Issue - meetings

The Executive Councillor for Strategic Resources, Councillor J A Gray to present the 2017/18 Budget, the Medium Term Financial Strategy (MTFS) for 2017/18 – 2020/21, the Fees and Charges Schedule for 2017/18, the Treasury Management Policy, Strategy and Prudential Treasury Management and Commercial Investment Strategy Indicators for 2017/18 and the Annual Minimum Revenue Policy 2017/18 for approval.

In accordance with Section 30 (2) of the Local Government Finance Act 1992, the Council will be required to approve resolutions as to the levels of Council Tax in 2017/18. A report by the Head of Resources is enclosed.

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Council will be asked to resolve that a recorded vote be taken on the conclusion of debate on this item.

(Notes  30 Minutes Presentation

  30 Minutes for Questions).

The Chairman reminded Members of the decision made by the Council to suspend Council Procedure Rule 11 (Rules of Debate) to enable a full debate to be made by Members on the 2017/18 Budget and medium Term Plan Financial Strategy in an open manner.  The Council therefore

RESOLVED

that Council Procedure Rule 11 (Rules of Debate) be suspended for the duration of the discussion on Minute No. 65, during which time the common law rules of debate be observed by Members and applied by the Chairman.

In conjunction with a report by the Head of Resources and PowerPoint presentation (copies of which are appended in the Minute Book), the Executive Councillor for Strategic Resources presented to Members the 2017/18 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2018/19 to 2021/22, the Treasury Management Policy, Strategy and Prudential, Treasury Management and Commercial Investment Strategy (CIS) Indicators for 2017/18 and other associated matters for the Council’s consideration and approval.

In accordance with Section (30)2 of the Local Government Finance Act 1992, the Council also considered proposals for levels of Council Tax in 2017/18 for various parts of the Huntingdonshire district.

In his opening remarks, Councillor Gray informed Members that he would be presenting the report at a higher level given the fact that it had previously been discussed at the Overview and Scrutiny Panel (Performance and Customers) and the report had been made available to all Members prior to the Council meeting. Attention was drawn to Appendix 4 of the report that summarised the results of consultation with the business community that, although low, had been a higher response than the previous year.

Councillor Gray expressed his support to Members of the Overview and Scrutiny Panel (Performance and Customers) in consideration of the draft budget and their constructive input. He gave particular thanks to the Managing Director and her Team who had engaged in the process, together with consideration of challenges and direction from fellow Members of the Cabinet and to the Head of Resources, Finance Manager and Members of the Accountancy Team.

In drawing Members’ attention to the updated ‘Plan on a Page’ that outlined the Council’s vision and strategic priorities as part of the Corporate Plan, Councillor Gray explained that the Financial Strategy had been updated to reflect the reduction in the budget deficit that had been reported in the previous year as £3.6m in 2020/21 and had now been a predicted deficit of £1.33m in 2020/21 and £1.36m in 2021/22. In reporting upon the huge accomplishments and significant progress made in achieving a budget surplus of £3m, Councillor Gray indicated that there were further savings to be realised as there was likely to be significant reductions in government grants; Revenue Support Grant and curtailment of the New Homes Bonus.

Members noted that the budgeted contribution to reserves had been held around 15%, with the target that had been set in the previous year being achieved and the Schedule of Fees and Charges had been virtually untouched  ...  view the full minutes text for item 65

To receive and recommend to Council the Final Revenue Budget 2017/18 and Medium Term Financial Strategy 2018/19 – 2021/22.

RECOMMENDS

That Council approve the:

  i.  overall budget 2017/18 and Medium Term Financial Strategy 2018/19 to 2021/22 at detailed in Appendix 1 (which includes Revenue at Section 2 and the Capital Programme at Section 3 and Appendix 2, growth) of the submitted report, subject to the following amendment:

A Council Tax increase of 2% for 2017/18 and 1.5% through the Medium Term Financial Strategy

  ii.  fees and charges for 2017/18 as detailed in Appendix 1, Section 7 and Annex A of the submitted report; and

  iii.  the new Plan-on-a-Page as detailed in Appendix 3 of the submitted report, subject to the amendment listed in (i) above.

By way of a report from the Head of Resources (a copy of which is appended in the Minute Book), presented in conjunction with the Executive Councillor for Strategic Resources, the Cabinet considered the final Budget for 2017/18 and the Medium Term Financial Strategy (MTFS) for the period 2018/19 to 2021/22.

At the meeting of the Cabinet in January 2017 the Cabinet approved a Budget requirement of £16.7m for 2017/18, a MTFS that increased to £16.9m by 2021/22 and a Capital Programme of £9.5m for 2017/18 that reduced to £3.0m by 2021/22 (Minute No. 75 referred).  This included:

•  savings from a detailed line by line Budget review of £700K;

•  growth of £1.5m (inflation - £227k; employee pay - £453k and other growth - £775k);

•  non-realisation of previously approved Zero Based Budgeting (ZBB) savings of £430k;

•  increased income from the Commercial Investment Strategy of £1.0m;

•  grant settlement relating to New Homes Bonus and funding estimates for Revenue Support Grant, New Homes Bonus and Business Rates; and

•  the new Four Year Settlement from Government.

It was explained that there had since been significant changes to the Budget which were summarised in the submitted report and were detailed in Appendix 2.  It was noted that one of the main changes being the Council wide Apprentice scheme of twelve apprentices at a cost of £221k.  In response to a question it was explained that with a full complement of apprentices the cost would increase to £331k in 2019/20 and thereafter pay inflation had been added.

The Cabinet expressed concern at the amount of changes required to the Budget since the draft Budget had been approved the previous month which resulted in an additional £835k being required.  Concern was also expressed at the Apprentice scheme which Members had not been informed of and therefore a future report to the Cabinet was requested. 

In response to a question it was explained that the Apprenticeship Scheme was allocated to the Economic Development Budget as part of the Council’s growth and skills agenda.

Tabled at the meeting was a document titled ‘Budget Consultation – Headline Results: Business and Voluntary Sector’.  It was explained that by law the Council was required to consult its business community once the draft Budget was approved.  From the 1590 businesses and voluntary sector organisations invited to complete the survey only 22 responses had been received - an increase of seven responses compared to the previous year.

Although there was a slight increase in the number of responses to the survey the Cabinet were disappointed with the response rate.  However, it was accepted that the Economic Development Team had worked hard to develop a database which the survey was directly emailed to and Members were uncertain how the business community could further be encouraged to participate. 

Having been referred to paragraph 8 of the submitted report, the Council’s Responsible Financial Officer (Section 151 Officer) was required to make a statutory statement in respect of the Budget and Reserves.  ...  view the full minutes text for item 85

The Panel are to consider the Final Revenue Budget 2017/18 and the Medium Term Plan Financial Strategy 2018/19 to 2021/22.

With the aid of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Final Revenue Budget 2017/18 and Medium Term Plan Financial Strategy (MTFS) 2018/19 to 2021/22 was presented to the Panel. Follow the discussion of the Draft Budget at the Panel meeting in January 2017, the Panel concentrated the debate on the parts of the budget that has changed since the draft.

In response to complaints that the font in the fees and charges section of the report is too small, the Panel was informed that this will be reviewed for 2018/19.

A Member raised a concern in relation to the additional cost of the transformation work and stated that the Panel should be presented with evidence that the money is being spent well.

Following the question as to why Council Tax was not raised last year but will be this year, the Executive Leader informed the Panel that the Council have frozen Council Tax for the past five years and have made efficiency savings in that time. However additional income is now required to invest and protect the services the Council provides, particularly as the Council are receiving an ever decreasing amount of funding from Central Government.

Another Member stated that the Cabinet and Officers have done well in making efficiency savings and stated that they believe Council Tax should not increase beyond wage inflation. In addition they had attended the Treasury Management training and suggested that this is repeated in the next Municipal Year.

The Chairman suggested that the 1% pay increase for staff may not be enough as inflation has the potential to increase by more than 1%.

(At 8.57pm, during the discussion of this item, Councillor R B Howe left the meeting and did not return.)