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Greater Manchester Agenda TRAFFORD BOROUGH COUNCIL Item Report to: Executive and Council Date: 20 February 2013 Report for: Decision Report of: Executive Member for Finance and the Director of Finance Report Title Executive’s Revenue Budget Proposals 2013/14, the Indicative Revenue Budget Proposals 2014/15, and Proposed Capital Programme 2013/16 Summary This report sets out the Executive’s proposed revenue budget for 2013/14, and included for the first time are the indicative revenue budget proposals for the following year, 2014/15. It also outlines the proposed capital budgets for 2013/16. Overall the proposals will see the 2013/14 revenue base budget decrease by £(11.063)m, or (6.5)%, to £158.947m, when compared to an adjusted 2012/13 base budget of £170.010m. Taking into account budgetary pressures of £21.746m, total savings are proposed of £(18.685)m, with no increase in the level of Council Tax. Therefore, the Council will be able to take advantage of £(0.886)m of additional grant for a two year period. The various cost pressures and investments are detailed in section 7 of the report. The major components include: Reduction in Government Funding £9.8m Inflation £5.2m Demography £2.5m Levies £1.8m The savings put forward, £(18.7)m to achieve a balanced budget are summarised in section 7 and full details appear in the service schedules in annexes G to K. Similar information is available for the indicative budget for 2014/15. The Director of Finance has set out his view on the reasonableness and robustness of the budget, and the availability and adequacy of reserves, in annex M. 1 The proposed budget for 2013/14 sets out the planned resource availability for the Council. The Executive’s proposals are made having had regard to the findings of a public consultation exercise and a review by the Overview and Scrutiny Committee. A number of decisions on savings, following public consultation, are required and will be taken by the Executive on 4 March 2013. Recommendation(s) It is recommended that the Executive propose to the Council to approve: That the net Revenue Budget for 2013/14 is £158.947m, a decrease of £(11.063)m, or (6.5)%, when compared to an adjusted 2012/13 base budget of £170.010m; That the minimum level of General Reserve for 2013/14 be set at £6m, the same as in 2012/13 (Annex M); That there is no increase in the proposed Council Tax level for Trafford related services in 2013/14 (the valuation bands are as detailed in Annex A); That the fees and charges be set per the booklet available alongside this report on the Council‟s website, including specifically: an increase in the weekly charge for Allotment fees in 2014/15 (12 month notice period is required); cease contributions to Mersey Valley and Bollin Valley Partnerships in 2014/15 (12 month notice period required); the financial impact of which are all included in the budget proposals in the report; That the overall Capital Investment Programme level of £77.0m be approved (Annex L). That the Prudential Borrowing Indicators be approved (Appendix 1, page 14, of the attached Treasury Management Strategy In recommending the above to Council, that the Executive will also present to Council: The objective assessment by the Director of Finance of the robustness of budget estimates and adequacy of the General Reserve (Annex M). 2 Contact person for access to background papers and further information: Name: Cllr Sean Anstee Ian Duncan Extension: 4884 4884 Background Papers: Budget Report 2012/13 Draft 2013/14 and Indicative 2014/15 Revenue Budget Proposals and draft Capital Programme 2013/16 of 22 October 2012 Relationship to Policy Value for Money. Framework/Corporate Priorities The proposed budget for 2013/14 and indicative budget for 2014/15 cross cuts all key priorities and policies. Financial The report sets out the proposed budget for 2013/14, with indicative financial plans for 2014/15. Legal Implications: It is a statutory requirement for the Council to set and approve a balanced, robust budget and council tax level. Budget proposals take account of various legislative changes as they affect Council services. The Council has begun the statutory processes associated with the effect of the proposed budget on staffing levels. Equality/Diversity Implications The likely impact of the budget proposals on issues of equality and diversity has been assessed and where appropriate will be mitigated. Sustainability Implications None arising out of this report. Staffing/E-Government/Asset Human Resources – statutory processes have Management Implications begun and the impact on staffing is still subject to consultation. Risk Management Implications An impact assessment of each budget proposal is undertaken as part of the overall budget setting process. Health and Safety Implications An impact assessment of each budget proposal is undertaken as part of the overall budget setting process. Consultation A budget consultation has been carried out, the details and results of which are shown in Section 2 of this Report. Reasons for Recommendation To enable the Council to set its Revenue Budget and Council Tax for 2013/14. Key Decision This is a key decision currently on the Forward Plan: Yes 3 Finance Officer Clearance ……ID………… Legal Officer Clearance …JL…………… CORPORATE DIRECTOR’S SIGNATURE (electronic)………………………………………………… To confirm that the Financial and Legal Implications have been considered and the Executive Member has cleared the report. 4 Executive’s Revenue Budget Proposals 2013/14, indicative Revenue Budget Proposals 2014/15, and Capital Programme 2013/16 20 February 2013 5 INTRODUCTION BY THE LEADER OF THE COUNCIL COUNCILLOR MATTHEW COLLEDGE Welcome to the Executive‟s budget proposals for 2013/14 and indicative budget proposals for 2014/15. Following the Coalition Government‟s first emergency „austerity‟ budget in July 2010 to address the national deficit, these proposals will reflect the fourth and fifth austerity budget since the economic crisis of 2008. The effects of the challenging financial situation that the UK finds itself in has meant that Trafford Council has to deliver the services that we all rely on within significantly reduced resources. Over the next two years we expect Government support to reduce by £13.7 million, with an additional £1.6m of pressure caused by the changes to the Council Tax benefit system. It is also expected that austerity budgets will continue for a few years after this, and it is unlikely that funding and income will keep pace with rising costs and community need for many years after that. In the past we have managed to find efficiencies and new income to reduce the impact on services, which have reduced the budget deficit by up to three quarters over the last three years. For the next two years less than half of the savings required are expected to come from policy choices that impact on front line services. We are proud that we have the 20th lowest Council Tax in the country, and that we have managed to have no Council Tax rise in two years. We will continue to strip out inefficiencies, introduce new ways of delivering services through innovation and new technology and by working collaboratively with other organisations and the community itself. Volunteers and voluntary organisations have been working with and alongside the Council for many years, from Friends of Parks organisations to mentors within Youth Offending Service and volunteers on Justice panels. In December 2011 we launched a campaign to strengthen the links, recognise the goodwill and good works, and to enable more people make that first step to a personally rewarding and enriching contribution to the community. The campaign involved over 500 events across the Borough with over 15,000 volunteers participating. This included the first ever Volunteer Awards at a neighbourhood event in March 2012. We are now working closely with a third sector organisation to harness the interest and commitment we found. However, we already have 39 trained and committed volunteers extending our library service, and the Olympics attracted another 600 local volunteers which were essential in making it such an enjoyable, safe and successful event. It is clear that the Council cannot continue to provide the same services in the same way into the future, and that a root change in the provision of services to the Community is needed. With this in mind, alongside the draft budget proposals we are also announcing a new vision and direction for the residents, businesses and other stakeholders for the Borough of Trafford. Together, with community leaders, volunteers, charities, public and private sector partners we will build on the success in our community: 6 Your Environment We have one of the best performing and low cost waste collection services in Greater Manchester. The Borough has the lowest number of people killed or seriously injured road casualties in Greater Manchester. Your Community 2012 saw the introduction of e-books and Trafford is the first authority to loan out e-readers. Crime reduced by 15.1% in the first six months of this fiscal year (April to September), with nearly 900 less victims of crime. Anti-social behaviour has fallen by 30.1%, over 1,300 less incidents, and violent crimes have reduced by nearly 11%. In October 2012, the Council‟s CCTV service has been awarded a Divisional Commander‟s award by Greater Manchester Police for their collaborative work and making an „outstanding contribution to front line policing‟. In addition, the Environmental Health Team has also been working closely with the Police, and together have assisted in reducing commercial robberies in the Borough by 52% in 2011. Trafford is the safest place in Greater Manchester, with the highest level of public confidence and satisfaction.
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