The Chief Finance Officer presented a report which was the first report for the 2015/16 budget setting process.  It was the 5th year of using the current Business and Financial Planning Strategy that included the 10-year budget which had proved successful to date and put SDC in a much stronger financial position than most other Councils.  He advised that the report was intended to start the debate and the assumptions would be updated as more accurate information became available during the process.  Last year the government provided illustrative funding figures for 2015/16 which had been included in the budget, however with it being an election year it remained to be seen what announcements would be made over the coming months.

Since the last 10-year budget had been agreed at Full Council in February, changes that had been made since then were: rolling 10-year budget on for one year and using the Budget Stabilisation - Reserve and Financial Plan Reserve balances.

Appendix B to the report showed a shortfall of £647k (i.e. £65k pa) however, the position was likely to change as Chief Officers were currently reviewing the growth and savings requirements for their services.  These would be reported back to the relevant Advisory Committees.

The report would be considered at Cabinet on 11 September 2014, and in the autumn the Cabinet Advisory Committees would get the opportunity to review the Service Plans and Service Change Impact Assessments (SCIAs).  A budget update report would then be submitted to Cabinet in December which should almost finalise the budget subject to any late announcements coming from central government.

In response to a question concerning whether the potential setting up of a trading company had been taken into account, the Chief Finance Officer advised that no assumptions had been made for additional income at this stage.

A Member was not happy with the assumption that Council Tax would be increased by 3% in 2016/17 onwards, which was viewed as unrealistic.  Members debated this issue, noting that other ways to make up the shortfall would be service cuts.  The Chief Finance Officer advised that the Government had set a referendum limit of 2% up to 2015/16 and had not stated what the likely position would be going forward.  The Chairman pointed out that Council Tax assumptions had been agreed by Members at Full Council in February.

Councillor Firth moved, and it was duly seconded that the ten year financial planning approach and principles set out in the report be endorsed subject to the Council Tax budget assumption being restated to 2% for 2016/17 onwards.  The motion was carried.

Action 2:  The Chief Finance Officer to produce details of the impact of the lower Council Tax assumption to Advisory Committee Members.

Public Sector Equality Duty

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

Resolved:  That it be recommended to Cabinet that the ten year financial planning approach and principles set out in the report be endorsed subject to the Council Tax budget assumption being restated to less than 2% for later years.