Agenda item

To consider the Council’s draft budget proposals for 2013/14:

a)      Corporate Services Department

b)      Chief Executive’s Office

c)      Feedback from Overview and Scrutiny Panels and overall conclusions.

The Executive Member for Transformation and Finance and the Borough Treasurer introduced the Council’s draft budget proposals for 2013/14, which had been agreed as the basis for consultation with the Commission, Overview and Scrutiny Panels and other interested parties. The Executive would consider all representations made at its meeting on 13 February before recommending the budget to Council.

The Borough Treasurer informed Members that in December 2012, when the draft budget proposals had been agreed as a basis for consultation, there was a predicted funding gap of £1.7m. The Local Government Finance Settlement had resulted in a loss of £1.2m in Government grant over and above the budget forecast. However, the following additional savings had been identified:

• £115,000 reduction in expenditure on Looked After Children
• £250,000 savings resulting from responsibility for 2 year olds being transferred to the schools’ budget
• £200,00 reduction in the inflation contingency
• £138,000 savings resulting from the retendering of the Council’s insurance contract.
• £377,000 additional income from business rates retention.

The net effect of all the changes was a revised predicted funding gap of £1.9m.

Arising from Members’ questions and comments, the following points were noted:

• The Council was able to make a full pre-payment on its pension fund contributions for a further year so earning a higher discount than could be earned if it invested the money whilst making monthly payments. However, the Council was unlikely to have the cash resources available to pay all pension contributions in advance in future years.
• Although Bracknell Forest’s Council Tax was proposed to be frozen at present levels, it was anticipated that the Police, Fire Authority and some Town and Parish Councils would be raising their precepts resulting in increased bills for Bracknell Forest residents. A leaflet would be included with the bills sent to residents explaining how the bill was arrived at together with an article in Town and Country. However, it was acknowledged that many residents might not read the information provided.
• Details of the maintenance agreement for the new cremation equipment were reported.
• There was a sufficient underspend to cover the cost of the current works at Coral Reef. Any losses to income would be funded from contingencies.
• The £2.5m identified in the 2013/14 capital programme and further funding in future years for the Twin Bridges highways scheme was a proposal that would be subject to approval by Council when considering the budget.  Funding would need to be agreed before a detailed scheme could be drawn up. It was agreed to send a Member information regarding the proposed works. . The Environment, Culture and Communities Overview and Scrutiny Panel might review this further.
• Members complimented the Borough Treasurer on the clarity of his presentation of complex budget issues.

The Executive Member for Culture, Corporate Services and Public Protection and the Director of Corporate Services reported on the Corporate Services/Chief Executive’s Office draft budget proposals. The Assistant Chief Executive had tendered his apologies for being unable to attend the meeting. £137,000 budget pressures had been identified plus another £50,000 Council wide whilst £437,000 savings were proposed. The emphasis was on protecting services to residents, and increasing income where possible. Some staffing reductions were proposed, which would constrain the ability to deliver some objectives in the service plan.

Arising from Members’ questions and comments, the following points were noted:

• The income target for both the Outdoor Market and Market Street properties had been under-achieved for a number of years. The budget pressure of £58,000 had been identified as the Corporate Services Department could no longer meet this shortfall from elsewhere in its budget..
• It was agreed to send a Member a copy of the Council’s ICT Category Strategy detailing ICT expenditure together with details of expenditure on consultants.
• The proposed reduction in the Civic Service budget was based on underspends in previous years. It was agreed to give further consideration to this reduction and send a Member details of the budget.
• It was acknowledged that moving staff from Seymour House into Ocean House whilst accommodation works took place at Times Square would result in some delay and disruption. However, in the circumstances, it was the best option available.
• The proposed legal and surveyor’s fees for property transactions were in line with other local authorities and were broadly in line with commercial rates although some activities e.g. Section 106 Agreements, were not undertaken in the private sector. The fees were sufficient to cover costs.
• Members were informed of proposals for the replacement of the Council Chamber audio visual equipment which would include improved lighting and power. It was anticipated that the cost would be significantly less than the £43,000 estimate.

The Commission also received feedback from the Overview and Scrutiny Panels on their consideration of the draft budget proposals.

The Commission agreed that the draft budget be recommended to the Executive, alongside the comments made above.