Agenda item

 – Report of the Deputy Leader and Cabinet Member for Finance and Procurement Mr John Simmonds and Corporate Director for Finance and Procurement, Andy Wood)

Cabinetreceived a reportsetting out the proposedfinaldraft budgetfor2014/15and Medium TermFinancialPlan (MTFP)2014/17to be presentedto CountyCouncil for agreementon13th February2014.

TheDeputyLeader& CabinetMemberforFinanceand Procurement,Mr Simmonds, introducedthe reportforCabinet.In particularhe referredto the following:

•        Thatthe Councilhad taken£250million fromthe budgetin the lastthreeyears as a resultofpressuresand fundingreductionsand that thetrendwas setto continue.

•        Thatin lightofthesedifficulteconomicpressuresthe newsthat the governmenthad reconsideredthe cessationofthe NewHomes Bonus was welcomed.

•        Thattheproposedbudgetrepresentedthe coreobjectives that continuedto be pursuedby Kent CountyCouncil, GrowthwithoutGridlock, BoldSteps for Kent andprotectingthe vulnerable.

•        Thatthetransformationagendawould be crucialto maintainingservices inthe future.

•        Thatit wascrucial thatthe councilwas awareofthe prioritiesofresidentsof Kent whilespendingan everreducedbudgetwhich made difficultchoices moreand more likely.

•        Thatthefloods had servedas a reminderto membersofthe importanceof beingfinanciallypreparedfor theunexpected.

•        Theconsultationhad been well runand successfuland itwas largelyas a result of thisthat itwas agreedthat counciltaxshould beraised by1.99% as respondentssuggestedthat they wouldendorsesuch a riseto protectservices forthe vulnerable.

TheCorporateDirectorforFinanceand Procurement, AndyWood,spoketo the item, he particularlyhighlightedthe following,while referringto slides [appendix1]:

•        ThattheLocal GovernmentSettlementannounced on 18 December was largelyin linewith thepredictions madeby officersat Kent.

•        Thatthe council taxbase washigher than had beenexpected andfurther news had been receivedfromcentralgovernmentwho had agreedto continue the NewHomesBonusand the CouncilTaxFreeze Grant,both of whichhad been atrisk.  In relation to the proposedCapitalbudgethe reportedthat:

•        TheCapitalbudgetfor thenext threeyears continuedto sitabove £600million

•        A continuedlimit of15% onborrowing costs hadbeen includedin the budget.

•        A largeproportionofthe budgetwould be spent on schoolsand roadsbut a proportioncontinuedto be spent on regenerationprojectssuch asBroadband roll out and Live Margate

In relation to the proposed Revenue budget Mr Wood reported:

•        The inclusion of a proposed increase in council tax of 1.99% just under the referendum threshold currently set by the Government. Parliament was due to consider the threshold further before the 12 February and therefore, should it alter, last minute amendments to the budget would be needed at the Council meeting of 13 February.

•        That the council tax increase and the tax base increase reported earlier combined to create and additional 19m set against 35m reduction in Grant funding. With other factors included the council had a total reduction of 18m in the overall budget.

•        Pressures continued to build in some service delivery areas and costs continued to rise. These pressures, although sometimes offset by transferred monies, would continue to increase the spend required by KCC, by approximately 73m.

•        Considering increases and reductions, pressures and transferred monies, the overall saving required would be 80m. The proposed budget achieved these savings.

TheCabinetMemberforEconomicDevelopment,Mr MarkDance,spoke to the item. Hetalkedaboutthe statutory/ non-statutorydivide andhopedthat the councilwould continueto bidfor fundsto delivernon-statutoryservicesthat in turnwould ease pressureon statutoryfunctions.

TheCabinetMemberforSpecialistChildren’s Services,Mrs JennyWhittleflagged up an emerging pressurewithin specialistchildren’sservices. The‘Stayingput’ policy, wherebylocal authoritieswould be required to providefor lookedafterchildren to staywithfoster parentsuntil theage of21. AlthoughKentCountyCouncil already offeredyoung peoplethatoptionthispolicy waslikely to increasedemand.In contrast, MrsWhittlealsoreporteda potentialsaving relatingto a proposedreduction incourt feesthat if introducedwould save between£400,000and £1m.

TheCabinetMemberforCommercialandTradedServices, MrBryanSweetland joinedthe discussionto add thata review oftradedcompanieshadbeen conducted and rationalisationofthe structurehad takenplace. As aresult, thecurrent contributionof£5mwas predictedto growto £10m after twofinancial years.In additionthe businessesemployeda significantnumberofpeopleand continuedto provide servicesnationwide.

TheLeaderwelcomed thenews fromthetradedservices portfolio,somethingwhich the transformation wouldencouragein thefuture.

TheDeputyLeaderconcludedthe discussionby thankingofficerswithinthe Finance departmentfortheircontinuedhardwork andprofessionalism indeliveringa timely budget againstever tighterdeadlines.

It wasRESOLVEDthat thefinal draft budgetand theCouncilTaxprecept takinginto account proposedamendmentsfromCabinetCommitteesand any necessary changesarising out of the provisionalLocal GovernmentSettlementand Council Tax/BusinessRatetax basenotificationfromdistrict councilsbe endorsedto County Councilon 13 February foragreement.