Issue - meetings

To consider the recent announcement of the council’s provisional Local Government Settlement for 2012/13

This item had not been circulated five clear days in advance of the meeting. The chair agreed to accept this item as urgent because of the significant impact of the provisional settlement 2012/13 on the council’s budget and resource planning process.

RESOLVED:

1.  That the provisional local government settlement for 2012/13 which was published on 8 December 2011 be noted.

2.  That the confirmation of the payment of New Homes Bonus to the council in 2012/13 in so far as £1.5m is allocated to support general fund services be noted.

3.  That it be noted that the issues in the report and subsequent analysis will form the basis of a formal response to the consultation on the provisional local government settlement which must be submitted to government by 16 January 2012.

4.  That the amendment to the medium term resources strategy to reflect the change in housing revenue account resources set out in paragraph 176 of the report be agreed.

5.  That the establishment in principle of a £1m community restoration fund be agreed for 2012/13 to support those areas most affected by the August disturbances (paragraphs 109 - 114 of the report).

6.  That it be noted that because government funding beyond 2012/13 is not known, and is unlikely to be announced until November 2012, the finance director proposes that a single year budget for 2012/13 only will be set.  The report sets out changes that are likely to impact on 2013/14 and beyond, but at this stage cannot be quantified. Officers will report back at the earliest opportunity once any announcements are made.

7.  That the  announcement by the government of a further council tax freeze grant for 2012/13 be noted, as outlined in paragraphs 32 to 34 of the report.

8.  That the medium and long term impact of accepting the council tax freeze grant on the council tax base be noted, especially in the context of the grant being removed from 2013/14, as described in paragraphs 33 and 34 of the report.

9.  That the budget principles agreed by cabinet on 21 September 2010 be confirmed, supported by the ten fairer future promises agreed by council assembly on 6 July 2011, which will continue to guide and underpin the work of officers in arriving at a balanced budget in February 2012.

10.  That officer recommendations on the 2012/13 budget and comments invited on the proposals from stakeholders and scrutiny be noted.

11.  That taking all the issues in the report, the finance director be instructed to report back to the cabinet at its meeting on 24 January 2012, and after the overview and scrutiny meeting on 9 January 2012 on the budget for 2012/13.