Agenda item

To consider the Cabinet’s recommendations on the 2015/16 Revenue Budget, the Medium Term Plan for 2016/17 – 2019/2020, the related Prudential Indicators and the Treasury Management Strategy (see also the Report of the Cabinet held on 22nd January 2015) and in accordance with Section 30 (2) of the Local Government Finance Act 1992, to approve resolutions as to the levels of Council Tax in 2015/16 for the various parts of Huntingdonshire District.  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.

In conjunction with a report by the Head of Resources (a copy of which is appended in the Minute Book) and Item Nos. 36 and 37 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the 2015/16 Revenue Budget, the Medium Term Financial Strategy for the period 2016/17 to 2019/20, the Treasury Management Strategy (MTFS) and other associated matters for the Council’s consideration and approval.

 

In accordance with Section 30 (2) of the Local Government and Finance Act 1992, the Council also considered proposals for levels of Council Tax in 20145/16 for various parts of the Huntingdonshire district.

 

The Executive Councillor opened his remarks by suggesting the significance of this proposed budget and Medium Term Financial Strategy which had resulted in a revenue surplus for the first time since 2003. Members were reminded that the principal aim was to focus on the interests of the residents of Huntingdonshire with any changes made not affecting frontline delivery of services and providing better value for money.

 

Referring to the key elements of the proposed budget, Councillor Gray expressed his appreciation to Mrs J Slatter, Mr C Mason and Ms R Maxwell for their assistance over this period and for producing a clearer presentational format of the budget. He also thanks Officers and Members for their assistance in identifying further savings to the budget.

 

Councillor Gray acquainted Members with the programme of review of the budget and further detail of the proposed budget, including the proposed Council Tax freeze and robust programme of Zero Based Budgeting. 

 

Having taken account of comments of the Overview and Scrutiny Panel (Economic Well-Being), the Cabinet endorsed the savings that had been achieved through the Facing the Future and Zero Based Budgeting programmes and the further savings initiative that the Cabinet Members had been tasked to achieve. Councillor Gray also was pleased to report that the business community had been consulted and all those that had responded fully supported the proposed freeze of Council Tax.

 

The Executive Councillor in referring to the Treasury Management Strategy, reported that although the economy was showing signs of growth, interest rates remained low and outlined the Council’s proposed policy to continue to use short term investments with a lower risk.

 

With these assurances, Councillor Gray moved the recommendations of the Cabinet which were seconded by the Executive Leader, Councillor J D Ablewhite.

 

The Chairman of the Overview and Scrutiny Panel (Economic Well-Being), Councillor Harrison, indicated his support for the proposed budget and MTFS and informed Members that there had been a positive contribution from the Panel and fully endorsed the proposals on behalf of the Panel.

 

In response and on behalf of the UKIP Group, Councillor K J Churchill expressed his gratitude to the Executive Councillor and Officers for the presentation which had resulted in a clearer report and clarification of information when requested. He thanked his fellow UKIP Councillors for looking into the budget and in response to the criticism surrounding an alternative budget, Councillor Churchill explained that it was important to work with the other political groups of the Council to ensure that Members are delivering the best service and value for money for the Council Tax payers. He welcomed the recommendations in respect of the Council Tax freeze and whilst generally supportive of the proposed budget and MTFS, Councillor Churchill outlined elements that the Group found difficult to accept and informed Members that the Fees and Charges schedule was incomplete and as such could not support the recommendation.

 

Similarly, Councillor M F Shellens on behalf of the Liberal Democrat Group, thanked the Members and Officers for the excellent presentation and clarity of approach. He added his concerns that the proposed budget made no reference to the Community Infrastructure Levy (CIL) which would provide additional income, the impact of the removal of the New Homes Bonus allocation funding and proposals regarding the feasibility for the utilisation of funding earned from other investments.

 

In response, Councillor Gray welcomed the support for the proposed budget and although it had been the first time the Council had been asked to levy the fees and charges for the Council he was unclear as to the suggested incompleteness of the proposals. In referring to the CIL, it was felt that this element was not a feature that would impact and the New Homes Bonus allocation funding was dependent upon the results of the forthcoming election in May. Councillor Gray assured Members that although the Council would not be reckless in their investments there was still a requirement for the provision of housing to accommodate future growth.

 

Councillor S Van De Kerkhove outlined his support for the proposed budget but expressed concern in the utilisation of reserves to subsidise Council Tax and felt that there should be further investment in the provision of housing, with the focus on affordable housing for young people.

 

In further explanation, Councillor P D Reeve concurred with the sentiments expressed to fellow Members and Officers in the compilation of the proposed budget and indicated his support.

 

Councillor M F Shellens moved and it was duly seconded by Councillor M G Baker –

 

That the following paragraph be inserted as an additional recommendation 6 in the recommendations set out in the report of the Head of Resources –

 

6.   That in the interests of transparency and openness, full disclosure of movements in the Strategic Reserve, the make-up of those movements and the resulting balances shall be presented to the Council in the same meetings as the six monthly Treasury Management reports.

 

After discussion and upon being put to the vote the Motion was declared CARRIED.

 

Councillor J D Ablewhite, Executive Leader commended Officers and Members on their hard work in the production of a budget that had gone a substantial way to bridging the gap on the use of reserves. He expressed his disappointment that an alternative budget and response to the Facing the Future exercise had not been presented by the opposition groups. In concluding, Councillor Ablewhite suggested that it had been a great achievement that the Council would not be providing fewer services than in previous years but delivering added value, whilst supporting local businesses and providing opportunities for future growth.

 

Before proceeding with the vote, Councillor K J Churchill suggested that the recommendations contained in the report of the Head of Resources should be voted upon separately rather than taken en bloc. The Chairman contended that the Budget and MTFS should be supported in their entirety and not in a piecemeal way.

 

In accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Chairman moved and it was duly seconded and

 

RESOLVED

 

that a recorded vote be taken on this item.

 

It having been previously moved and seconded, upon being put to the vote it was further

 

RESOLVED

 

(a)  that there be no increase in Council Tax for 2015/16, i.e. the Band D Charge will remain at £133.18;

 

(b)  that the proposed budget and Medium Term Financial Strategy 2016/17 to 2019/20 (Appendix 1, paragraph 1.3) be approved;

 

(c)  that the 2015/16 Fees and Charges Schedule (Appendix 1, paragraph 7 and Annex A) be approved;

 

(d)  that the 2015/16 Treasury Management Policy and Strategy and the Annual Minimum Reserve Policy (Appendix 2) be approved;

 

(e)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (para 6.2) as approved by the Section 151 Officer on the 3rd December 2014 after consultation with the Chairman of Corporate Governance Panel (and subsequent publication as a key decision).

 

The tax base (T) which is the amount £58,329 anticipated from a District Council Tax of £1 is

 

(f)  that the following amounts calculated by the Council for 2015/16 in accordance with the requirements of the Local Government Finance Act 1992 as amended by the Localism Act 2011 (the Act), the Local Government Finance Act 2012 and associated regulations :-

 

(i)  the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) (a) to (f) of the Act Gross revenue expenditure including benefits, Town/ Parish Precepts.	£78,386,683
(ii)  the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3)(a) to (d) of the Act Revenue income including reimbursement of benefits, specific and general grants, use of reserves and any transfers from the collection fund.	£65,587,958
(iii) the amount by which the aggregate at (i) above exceeds the aggregate at (ii) above in accordance with Section 31A(4) of the Act This is the “Council Tax Requirement” including Parish/Town Precepts (item i minus item ii). It is the cash sum to be funded from District, Town and Parish Council Taxes.	£12,798,725
(iv)  the Council Tax requirement for 2015/16 divided by the tax base (T) in accordance with Section 31B (1) of the Act District plus average Town/Parish Council Tax (item iii divided by District taxbase)	£219.42
(v) the aggregate of all “Special Items” referred to in Section 34(1) of the Act. The total value of Parish/Town precepts included in i and iii above.	£5,030,469
(vi) The Relevant Basic Amount of Council Tax for 2015/16 being item iii less v divided by the tax base (T) in accordance with Section 34(2) of the Act. The District Council’s Band D Tax for 2015/16	£133.18

 

(vii)  the basic amounts of Council Tax for 2015/16 for those parts of the District to which one or more special items (Parish/Town precepts) relate in accordance with Section 34 (3) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount in column "band D" set out in Table 1 attached.

(viii)  the amounts to be taken into account for 2015/16 in respect of categories of dwellings listed in particular valuation bands in accordance with Section 36 (1) of the Act are shown by adding the Huntingdonshire District Council amount to the appropriate Parish Council amount for each of the valuation bands in the columns "bands A to H" set out in Table 1 attached.

 

(g)  that the amounts of precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Police Authority, Cambridgeshire & Peterborough Fire Authority and for each Parish Council for each of the categories of dwellings listed in different valuation bands in accordance with Section 40 of the Act shown in para 6.3 attached be noted.

 

(h) that, having regard to the calculations above, the Council, in accordance with Section 30 (2) of the Act, hereby sets the figures shown in para 6.4 as the amounts of Council Tax for 2015/16 for each of the categories of dwelling shown. This is the total Council Tax to be collected, incorporating the requirements of all of the relevant bodies, for each town or parish area.

 

(i)  that the Council notes that, in accordance with Section 52ZB of the Local Government Finance Act 1992, the basic amount of its Council Tax for 2015/16 is not excessive.

 

The basic amount at b(vi) above is not excessive as defined by the Government.

 

Tax Base 2015/16

 

Abbotsley	249
Abbots Ripton	135
Alconbury	540
Alconbury Weston	279
Alwalton	117
Barham & Woolley	28
Bluntisham	720
Brampton	1728
Brington & Molesworth	135
Broughton	90
Buckden (incorporating Diddington)	1152
Buckworth	51
Bury	603
Bythorn & Keyston	135
Catworth	147
Chesterton	57
Colne	351
Conington	65
Covington	45
Denton & Caldecote	26
Earith	567
Easton	77
Ellington	232
Elton	279
Farcet	518
Fenstanton	1125
Folksworth & Washingley	344
Glatton	131
Godmanchester	2331
Grafham	234
Great & Little Gidding	117
Great Gransden	450
Great Paxton	360
Great Staughton	324
Haddon	24
Hail Weston	243
Hamerton & & Steeple Gidding	52
Hemingford Abbots	333
Hemingford Grey	1269
Hilton	450
Holme	227
Holywell-cum-Needingworth	968
Houghton & Wyton	774
Huntingdon	7056
Kimbolton & Stonely	578
Kings Ripton	81
Leighton Bromswold	81
Little Paxton	1476
Morborne	10
Offird Cluny & Offird D’Arcy	495
Old Hurst	90
Old Weston	90
Perry	261
Pidley-cum-Fenton	149
Ramsey	2709
St Ives	5742
St Neots	10530
Sawtry	1746
Sibson-cum-Stibbington	210
Somersham	1341
Southoe & Midloe	149
Spaldwick	243
Stilton	765
Stow Longa	63
The Stukeleys	396
Tilbrook	117
Toseland	36
Upton & Coppingford	84
Upwood & The Raveleys	414
Warboys	1296
Waresley-cum-Tetworth	144
Water Newton	42
Winwick	40
Wistow	216
Woodhurst	153
Woodwalton	78
Wyton-on-the-Hill	405
Yaxley	2817
Yelling	144

    58,329

 

(j)  that in the interests of transparency and openness, full disclosure of movements in the Strategic Reserve, the make-up of those movements and the resulting balances shall be presented to the Council in the same meetings as the six monthly Treasury Management reports.

 

(In accordance with the Local Authorities (Standing Order) (England) (Amendment) Regulations 2014, the following Members voted for, against or abstained from the Motion –

 

For the motion – Ablewhite, M G Baker, Boddington, Bucknell, Bull, Butler, Carter, Cawley, Conboy, Davies, Dew, Dickinson, Francis, Fuller, Gardener, Giles, Gray, Harlock, Harrison, Harty, Hayward, Howe, Jordan, Kadic, Kadewere, Mackender-Lawrence, Mathews, Mitchell, Morris, Oliver, Sanderson, Shellens, Tysoe, Van De Kerkhove and West;

 

For the motion but abstention from resolution (c) above – Churchill, I J Curtis, Duffy, Farrer, Hardy, Hyland and Reeve.

 

Against the Motion - None