The proposals described in the budget setting report will, if approved by councillors, form the basis of the council’s budget for 2016-17.
The report proposes using £3.7m from general reserves, which at the start of 2015-16 were £11.5m, to invest in work to transform how the council delivers services in order to strengthen its financial future.
This will include a programme of work that will introduce new methods of delivering services, in particular shared services and trusts that allow the council to continue to deliver good services with fewer resources.
Similarly, an office accommodation strategy will aim to reduce the amount of space occupied by the council to achieve long-term revenue savings and free up substantial capital receipts within the next two years, while ensuring that the council’s accommodation needs are more efficiently provided for.
Proposals for making savings of £589k in 2016-17 are also set out in the report as part of an overall savings target of £4.2m over the next five years.
A reduction in core funding to the council from the government is a significant element of the savings requirement.
This year’s local government finance settlement was announced on 17 December and the government indicated that it would reduce central support to the council by £1.06m – a reduction of 15% this year and of 53% since 2010-11.
The council is investing in the development of its existing property holdings to increase the income it generates from these assets. The developments will be funded from existing cash balances and the additional income will be used to pay for services. In some cases this will also result in the delivery of more housing at sub-market rents to help tackle Cambridge’s housing crisis.
The council is working closely with neighbouring authorities on a programme to share services they have in common. Already, waste collection, ICT, building control and legal services have been shared which have cut operational costs. Opportunities to share more services, including finance, are being looked at now.
The report also proposes a range of initiatives including:
- Funding street lighting and Shopmobility services in the city that are earmarked for funding reductions by the county council;
- Investing more in campaigning against domestic violence
- Putting more money into tackling homelessness
- An additional sum to fund the next stages of the Anti-Poverty Strategy, such as more action to help credit unions and support organizations like the Citizens Advice Bureau
- Investing in reducing the council’s carbon footprint through the Climate Change Fund.
An increase of just under 2% in Council Tax, which for an average band D property would mean an extra £3.52 per year, is proposed in the budget setting report.
Cllr George Owers, Executive Councillor for Finance and Resources, said: “This year we are proposing to build on the work of the past 12 months to invest in initiatives that will help to secure the council’s finances.
“As the government continues to reduce funding year-on-year we are becoming ever more creative in order to protect those basic frontline services that the people in greatest need in our city rely on.
“By using some of our reserves we will be able to look at changing the way we provide some services to become more efficient – often by providing services with other councils.
“We are also putting forward proposals for investment in areas that have a huge impact on people’s lives, including keeping the lights on in the city, tackling homelessness and pursuing our Anti-Poverty Strategy to address inequality.
“All of these things go together towards creating one Cambridge – fair for all.”
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.
Notes
1.Reports presented to council committees are available on the council’s website: http://democracy.cambridge.gov.uk/ieDocHome.aspx
2.The budget setting report proposes an increase to Council Tax that means a household living in an average band D property would pay £180.27 in 2016-17 compared with £176.75 in 2015-16.
3.The council also collects income from council housing rents but this is kept in a separate account and can only be spent on housing.
4.The council’s budget setting report is based on the financial strategy set out in the Mid-year Financial Review (MFR) which was approved last autumn.
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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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