Report of the Head of Finance attached.

This report will present the Council’s Medium Term Financial Strategy for 2013/2014 to 2017/2018, and the 2013/2014 Budget for consultation.

The Head of Finance submitted a report (previously circulated, now appended) concerning the Council’s Medium Term Financial Strategy for 2013/2014 to 2016/17. It also presented the 2013/14 Budget for consultation.

Councillor Ed Turner introduced the Budget and explained the background.   He highlighted the fact that the Council has delivered £7 million of efficiency savings, which was a testament to the hard work and commitment of staff across the organisation.  Overall, officers had now done a great job in preparing a budget that reflected priorities laid out by Councillors.

Councillor Price pointed out that the Budget before the Board was a budget until 2016/17, and that of necessity it contained assumptions about Government funding. It contained some contingencies and aimed to be realistic. As well as being about money, the budget reflected political priorities, in that it sought to tackle the worst problems of deprivation within the City, and to defend poorer communities in an effective manner.

Councillors Coulter, Sinclair and Curran all commended the budget for its commitment to both the elderly and the young within Oxford.

Councillor Jean Fooks asked for further information about the Dial A Ride Scheme. Councillor Turner explained that the money in the budget for this was a contingency to enable officers to negotiate an increased service for Oxford – the City Council would invest only for services additional to those provided by the County Council.

In answer to a question, Lindsay Cane (Legal Services) confirmed that any agreement between the County Council and District Councils about the Dial a Ride service was a contractual one – there was no statutory duty for District Councils to be involved with this.

In answer to further questions from Councillor Fooks, Councillor Turner explained that it was not possible to provide outturn figures for the current year’s budget because the year had not yet finished. Councillor Curran added that, as far as Educational Attainment was concerned, it had been intended to have 10 schools participate, however 12 had shown interest, of which 3 had not yet signed up to the scheme (mostly because of personal changes at the school).  A briefing about the Youth Ambition Programme had recently gone out, and bids for the Social inclusion Fund would open shortly.

Councillor Turner further explained the various means (both electronic and other) by which the Council would consult with residents and stakeholders about this budget.

Resolved

That the following is recommended to Council:-

a)     Agree the Council’s Medium Term Financial Strategy for 2013-14 to 2016-17 and the 2013-14 General Fund, Housing Revenue Account and Capital budgets for consultation as set out in Appendices 1-7 of the report;

b)     Agree  to consult on an increase in Council Tax of 2% for 2013/14 as set out in paragraph 28 of the report;

c)      Agree to consult on an increase in council housing rents for 2013/14 of 4.61% utilising the national  convergence formula, as set out in  paragraph 61 of the report;

d)     Agree to consult on an increase in council house service charges for 2013/14 of 3% and remove the service charge limiter subject to a cap on the increase of £1 per week per annum on the increase as set out in paragraph 61 of the report;

e)     Agree to consult on amendments to fees and charges as laid out in Appendix 7 to this report

f)        Agree to consult on the level of exemptions and discounts on empty homes and unoccupied properties as outlined in paragraph 21, noting that Exemption Class C is amended (as shown in bold below) so that the proposal is as follows:-

25% exemption for a time limit of 3 months, then full charge.