(c) This Council notes with indignation, that whilst Staffordshire is facing a massive 12.6% (£25m) reduction in its financial settlement in 2011/12, the UK’s contribution to the European Union (EU) is set to rise by 60 % over two years.  This Council notes that, despite the opposition of some conservative MPs and Labour and Conservative MEPs, it is likely that the Government will agree to a further 2.9% increase in the overall EU budget.  This Council believes that the EU should be treated the same as other tiers of government and in these austere times should share responsibility, along with Central and Local Government, for pubic spending reductions.  Sharing the burden would result in less severe cuts for local authorities, and give more assistance to councils to protect front line services.  This Council therefore urges Staffordshire’s 12 MPs not to support an increase in the EU budget.”

Several Members spoke in support of the proposal to write to the Staffordshire MPs but indicated that the proposed amendment to the budget recommendations was not the best way to take this matter further.  The Leader of the Council indicated that he was prepared to write to Staffordshire MPs to express Members’ concerns in relation to proposed increases in the UK’s contribution to the European Union.  Accordingly, Mr. Povey, with the consent of Mr. Locke, withdrew his amendment.

Mrs. Jebb moved, and Mr. Easton seconded the following amendment:

““That the recommendations contained in paragraph 1 of the report be amended by the addition of the following recommendations:

(i)            That Cabinet review carefully the earmarked reserves to identify where a small percentage of these could be reinvested into frontline services;

(ii)          That Cabinet notes the requirement for £9m general reserves in the papers from 19 January 2011 (paragraph 53) has reduced to a requirement for £8.2m general reserves in the papers for 10 February 2011 (paragraph 10.4).

(iii)        Request that this unallocated £800,000 is used to immediately restore frontline services you have cut – starting with school crossing patrols.”

A wide ranging discussion then ensued including the role of Scrutiny in helping to formulate the budget proposals; the level of the national debt; the local government staff pay freeze; and the measures being taken by the County Council to improve road safety, particularly around schools. Following a vote, the Chairman declared the amendment lost.

RESOLVED – (a) That the following be approved:

·        A net revenue budget of £492.590m for 2011/12;

·        A 2011/12 revenue budget for services as set out in Appendix 14 of the report:

·        A contingency provision of £2m;

·        A net contribution from reserves and balances of £12.607m for

2011/12;

·        A budget requirement of £479.983m for 2011/12;

·        A Council Tax at Band D of £1,028.81, a zero per cent increase, leading to a Council Tax for each category of dwelling as set out below:

Category of                                      Council Tax rate

dwelling                                                        £

Band A                                                       685.87

Band B                                                       800.19

Band C                                                       914.50

Band D                                                   1,028.81

Band E                                                    1,257.43

Band F                                                    1,486.06

Band G                                                    1,714.68

Band H                                                    2,057.62

·        That, after allowing for the Collection Fund surplus, the amount to be raised through Council Tax be £296.169m for 2011/12 and that the Director of Finance and Resources be authorised to sign precept notices on the billing authorities respectively liable for the total precept payable and that each notice state the total precept payable and the Council Tax in relation to each category of dwelling as calculated in accordance with statutory requirements;

·        The Capital Programme as set out in Appendix 6 to the report;

·        The Prudential Indicators set out in Appendix 11 to the report; and

·           That it be noted that the Authorised Limit for external debt determined for 2011/12 as detailed in Appendix 11 of the report will be the statutory limit determined under Section 3(1) of the Local Government Act 2003; and

·        The Financial Health Indicators set out in Appendix 13 to the report;

·        That the Strategic Plan and the Medium Term Financial Strategy (MTFS) on the basis of a Council Tax increase of 2.0% for the period 2012/13 to 2015/16 and that services continue to develop their medium term plans on the basis of the planning forecasts set out in Appendix 14of the report.

(b) That the Director of Finance and Resources’ comments in respect of the adequacy of reserves and the robustness of the budget set out in the report be noted .

NOTE: The meeting was adjourned at 12:50 pm