The Portfolio Holder for Finance and Resources introduced a report setting out the major financial pressures the Council was likely to face over the next ten years, together with a proposed strategy for setting a balanced and sustainable budget for 2014/15 and beyond.  The Council had an excellent track record in identifying, planning for and addressing financial challenges.  In light of the challenging financial position facing all authorities three years ago, for 2011/12 the Council produced a 10-year budget together with a four-year savings plan for the first time. 

The Portfolio Holder reported that this would be the fourth year of using the current Business and Financial Planning Strategy that included the 10-year budget which had proved successful to date and put Sevenoaks District Council in a much stronger financial position than many other Councils. 

The assumptions presented to Cabinet used the latest information available and were intended to start the debate. The assumptions would be updated as more accurate information became available during the process.

The overall emphasis was on building on the strong framework provided by the 10-year budget, whilst taking into account any new Government funding and policy announcements as well as changes in the economy that had an impact on budget assumptions.  The report also provided Members with the proposed timetable for the budget setting process.

The Leader of the Council reported that the Government was considering two options for the New Homes Bonus.  Option (a) was a 40% top slice from the funding received by all Authorities.  This was the ‘worst case scenario’ for SDC and was the option that would be reflected in the budget.  Option (b) was that County Councils would lose 100% of their New Homes Bonus and the District Council proportion would be cut by 18.9%.  The New Homes Bonus had been intended to support local councils in providing services to local people.  The consultation was on-going and no decisions had been taken.

Public Sector Equality Duty

Members noted that consideration had been given to impacts under the Public Sector Equality Duty.

Resolved: That:

(a)   The ten-year financial planning approach and principles set out in the report be endorsed;

(b)   The Advisory Committees be requested to review Service Plans and advise Cabinet of possible growth and savings options;

(c)    Officers be requested to continue to review the assumptions in the report and report back to Cabinet on 5 December 2013; and

(d)   The budget timetable set out in Appendix A be noted.