The Portfolio Holder for Finance & Resources reported that the tabled update followed on from the report to Cabinet on 5 December, and contained several changes including the Government Support Settlement which was finally published on 18 December 2013.  The Government Support figures had been drastically reduced, even more than had previously been predicted and these changes resulted in a deficit of £3m over the 10-year budget period.  Proposals for savings to remove the deficit had also been tabled.

The Chief Finance Officer ran through the main points on the tabled update. 

A Member addressed the Cabinet, as Secretary of the Kent Association of Local Councils, explaining he had taken the lead and encouraged Town and Parish Council to raise their precepts and ready them for the loss of any ring-fenced money from the Revenue Support Grant.  Those that had not heeded this advice would be hit by the loss of this expected income.  Whilst he understood that as there was no evidence of a ring-fenced amount he felt that morally the money should be passed on.  The perception was that there was Government intention that some money be passed on.

The Chairman advised that when it was clear the Revenue Support Grant (RSG) had been reduced and that there was no ring-fenced amount despite what had been stated by Brandon Lewis MP to NALC, he had asked the Chief Finance Officer to check the position of other authorities.  Sevenoaks was one of only a few fully parished in Kent.  If money was paid from the current RSG and it continued to be reduced at expected levels, it would get to the point where Parish and Town Councils were being paid out of the Council Tax.  He had written a letter to Brandon Lewis MP asking where the money was as it was not ring-fenced.  As the money was not ring-fenced it was not there and there was nothing to be passed on.  He stated tat he had been clear in all his dealing with Towns and Parishes that if the money was identified it would be passed on, but no money had been identified.  The Chief Executive would be meeting Parish and Town Clerks the following week, and after that the Chairman would be holding a meeting to try and ensure that working relationships were not soured by the Government’s failure to ring-fence any money.  He would let everyone know the response he received from Brandon Lewis.  No-one had made a decision not to pass the money on, there was no money to pass on, because there was no money identified for Town and Parish Councils within the RSG received.

The Chief Executive advised that the Council had been the first to announce last year,  that the full amount received would be passed on, however this year there was no ring-fenced money and it was not possible to see where this money was.  If any money were to be passed on it would leave an even greater shortfall in the Council’s budget.

A Member stated that he thought the Minister definitely needed to clarify the position and work needed to be done to rebuild the relationships with Town and Parish Councils.

Looking at the proposed savings, a Member asked why these had not been brought forward before.  The Chairman pointed out that some of these had been savings already being worked on (e.g. Building Control shared working arrangements) and with regards to planning it happened that a some staff had given notice and provided the Chief Officer with a chance to look at restructuring without redundancies.  It was also pointed out that the amount recommended to be put in to the Financial Plan Reserve by Cabinet in December was being used to achieve the required amount.

In response to a question, the Chairman stated that when you looked at what the Government wanted to achieve, any growth was in housing and business, therefore they would do their best to drive this forward and be pushing local government towards a reward based system rather than a grant based system.  It was the 40% that was guaranteed for two years, the NHB schemes wold remain in place.

Cabinet Members were happy with the proposed savings to be put forward for consideration in the budget.