Agenda item

Further to Minute 131 of the Cabinet, the City Council considered a report of the Strategic Management Board, which outlined the proposed final revenue budget for 2015/16, following a period of consultation on a range of budget options which were previously considered by the Cabinet on 2 December 2014.

The allocation of Government funding for 2015/16 was confirmed in the Local Government Settlement announced on 3 February 2015.  This was broadly in line with previous expectations and incorporated a headline reduction in Revenue Support Grant of £24m (15%) from 2014/15 levels.  In overall terms, the reduced Government funding was equivalent to a like-for-like reduction of £638 for every Coventry household between 2010/11 and 2015/16.

In line with its Medium Term Financial Strategy, the Council has continued to meet the challenge of significantly reduced resources through its programme of projects under the abc (A Better Coventry) banner.  The report reflected a new phase of transformation incorporating the Kickstart, Customer Journey, City Centre First, a new Workforce Strategy and Doing Things Differently projects.  The report incorporated savings within these programmes plus some expenditure proposals and pressures which together produced a balanced budget position for 2015/16.

This package of changes would allow the Council to continue to deliver its key policies, confirmed in the Council Plan approved on 14 January 2014.  As part of this, the Plan acknowledged the reductions in resources that faced the City Council and the need for the Council to reduce costs, maximise income and the use of its assets and work in a flexible and adaptable manner.  These themes were reflected within the transformation plans, which would also encompass the need for the Council to revise its expectations and those of its citizens and taxpayers in relation to the range, level and location of services that will be delivered in the future.

Despite the financial pressures it faced, the Council was maintaining an ambitious approach to kickstarting the Friargate business district, implementing the Coventry Investment Fund proposals and the leading drive for economic growth and regeneration.  The financial foundations for taking forward these initiatives had been reported within existing decisions and were noted subject to specific recommendations within the report.

The proposed rise in Council Tax levels was just below the limit set by the Government, beyond which a referendum would be required.  The referendum limit had been set at 2% and the recommended Council Tax rise was proposed just below this at 1.9%.  This option made a modest amount of resources (£1.9m) available to the Council in the short-term and guaranteed the long term security of this funding to help protect services provided to the people of Coventry.

The report also proposed a Capital Programme of £118m, compared with the current projected 2014/15 programme of £124m.  The proposals included continued significant investment in highways and public realm works programmes and construction of the Council’s new administrative office building in the Friargate Business District.  The 2015/16 Programme required £42m of funding from Prudential Borrowing, £31m of which related to the Friargate building and the Coventry Investment Fund.  A further £7m related to non-scheme specific borrowing resulting from spending decisions made in previous years.  It was noted that there was a strong likelihood that non-specific borrowing requirements would be avoided in 2015/16 as a result of either in-year re-profiling of expenditure above the 5% re-scheduling level or as a result of other additional funding being received in-year ahead of the need to spend.  In addition, the Executive Director of Resources would continue to recommend to members an intention to reduce the overall need to borrow, by applying uncommitted revenue resources or capital receipts as they arise, which would reduce capital financing costs over the longer term.  It was also intended that close control should continue to be exercised on the approval of any new capital spending commitments in the coming years.

The Council was also required to approve its Treasury Management Strategy, its revised Investment Strategy and Prudential Indicators and these were incorporated within the report submitted.

An amendment, as detailed in the Appendix to these minutes, was moved by Councillor Sawdon, seconded by Councillor Blundell and lost.

RESOLVED that the City Council:

(1)  Approve the spending and savings proposals in Appendix 2 of the report submitted.

(2)  Approve the total 2015/16 revenue budget of £238m as set out in Table and Appendix 4 of the report, established in line with a 1.9% City Council Tax increase and the Council Tax Requirement recommended in the Council Tax Setting Report.

(3)  Note the Executive Director for Resources’ comment confirming the robustness of the budget and adequacy of reserves, as detailed in Sections 5.1.2 and 5.1.3 of the report.

(4)  Approve the Capital Programme of £118m for 2015/16 and the future years’ commitments arising from this programme of £244m in 2016/17 to 2019/20, as detailed in Section 2.3 and Appendix 5 of the report.

(5)  Approve the proposed Treasury Management Strategy for 2015/16, as detailed in Section 2.4 of the report, the revised Investment Strategy and Policy at Appendix 6 for immediate implementation and the prudential indicators and limits described in Section 2.4 and summarised in Appendix 7.

Notes: 

(a)   In accordance with Minute 127 above, a recorded vote was taken in respect of the amendment referred to in Minute 131 and 132 above

The Councillors voting for and against the amendment were as follows:

Result:  8 for

  37 against

   0 abstentions

(b)    In accordance with Minute 127 above, a recorded vote was taken in respect of the substantive motion referred to in Minute 131 and 132 above

The Councillors voting for and against the substantive motion were as follows:

Result:  38 for

  8 against

  0 abstentions