Agenda item

[To approve additional savings proposals for both 2014/15 and 2015/16]

Cllr Andrew Johnson presented the report that identified additional savings for both 2014/15 and 2015/16 in accordance with the strategy set out in the five year budget and medium term financial strategy 2014/15 to 2018/19, that was approved by Cabinet on 25 February 2014 and Full Council on 4 March 2014. The proposals demonstrated that the Council had a plan to balance its budget going forward.  Subject to approval by Full Council, the implementation of the savings proposals would be subject to full consultation with Council employees and the public. 

He reported that the savings proposals that would affect all services to the public but were as a result of successive cuts in Central Government grant support to the Council between 2010/11 and 2016/17.  Failure to make the savings would mean that the Council would not balance its budget.  He added that it was with deep regret that further savings proposals were being put forward.

Cllr Roger Lawrence referred to a press release issued by the Conservative Group on neighbourhood wardens.  He reported that the wardens had provided a valuable service to the communities across the city over the years.  However, any savings proposals that are withdrawn would mean that compensatory savings would need to be identified. The Cabinet would always consider other options presented and would be happy to discuss this as part of the consultations.

Resolved:

1.    That Council be recommended to approve:

a.         The revised budget requirement for 2014/15 of £235.9 million for General Fund services, which is a reduction of £1.7 million as a result of the additional savings that have been identified to date.

b.         The implementation of the additional savings proposals, amounting to £1.7 million in 2014/15, subject to the outcome of appropriate and satisfactory scrutiny, consultation and equality analyses.

2.    That the overarching strategy to deliver the £25 million for 2015/16 be approved.

3.    That the savings proposals amounting to £16.4 million in 2015/16, be further developed for inclusion in the draft 2015/16 budget to be reported to Cabinet in October 2014.

4.    That Council be recommended to note:

a.         In addition to the 2014/15 savings proposals that are being approved it is anticipated that there will be further savings from other, as yet unquantified, proposals as well as from the acceleration of some of the existing savings proposals.

b.         All additional savings identified and delivered during 2014/15 will further reduce the call on the General Fund balances during 2014/15 and therefore contribute directly towards the aim of holding at least £10 million in the General Fund balance.

5.    That it be noted that while progress is being made against the Council’s agreed budget strategy, additional work is underway in order to deliver the agreed strategy to address the projected budget deficit; namely to identify a further £7 million of savings for 2015/16.

6.    That it be noted that whilst the savings proposals identified are not sufficient to rebuild general reserves to the minimum £10 million level in 2015/16, it is projected that there would still be an uncommitted sum in hand.  Whilst this represents progress against the Council’s agreed budget strategy, work must continue in order to achieve the minimum recommended level of £10 million in 2015/16 and to avoid exhausting general fund balances by early 2016/17.

7.    That it be noted that the projected general fund balance is subject to change as the 2013/14 accounts are still being closed, any resulting variance to the projections within this report will be reflected in the October budget report to Cabinet.

8.    That it be noted that due to the uncertainty surrounding the future of public finances in 2015/16 and beyond, and the existing assumptions concerning the successful delivery of significant levels of challenging savings, the projected additional savings requirement in each of the next four financial years could still change significantly as more information becomes available.