The Portfolio Holder for Finance and Value for Money introduced a report setting out progress made in preparing  the 2013/14 budget and updating Members on key financial information recently received.  The report showed that no further savings other than those set out in the four year plan were required to balance the budget for 2013/14; albeit the budget recognised some risks, including income.  The overall emphasis was building on the strong framework provided by the 10-year budget, whilst taking into account any new financial burdens and challenges in the economy that would have an impact on budget assumptions. 

Members noted that equalities assessments had been completed for all of the Service Change Impact Assessments (SCIAs).

The Group Manager – Financial Services provided an update on the changes that had been made to the 10-year budget since the Cabinet meeting on 6^th December 2012 which were outlined in Appendix A of the report.  Four income items were showing adverse variations in the current year and whilst these variations were being contained by other savings there were serious concerns that if the income levels continued there would no longer be adequate compensating savings elsewhere.

The Portfolio Holder for Finance and Value for Money stressed that government indications surrounding council tax support funding being included in the District Council’s overall grant settlement were speculative and that there was no guarantee of this.

The Chairman noted that the report outlined a number of “at risk” areas and reported that he had asked Officers to review the Big Community Fund.  Currently money from the New Homes Bonus was used to support the Big Community Fund, however in future funds from the New Homes Bonus would be placed into the Budget Stabilisation Fund.  The Chairman reminded Members that there was no guarantee that the New Homes Bonus would continue in future years and this appeared to be a prudent use of the funding to ensure that there was good budget stabilisation in the future.  Members agreed that this appeared to be a sensible use of the New Homes Bonus and supported the proposals that had been put forward.

The Chairman also reported that a Minister within the Department for Community and Local Government (DCLG) had recently made a verbal statement regarding Council Tax Support and had announced that in 2013/14 there would be a further 8.5% decrease in funding.  This would impact both Sevenoaks District Council and the Town and Parish Councils.  Whilst there were no firm details of the proposals it was important that the Council had a healthy budget stabilisation fund in order to mitigate against the impact of any future proposals.

Members also noted that a significant amount of work would have to be undertaken on reviewing savings for the next year.  The Portfolio Holder for Finance and Value for Money had been asked by the Chairman to start work on identifying potential savings with a small group of Members.

The Chairman thanked the Portfolio Holder for Finance and Value for Money, the Group Manager – Financial Services and the Chief Executive Designate for the work they had undertaken on developing proposals for Members consideration.

Resolved: That Officers be asked to make the necessary amendments to the budget around use of the New Homes Bonus and provide a further update on 7^th February 2013.