At the Thanet District Council Cabinet meeting on 22 January Members
were updated with the Budget Monitoring Report for 2012/13 and
considered the Budget for 2013/14 and the Medium Term Financial Plan.
Cllr Rick Everitt, Cabinet Member for Financial Services, said: “I am
pleased that the council has been able to achieve greater savings than
had originally been expected in some areas.
“We had originally anticipated a cut in a major aspect of government
funding (the Formula Grant) of around 10% for 2013/14, however that
reduction will now be 7.4%.
“Together these movements have enabled us to recommend a freeze in the
TDC element of Council Tax for a further year, meaning that there will
still have been no increase in Thanet’s Council Tax for residents since
2010.”
However, the situation for the future is concerning as the Formula
Grant is likely to be slashed by 16.6% in 2014/15, more than twice what
the council had anticipated.
Ahead of this, due to inflation and unavoidable commitments, the council
has had to find savings of £1.6m in 2013/14 although it should now be
possible to cover these through savings and other measures already in
hand without affecting services.
In the area of the Housing Revenue Account there are proposals for a
rent increase of 3.1% for council dwellings in line with the
Government’s inflationary rates whilst savings are possible in
management fees. Rental income and reduced debt charges have enabled the
council to settle a significant loan account. There have also been
savings in relation to proposed housing works which are no longer
required.
The council’s capital programme has had to be scaled back to take
account of the national economic situation, and its effects on budgets,
as these depend upon significant levels of capital receipts being
generated from the sale of surplus assets. At present poor market
conditions have meant that many of the proposed disposals are being held
back until more realistic sales prices can be generated. However, some
additional grant funding to cover disabled facilities has been built
into the current capital programme.
Overall the council’s proposed medium term plans are based on current
projections of available funds, with the strategy being to maintain an
affordable four-year rolling programme, including engaging local
residents in the allocation of capital resources as appropriate. These
resources will be maximised by aligning them with priorities and by
seeking external funding, careful borrowing and the disposal of assets
where prudent.
Thus, although some tough decisions will be required in the longer term
because of the significant Government funding cuts for 2014/15, adept
planning by the council means that residents will have a useful
‘breathing space’ if the Full Council approves the proposed Council Tax
freeze for the coming year when it meets on 7 February.
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