There were no declarations of interest made in accordance with the Code of Conduct.

The joint report of the Chief Executive and Director of Finance and Transformation updated the Cabinet on issues relating to the setting of the Budget for 2014/15 together with the outcome of the examination of the draft Revenue Estimates and the Capital Plan review process undertaken by the Finance, Innovation and Property Advisory Board and the Overview and Scrutiny Committee.  It was noted that the Revenue Estimates as presented had been endorsed. 

A more detailed supplementary report prepared in liaison with the Leader and Cabinet Member for Finance, Innovation and Property was circulated in advance of the meeting.  It highlighted adjustments made to the 2013/14 revised estimates in respect of small business rate relief under the Business Rates Retention scheme and to the Capital Plan in respect of the funding of Disabled Facilities Grants and Housing Assistance.  The report examined the situation in relation to the Medium Term Financial Strategy (MTFS) and gave details of the necessary procedure to be followed in order to set the budget for 2014/15.

The report explained the components of the funding allocation in the final local government settlement published on 5 February 2014.  The Director of Finance and Transformation updated the position arising from the Government's offer of a council tax 'freeze' grant in 2014/15 (equivalent to a 1% increase in council tax) and the way in which the approach appeared to differ from that in previous years by building the funding into the spending review base line.

Members were advised of the Secretary of State's announcement that the referendum threshold had been set at 2% (including levies) for 2014/15 resulting in a 'trigger point' of 1.99%.  It was noted that the summary total for the 2014/15 estimates would be affected by the Council's decision on whether or not to accept the 'freeze' grant and thus the level of overall savings needing to be made.

Attention was drawn to recommendations from Advisory Boards regarding the levels of fees and charges to be implemented from 1 April 2014 which had been incorporated in the draft estimates.  Members were reminded of the approach to preparation of the Capital Plan, an updated summary of which was set out at Annex 7 to the report.

The report then described the remaining procedure to be followed in setting the budget for 2014/15 and calculating the council tax.  Consideration was given to the updated MTFS based on a council tax increase of 1.99% (the upper limit for referendum purposes) and a council tax freeze.  The Cabinet also deliberated on the most appropriate guidance to offer the Council as to the way forward for updating the MTFS for the next ten year period and setting the council tax for 2014/15.  Finally, the Director of Finance and Transformation explained the basis on which the statement as to the Robustness of the Estimates and Adequacy of the Reserves had been made. 

Members recorded their thanks to the Director of Finance and Transformation and colleagues for all their work in bringing forward the budget  ...  view the full minutes text for item CB 14/26

The joint report of the Chief Executive, Director of Finance and Transformation, Leader of the Council and Cabinet Member for Finance, Innovation and Property set out the requirements under the Local Government Finance Act 1992 for a billing authority to set an amount of council tax for each category of dwelling in its area.  Members were advised of the position concerning the determination of their respective precepts for 2014/15 by the major precepting authorities.

Consideration was given to a draft resolution identifying the processes to be undertaken in arriving at the levels of council tax applicable to each part of the Borough.  Reference was made to the debate that needed to take place regarding the relative merits of a freeze in council tax as opposed to an increase.  Accordingly, the resolution and information regarding the precepts of the other authorities would be reported to the full Council on 18 February 2014.

RECOMMENDED:  That the resolution be noted and the Council be recommended to approve a 1.99% increase in council tax for 2014/15.

The Chairman to move that the press and public be excluded from the remainder of the meeting during consideration of any items the publication of which would disclose exempt information.

There were no items considered in private.