The government yesterday (Thurs) indicated that it would reduce central support to the council by £1.03m – a reduction of 15% this year and of 53% since 2010-11.
The announcement covers 2016-17 and provides indicative figures for the following three years. The government is offering to guarantee a four year settlement to councils which have an efficiency plan. No details have yet been given to indicate what this plan should include.
In September, the council’s mid-year financial review showed that savings of £4.2m over the next five years would be necessary for the council to balance its budget.
Based on the information available there will be no significant change in this savings target. However, there is still considerable uncertainty over the future of some income streams, such as New Homes Bonus, where the government is to consult over future changes to the scheme.
The figure will be reviewed in detail in the light of the government’s announcement.
The council is set to publish its budget proposals for 2016-17 in the first week of January.
Cllr George Owers, Executive Councillor for Finance and Resources, said: “We are determined to continue to focus on managing our finances responsibly to balance the budget, minimise the need for cuts and invest in a fairer, more equal city.
“That task is only getting harder as government reduces the support it gives to councils each year. It’s clear from today’s announcement that the council will continue to face major financial challenges.
“Work is well underway on our budget for 2016-17 and we now need to work on finalising those proposals before the first week of January.”
The council’s budget setting report will be discussed at Strategy and Resources Scrutiny Committee on 18 January. A meeting of the full council will decide whether to approve the recommendations in the report on 25 February.
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Contacts
Cllr George Owers, (Labour Group) Executive Councillor for Finance and Resources, email george.owers@cambridge.gov.uk, tel: 07833 012979
Cllr Tim Bick (Liberal Democrat Group), Opposition spokesperson, email: tim.bick@btinternet.com, tel: 07720 413173
Cllr John Hipkin, (Minorities Group), Opposition spokesperson, email: castleindependent@gmail.com, tel: 01223 564126
Antoinette Jackson, Chief Executive, email: Antoinette.jackson@cambridge.gov.uk, tel: 01223 457001
Caroline Ryba, Head of Finance, email: caroline.ryba@cambridge.gov.uk, tel: 01223 458134
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Council considers budget plans after government grant announcement
18 December 2015
Cambridge City Council is working to take stock of the full implications of the government’s proposals for the level of grant it will give to councils for 2016-17.