Agenda item

To submit the Executive’s Proposals for a medium term revenue budget strategy, interim capital plan and revenue and capital budgets for 2014-15.

Councillor H Eifion Jones, Portfolio Holder for Finance presented the Executive’s proposals for a medium term revenue budget strategy, interim capital plan and revenue and capital budgets for 2014/15.

He thanked the Head of Function (Resources) and her staff for their work in preparing the budget under difficult financial circumstances. He thanked the Chief Officers and the Political Groups who responded positively to the challenge and also to the Shadow Portfolio Holder, Councillor John Griffith for his support. The challenge next year would be greater still and it was intended to commence the budget and consultation process far earlier than had been the case this year. 

Reported – That the Executive’s final budget proposals for 2014-15 were contained as follows:-

●  Table A – Medium Term Revenue Budget Strategy

●  Table B – Revenue Budget 2014-15 and change from 2013-14

●  Table C – Capital Budget 2014-15

●  Table CH – Prudential and Treasury Indicators

The following details were provided within the Executive’s report with regard to following the details of the Budget Procedure Rules:-

●  if the Council had adopted a budget strategy, whether the proposed annual

    budget conformed to that strategy,and details of any departures;

●  the proposed Council Tax for the year;

●  any proposed transfers to or from financial reserves;

●  a summary of proposed expenditure by service;

●  details of significant changes to service delivery implied by the budget;

●  the extent to which the proposals took account of reports of Committees;

●  the extent to which the proposals took account of any consultation that had been undertaken;

●  details of any other significant differences between the initial and final proposals

●  the Executive’s proposals for virement provisions during the year;

●  proposals for borrowing;

●  any other statutory matters to be decided by the full Council.

Councillor John Griffith, Shadow Finance Portfolio Holder thanked Councillor H.Eifion Jones and the Head of Function (Resources) and her team for their valued contribution in preparing the budget. This had been a very difficult budget bearing in mind all the implications for Departments, staff, services and the ratepayers. A 5% cut to the budget equated to some £7.5m less to spend on services in the coming year.

Although supportive of the budget, he did have some concerns as there were numerous references in previous reports to the number of risks that could impinge upon the proposed budget. There was for example no certainty that some of these savings proposals would commence on 1^st April which would entail immediate pressure to keep within budget. He felt it to be imperative that the Council should prepare for the 2015-16 budget in good time and that the consultation period should commence far earlier than had been the case.

He paid reference to the following matters of concern to him within the budget:-

●the condition of the highway network on the Island, especially in rural areas;

●the intention to raise parking fees and seasonal tickets which would affect the elderly and have an impact upon trading;

●bus service cuts which would affect those parts of the community that were unable to afford cars;

●the need to continue funding CCTV cameras as they brought peace of mind to residents and business people and in preventing anti-social behavior;

●pleased to hear that the proposal to reduce the school admission age would not be implemented this September and that the LEA would be consulting further on their long term plans in this respect;

●the need to claw back the amount of borrowing and thus reduce the resultant interest costs to the Authority.

The Leader thanked the Shadow Executive for their assistance in the preparation of the budget. Next year there would be even more difficult decisions to make and to this end dates had already been pencilled in to commence discussion on the 2015-16 budget. It was also hoped to commence the period of consultation in October which would then give sufficient time to scrutinise the budget proposals.