Agenda item

B Report of the Director of Finance and Support

1.      The Cabinet’s General fund draft budget proposals for 2010/11 and indicative budgets for 2011/12, and 2012/13 as summarised in Annexes A to E of the report are approved for public consultation.

2.      The proposed council tax increase of 2.47% for 2010/11 and the indicative 2.47% for 2011/12, and 2012/13 are approved for public consultation.

3.      The Cabinet’s draft capital programme and financing as detailed in annexes I, J, and K of the report are approved for public consultation

4.      Approval is given to the draft Housing Revenue Account (HRA) budget excluding charges, subsidy and rents.

5.      The draft Capital Strategy at appendix L of the report is approved for consultation.

6.      The consultation leaflet is to be delegated to the Assistant Chief Executive in consultation with the Leader and Portfolio Holder for Finance for approval.

7.      The Chief Executive and Director of Finance, in consultation with the relevant portfolio holders, are to undertake the preparatory work in relation to the savings and efficiencies built into the draft budget proposals, subject to any actions being rescinded should any budget options not be approved by 25 February 2010 Council.

Councillor Palethorpe addressed Cabinet and expressed disappointment that this important item had been obscured into a full agenda and that most of the public had now left the meeting. He felt that the paper was vague and hard to understand and did not explain how decisions were being arrived at.  He suggested that Cabinet recognise that they were the architects of change and not necessarily the victims of current circumstances.  He called for more clarity and wondered if his neighbours living in Bellinge would understand the details of the budget from this paper.

Councillor Clarke addressed Cabinet and agreed with Councillor Palethorpe that there was not enough detail in the paper to enable him to comment properly.  He felt that the paper was not understandable for the public and therefore it would be hard to have a proper consultation.  There were also unresolved issues relating to proposed savings that had not been implemented and the impact in respect of next year if these savings were not achieved.  He commented on the rise in fees for cemetery and sports and then highlighted a figure for the investment in community clean-ups, which he felt was work that the Council should be undertaking as part of their statutory services.

Councillor B Hoare pointed out that Overview and Scrutiny would scrutinise the budget but Councillor Clarke was not convinced that this could be properly achieved given the small resources available to Overview and Scrutiny.

Councillor Mildren addressed Cabinet stating that the start of the consultation period was not easy with all three budgets being contained in one paper and he agreed that there was little detail on which to pass comment.  He made a plea that when the budget was presented to council, standing orders be raised in order for a full debate to ensue. He then commented on the proposed rise in cemetery and other fees that would directly hit the frail, elderly and disabled.

Councillor Davies addressed Cabinet and suggested there may be issues with the consultation owing to the vagueness of the content.  He commented on proposed staff cuts that could affect council services.  He then went on to comment about proposals to cut CCTV coverage and cited a recent incident in Rectory Farm when there had been no CCTV coverage of an incident.  He was concerned that, in this recession, the council seemed to be failing to support residents by increasing council tax above the rate of inflation.

As Portfolio Holder for Finance, Councillor Perkins presented the report to Cabinet.  He commented that in addition to a 15-page report, there were also 14 pages of detail included in the appendices.  He confirmed that information would be going out regarding consultation meetings and that interested parties could quiz members and raise comments then.  Referring to the proposed cuts in CCTV coverage, he commented that CCTV usage would be realigned to crime hotspots. With a ½% increase in the Government’s support grant and a 1.3% RPIX inflation, raising council tax by 2.47% was not passing on the full cost.  Efficiencies would have to be made to address the shortfall.

The purpose of the report was to present the draft budget proposals for consultation and to approve the Council’s draft Capital Strategy.  Councillor Perkins explained that the council tax increase on a Band D property would be equivalent to 10p per week.  Even with the increase there would have to be changes in the net spend of the Borough.  He highlighted the intention to maintain the grant to the voluntary sector and not to increase the daily car parking charges.  He felt that whichever political party was successful in the forthcoming general election, there would be pressure to reduce public expenditure.  The Council would continue to progress towards becoming ‘excellent’.  Efficiency savings were essential with the impact of the support grant being miscalculated with an underestimation of the town’s population by about 8,000. Partnership working with the police and PCT would continue. Although the rent increases would not be known until February, the Housing Revenue Account had proposed efficiency savings of £¾ million.  There was a clear framework for capital funding as set out in the appendices to the report.  He stressed the importance of the consultation leaflet being distributed and it was noted that there were to be a series of events around the town to encourage public participation.  He recommended acceptance of the recommendations as set out in the report.

Councillor B Markham commented that the list of efficiency savings as detailed in the paper was quite clear.  He was confident that the efficiency proposals would offer better value for money for the people of Northampton.

Councillor Church referred to this budget as being an example of the way in which the Council had transformed itself over the previous three years. In spite of the reduced funding available, this Council had become more efficient and effective and was determined to protect font line services.

Councillor Perkins then thanked officers for rising to the challenge to help the Council work towards becoming excellent.

Councillor B Hoare confirmed that the efficiencies being delivered were a demonstration of the way in which the Council was transforming itself financially.  Front line services were being protected with fee increases only where necessary and appropriate.  He gave assurance that Cabinet was mindful of people on fixed income. He felt that the strategic business reviews were key for the future maintenance of services and there would be further consultation to establish ways to involve all interested parties.

RESOLVED

1.      That the Cabinet’s General fund draft budget proposals for 2010/11 and indicative budgets for 2011/12, and 2012/13 as summarised in Annexes A to E be approved for public consultation.

2.      That the proposed council tax increase of 2.47% for 2010/11 and the indicative 2.47% for 2011/12, and 2012/13 be approved for public consultation.

3.      That the Cabinet’s draft capital programme and financing as detailed in annexes I, J, and K be approved for public consultation

4.      That Cabinet approve the draft Housing Revenue Account (HRA) budget excluding charges, subsidy and rents.

5.      That the draft Capital Strategy at appendix L be approved for consultation.

6.      That the consultation leaflet be delegated to the Assistant Chief Executive in consultation with the Leader and Portfolio Holder for Finance for approval.

7.      That the Chief Executive and Director of Finance, in consultation with the relevant portfolio holders, undertake the preparatory work in relation to the savings and efficiencies built into the draft budget proposals, subject to any actions being rescinded should any budget options not be approved by 25 February 2010 Council.