Issue - meetings

– report by Paul Carter, Leader of the Council, John Simmonds, Cabinet member for Finance and Business Support, Mr A Wood, Corporate Director of Finance and Procurement) (Mr D Shipton was present for this item)

(1).      The provisional finance settlement from the Department for Communities and Local Government (DCLG) was announced on 8 December 2011. Mr Shipton said the provisional settlements were largely as had been anticipated based on the indicative allocations announced on 31 January 2011 and set out in table 3 of the draft Medium Term Financial Plan (page 20) and covered in paragraphs 2.23 to 2.32.

(2).      The main headline for schools is that the Dedicated Schools Grant (DSG) would remain at the same cash per pupil as 2011/12 (which itself was the same as 2010/11) and that once again no authority can lose more than 2% in cash terms.  There are still some specific grants which have not been announced but the Council’s policy will remain  the same in that it will adjust spending supported by specific grants in line with grant changes.

(3)       Mr Shipton said no indicative allocations for 2013/14 or 2014/15 have been published pending the outcome of consultation on changes to both the local government and schools funding systems.  The Government published the draft Local Government Finance Bill on 20 December 2011 which Mr Shipton explained would provide the legal framework for the Business Rates retention proposals. 

(4)       The deadline for responses to the provisional local government settlement  was 16 January 2012 and Cabinet noted  that the proposed response would include welcoming the fact that the Government had not made any changes to the formula Grant methodology and that it now incorporated the 2011/12 Council Tax Freeze Grant. Concerns previously expressed with the “four block” model would be re-stated and that this would in effect be crystallised with the proposed changes from 2013/14 through the Business Rates retention proposals.

(5)       Following further discussion Cabinet resolved to note the provisional allocations and delegated authority to the Cabinet Member for Finance and Business Support to agree the Council’s response to the Provisional Local Government Settlement.