To consider the draft Budget, updated Medium Term Financial Plan, the Housing Revenue Account (Landlord Service) and Capital Programme pertaining to the Corporate Resources Directorate only.  Information that is relevant to the other directorates will be considered in the other relevant OSC meetings.   Members are requested to submit their comments, observations and recommendations in respect of the Executive’s proposals with particular reference to the Corporate Resources Directorate proposals, to the meeting of the Executive on 09 February 2016.

Members are requested to bring their copies of the Executive report with them to the meeting (hard copies will not be provided).  The report is available at the following website:-

http://centralbeds.moderngov.co.uk/ieListDocuments.aspx?CId=577&MId=4921&Ver=4

The Chief Finance Officer delivered a report highlighting financial pressures, proposed efficiency savings, consultation timelines and a proposed increase to Council Tax of 3.95%, 2% being ring fenced for Social Care funding. The Committee were provided details of specific challenges and efficiencies identified within the Improvement and Corporate Services directorate, particularly with regards to staff restructuring, shared services and a fundamental review of procurement procedures. The Executive Member highlighted the need to ensure the impact of the Capital programme on the Revenue Budget was kept to a minimum and careful management of the sale of Capital Assets. The Executive Member confirmed plans to rebuild reserves as it was not sustainable to use them in the long term.

In light of the report Members discussed the following:-

·      The difficulties the Council faced in light of the government settlement and that any increase in Council Tax would not provide additional funds, but help mitigate the unexpected shortfall.

·      Whether the level of NNDR the Council was permitted to retain was guaranteed; the Chief Finance Officer confirmed that figures were estimates but as accurate as possible and Central Bedfordshire’s ability to attract business investment would help generate income.

·      Whether income from housing growth had been taken into account and the pressure on children’s services and adult social care as result of continued growth. The Executive Member was confident that housing growth figures could be maintained.

·      Concerns regarding the government settlement taking into account the Council’s reserves figures; the Chief Finance Officer confirmed that the settlement was calculated based on the Council’s capacity to raise council tax.

·      Concern that the 2% ring fenced precept for adult social care would set a precedent for further government interventions by way of extended ring fencing. The Executive Member confirmed that another authority had a precept for flooding which suggested a possible trend whenever specific financial pressures were identified.

·      The need to be proactive to secure appropriate business growth.

·      As regards the Landlord Business plan (HRA Budget) concerns that changes to social rent would impact revenue streams and the ability to deliver social housing.

·      The importance of maintaining investment as part of the Council’s ongoing Landlord business plan.

NOTED the report and endorsed the proposed efficiencies as detailed

within the Draft Budget, acknowledging the strong position with regards to debt repayment measures in the HRA.