Decision details

Cabinet will be asked to consider recommendations on the County Council's Budget for 2015/16 – 2017/18.

The Committee received reports setting out updates on the County Council's financial position for 2014/15 and the financial strategy for 2015/16 - 2017/18.

It was reported that the current position represented a forecast underspend of around £4m in the revenue budget, notably taking into account the changes made to the Waste PFI arrangements and contributions from treasury management. Demand pressures continued, particularly in the area of social care, and careful monitoring and management would need to continue.

In terms of the Capital Programme, it was reported that 84.4% of the programme was on target with slippage attributed to, for example, planning issues and the review of the County Council's property portfolio.

The committee then considered the position for the future. It was recognised that there remained the requirement to make savings of £300m between 2014 and 2018, with £142m of those savings agreed by the Full Council in February 2014. The report set out how the financial situation had changed since then, making particular reference to the changes in demand and costs such as demand for social care, landfill tax and waste transport, the potential impact of the Care Act and Deprivation of Liberty Safeguards. Changes were also expected in the Education Services Grant, which would benefit the County Council by £4m, as well as business rates, council tax and the New Homes Bonus, would also mean additional costs of £4.6m over the next three years.

The committee noted that the general election in May 2015 brought additional uncertainty to a wide range of issues connected with local government financing and services. By 2017/18, it was highlighted that the County Council would have an expected total overall revenue budget of £689m.

It was reported that Cabinet on 6 November would publish the full set of options developed by officers for the service offer that the council will make in future. It was highlighted that these were not at this stage options chosen by Cabinet, but the full set of options developed, in order for there to be a full and open consultation, including with the Budget Scrutiny Working Group. Cabinet would then agree its proposals for the formal consultation at its meeting on 8 January 2015.

Resolved: That the recommendations in the reports to Cabinet be noted and that no additional comments or suggested alternative recommendation be made.