Issue - meetings

To approve the Draft Revenue Budget 2019/20 and the Medium Term Financial Strategy 2020/21 to 2023/24.

Executive Councillor: J A Gray.

Cabinet approved:

·  Overall Draft Budget 2019/20 and Medium Term Financial Strategy 2020/21 to 2023/24 as outlined in Appendix 1;

·  Savings and growth proposals as outlined in paragraph 4.1 to 4.6 (Appendices 3 and 4);

·  Draft Capital Programme 2019/20 to 2023/24 as outlined in paragraphs 9.1 and 9.2; and

·  Planned increase in Council Tax of 2.6% for 2019/20 and for the duration of the Medium Term Financial Strategy as outlined in paragraphs 7.1 to 7.3 (Table 6).

By way of a report by the Head of Resources (a copy of which is appended in the Minute Book) Executive Councillors were presented with the details of the Draft Budget 2019/20 and the revised Medium Term Financial Strategy for the period 2020/21 to 2023/24.

In noting the forecast outturn position for 2018/19, Members’ attention was drawn to Tables 2 and 3 detailing service savings, income and growth and a summary of savings and additional income respectively. In discussing the position with Government Grants, it was reported that the New Homes Bonus would be phased out over the four year period with the first reduction planned in 2020/21. Whilst Business Rates had been modelled on a 2% growth rate, Members were mindful of the implications of the Fair Funding Review which would see a reduction in the level of income retained by the Council. These changes had been included in the Medium Term Financial Strategy taking effect from 2020/21.

The draft Capital Programme for the period 2019/20 to 2023/24 was noted together with the Minimum Revenue Position which had been calculated at £2.42m.

Referring to the proposed increase in Council Tax of 2.6%, the Executive Councillor for Strategic Resources commented on the need to protect the District’s most vulnerable community groups from sharp increases in rates. Attention was also drawn to the £1.3m budget gap which had been estimated at the end of the Medium Term Financial Strategy period. In doing so, assurances were received that efforts had been made to deliver a robust and resilient budget.

The Cabinet expressed their appreciation to the Executive Councillor for Strategic Resources, Senior Officers and staff for their continued assured management of the Council’s finances and production of a comprehensive budget. Having commended the Overview and Scrutiny Panel (Performance and Growth) for the scrutiny of the budget at their meeting on 8th January 2019, the Cabinet

RESOLVED

a)  that the overall Draft Budget 2019/20 and Medium Term Financial Strategy 2020/21 to 2023/24 (as attached as Appendix 1 of the report now submitted) be approved;

b)  that the savings and growth proposals (as per paragraphs 4.1 to 4.6 and attached as Appendices 3 and 4 of the report now submitted) of the draft Budget 2019/20 be approved;

c)  that the draft Capital Programme 2019/20 to 2023/24 (as per paragraphs 9.1 to 9.2 of the report now submitted) be approved; and

d)  that the planned increase in Council Tax of 2.6% for 2019/20 and for the duration of the Medium Term Financial Strategy (as per paragraphs 7.1 to 7.3 and Table 6 of the report as submitted) be approved.

The Panel are to consider the Draft Revenue Budget 2019/20 and the Medium Term Financial Strategy 2020/21 to 2023/24.

With the aid of a report by the Head of Resources (a copy of which is appended in the Minute Book) the Draft Revenue Budget 2019/20 and the Medium Term Financial Strategy 2020/21 to 2023/24 was presented to the Panel.

The Head of Resources highlighted the key aspects of the budget and in doing so informed the Panel that there are pending developments regarding government funding (revenue support grant, new homes bonus, business rates). In addition, the Council will have a surplus budget in 2019/20 meaning that a contribution is made to the surplus fund in order to cover deficits in following years.

A Member expressed concern that the Council would overspend the budgets for Leisure and Health and Operations as happened in 2018/19. However, it was confirmed that the issue with the 2018/19 budgets for those areas was that income was not as high as anticipated and therefore the income target has been revised to reflect this.

A question was raised as to whether leaving the European Union (EU) had been factored into the budget. The Panel was informed that the budget has been managed as much as possible to reflect the impact that leaving the EU would have, however there are still a number of unknowns which can only be dealt with once they happen.

Reassurance was given, following a query, that the fact that additional employee costs have been budgeted for, this would not predetermine any employee pay negotiations.

Support was expressed for the continuance of the Commercial Investment Strategy, although some Members stated a preference for greater investment within the District’s boundaries. The Executive Councillor for Resources explained that the Council should not limit investment to within the boundary of the District.

Following a question on why not many purchases have been made, the Executive Councillor stated that the strategy requires a yield close to 6% and that there are not many commercial properties that would produce that yield.

It was explained to Members that the New Homes Bonus would move into Commercial Investment Fund. Following a question as to why it wouldn’t be used to mitigate other budget issues, the Panel was informed it was due to unpredictability over New Homes Bonus.

Regarding the most challenging savings proposals, the Executive Councillor stated that the income growth proposals are most challenging and the Council are not certain how the public will react to them.

In response to concerns expressed about the litter bin removal programme, Members were informed that the programme is about finding efficiencies and removing bins that are rarely used.

Concern was expressed that residents would have to pay for a number of additional bin charges, however it was explained that the increases for the green bin only relates to residents who have a second green bin. The replacement bin charge does not cover the full economic cost of replacing a bin and the service will still be subsidised. The bulky waste charge is currently a subsidised service and with the charge will no  ...  view the full minutes text for item 46