Decision details

To consider the report of the Cabinet Member for Resources, Leisure and Culture seeking to set out the latest estimated overall financial position on the General Fund Revenue Budget for 2012/13 to 2014/15 and to outline the main issues that need to be addressed in considering the Cabinet’s budget and council tax proposals to Council on 15th February 2012.

On consideration of the report of the Cabinet Member forResources, Leisure and Culture, Cabinet agreed to do the following:

(a)  Note the position on the estimated outturn and revised budget for 2011/12 as set out in paragraphs 9 to18.

(b)  Approve that the Executive Director for Health & Adult Social Care enter into an agreement with NHS Southampton City (NHSSC) under section 256 National Health Act 2006 for a period of two years from 1 April 2011 to transfer a budget to the Council to spend on both services that benefit health and for post discharge services / re-ablement, as directed within the Local Government Finance Settlement announced on 13 December 2010.  The sums to be transferred by NHSSC will be £3.8M and an estimated £4.4M in 2011/12 and 2012/13 respectively.

(c)  Delegate authority to the Executive Director for Health & Adult Social Care, in consultation with the Chief Financial Officer and the Head of Legal, HR & Democratic Services, to extend, renegotiate, or enter into any further agreements with NHSSC in relation to any funding streams allocated to NHSSC, or successor body, with the specific purpose of being transferred to the Local Authority under a S256 arrangement and add any such sums to the budget.

(d)  Note the position on the forecast roll forward budget for 2012/13 as set out in paragraphs 23 to 35.

(e)  Note and approve the arrangements made by the Leader, in accordance with the Local Government Act 2000, for the Cabinet Member for Resources, Leisure & Culture to have responsibility for financial management and budgetary policies and strategies, and that the Cabinet Member for Resources, Leisure & Culture will in, accordance with the Budget & Policy Framework Rules as set out in the Council’s Constitution, be authorised accordingly to finalise the Executive’s proposals in respect of the Budget for 2012/13, in consultation with the Leader, for submission to Full Council on 15 February 2012.

(f)  Recommend that Full Council

  i.  Notes the Consultation process that was followed as outlined in Appendix 1.

  ii.  Notes the Equality Impact Assessment process that was followed as outlined in Appendix 2

  iii.  Approves the revised estimate for 2011/12 as set out in Appendix 3.

  iv.  Approves the use of £563,000 of in year under spend to increase the Interest Equalisation Reserve in 2011/12 to ensure that adequate provision is made for the future increase in interest costs associated with the ongoing utilisation of variable interest rates.

  v.  Notes the position on the forecast roll forward budget for 2012/13 as set out in paragraphs 23 to 35.

  vi.  Approves the revenue bids set out in Appendix 4.

  vii.  Approves the efficiencies, income and service reductions as set out in Appendix 5.

  viii.  Approves the setting up of a Pay Reserve, as set out in paragraph 63.

  ix.  Approves the changes to the discretionary redundancy policy as set out in paragraphs 65 to 72.

  x.  Notes the position of the current negotiations with Trade Unions with respect to Terms & Conditions changes implemented on 11 July.as set out in paragraphs 55 to 64

  xi.  Agrees to accept the one off Council Tax freeze grant funding for 2012/13 of £2.1M

  xii.  Approves the General Fund Revenue Budget as set out in Appendix 6, which implements a council tax freeze.

  xiii.  Delegates authority to the Chief Financial Officer to action all budget changes arising from the approved pressures, bids, efficiencies, income and service reductions and incorporate any other approved amendments into the General Fund estimates.

  xiv.  Approves a revised minimum balance of £5.0M as recommended by the Chief Financial Officer in line with the policy guidance outlined in paragraphs 81 to 83.

  xv.  Notes that after taking these items into account, there is an estimated General Fund balance of £5.1M at the end of 2013/14 as detailed in paragraph 84.

  xvi.  Delegates authority to the Chief Financial Officer, in consultation with the Executive Director of Corporate Services, to do anything necessary to give effect to the recommendations in this report.

  xvii.  Sets the Council Tax Requirement for 2012/13 at £83,205,500.

  xviii.  Notes the estimates of precepts on the Council Tax collection fund for 2012/13 as set out in Appendix 8

  xix.  Notes the Medium Term Forecast as set out in Appendix 9.

  xx.  Authorises the Chief Executive and Chief Officers to pursue the development of the options for efficiencies, income and service reductions as set out in Appendix 5 for the financial years 2013/14 and 2014/15 and continue to develop options to close the remaining projected gaps in those years.

The Constitution requires the Executive to recommend to Council on the 15 February 2012 its budget proposals for the forthcoming year.  The recommendations contained in this report set out the various elements of the budget that need to be considered and addressed by the Cabinet in preparing the final papers that will be forwarded to Council.

Alternative options for revenue spending form an integral part of the development of the overall Budget Strategy that will be considered at the budget setting meeting on 15February 2012.  Alternative options may be drawn up by opposition groups and presented to the same meeting.