Agenda item

The Executive Councillor for Resources, Councillor J A Gray to present the 2016/17 Budget, the Medium Term Financial Strategy (MTFS) for 2017/18 – 2020/21, the related Prudential Indicators and the Treasury Management Strategy for 2016/17 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 2016/17 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.

(The recommendations of the Cabinet are included within the report of their meeting on 11thFebruary 2016. See item 7a.)

In conjunction with a report by the Head of Resources (a copy of which is appended in the Minute Book) and Item Nos. 49 and 50 of the Report of the Cabinet, the Executive Councillor for Resources presented to Members the 2016/17 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2016/17 to 2020/21, the Treasury Management Strategy 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 2016/17 for various parts of the Huntingdonshire district.

In his opening remarks, the Executive Councillor reflected back on previous budgets that he had presented since 2012 and was pleased to present a surplus budget to Members once again. By way of reflection, Councillor J A Gray reminded Members that Council Tax had risen by 7.25% over the past six years and over the same period pensions had risen by 18.76% and average weekly wages had risen by 10.9%. Thereby illustrating that the Council had succeeded in keeping increases in line with working residents and pensioners.

Councillor Gray outlined the budget setting process that had been undertaken this year, including a robust Zero Based Budgeting (ZBB) exercise for all services, with £1.9m previously identified for removal from the 2015/16 budget and a further £4m of identified savings by the end of the MTFS. In referring to the monthly budget ‘dashboard’ that had been received by Members, Councillor Gray reported that all services has been achieving their targets, whilst being prudent in the delivery of their services and expressed his appreciation to his fellow Cabinet Members and Officers for the end result.

Member’s attention was drawn to the inclusive budget review process that commenced with the Star Chamber review in July 2015 with the outcome reported to the Overview and Scrutiny Panels and the Cabinet. This was concluded with the presentation of the draft budget to Overview and Scrutiny and the Cabinet in January 2016. Alongside this there was consultation with residents and businesses in the District.

Councillor Gray updated the Council on the MTFS Capital Programme and Commercial Investment Strategy (CIS), including the borrowing strategy to facilitate the capital programme and CIS. In summarising the funding statement, Members were advised of the key assumptions including the commitment to freeze Council Tax for 2016/17 and removal of the Revenue Support Grant as core funding by 2020/21.

Members were reminded of a previous consideration to place the Leisure Centres in Trust status to alleviate the deficit, but the Council would have continued to be required to make ongoing financial contributions to the Trust. As previously reported to Members, Councillor Gray confirmed that the Council had no longer been subsidising the five Leisure Centres and had now been making a small contribution to the Council’s budget.

In acquainting Members with the Treasury Management Policy and Strategy and Annual Minimum Revenue Provision for 2016/17, Councillor Gray explained that the Council remained committed to short term investments with lower risk. With these assurances, Councillor Gray moved the recommendations of the Cabinet which were duly seconded by the Executive Leader, Councillor J D Ablewhite.

Councillors D A Giles, R S Farrer and T Hayward also contributed to the debate that followed, with particular mention of increases in parish precepts, concerns with control of the CIS and credibility of the consultation exercise with residents and businesses. In response, Councillor Gray explained that the Council had been successful in balancing the budget without the need to increase Council Tax, whilst maintaining the level of services for the residents of Huntingdonshire.

Councillor J D Ablewhite, Executive Leader, addressed the Council on the challenges that the Council had faced over recent years and highlighted the uncertainly with the removal of core funding from Government. He explained that resilience had been created in the budget to enable service delivery through innovation and collaboration and commended Officers for their support.

In response and on behalf of the Liberal Democrat Group, Councillor Mrs S J Conboy thanked the Executive Councillor for his presentation and outlined her support for the ZBB process. She highlighted concerns with the high number of staff vacancies in key service delivery roles and fees for temporary staff to fill these roles. In addition to this, concern was expressed regarding the over reliance on the voluntary sector to deliver services. In referring to forecasted negative general fund anticipated by 2020/21, Councillor Mrs Conboy suggested that incremental changes to Council Tax were necessary now to secure the MTFS and would be supported by the Group.

In continuing the debate, Councillor M F Shellens acquainted Members with the ongoing cuts to services at Cambridgeshire County Council and the subsequent knock-on effect to the frail and vulnerable residents of the District. In referring to the support provided by the voluntary sector to assist with the gaps in service provision, Councillor Shellens moved and it was duly seconded by Councillor Mrs Conboy –

That the following amendment be made to the recommendations set out in the report of the Head of Resources –

To save services and produce a more secure future for this Council with more adequate reserves, the Council accepts a 2% increase in Council Tax allowed by the Government for 2016/17. It will also adjust car allowances for Councillors to recognise the reduced cost of fuel. The resultant income to be split; half to the voluntary sector to seek to reduce the reduction in services threatened for the frail and vulnerable; and half used to augment Council reserves.

In debating the response of the Liberal Democrat Group, Councillor R B Howe suggested that an increase in Council Tax would be misguided and was confident that Officers would be able to budget to balance the budget for 2020/21. In support, Councillor D M Tysoe referred to many residents who had not had a significant wage increase and would be negatively affected by any subsequent increase to Council Tax. However, Councillor T Hayward outlined his support for an increase in Council Tax and Councillor D A Giles referred to his concerns with the ongoing cuts to services and funding to voluntary groups and urged Members to re-consider the funding awarded to such groups.

Councillor J A Gray concluded by reminding Members that the Council had been placed in a better position this year than previous years as a clear plan had been identified to achieve a balanced budget and an increase to Council Tax was unlikely to solve the wider issue of reduction of core funding in 2020/21.

After discussion and upon being put to the vote the Motion by Councillor Shellens was declared to be LOST.

In response and on behalf of UKIP, Councillor Ms L A Duffy commended the Officers and Members over the work with ZBB but highlighted her concerns with direction for 2021. She welcomed the Council Tax freeze and referred to the need to identify additional revenue streams, as well as investigating alternative ways of working.

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

(a)  that the proposed overall budget 2016/17 and Medium Term Financial Strategy (MTFS) 2017/18 to 2020/21 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2016/17 Fees and Charges (at Section 7, Annex A) be approved;

(b)  that there be no increase in Council Tax for 2016/17, i.e the Band D Charge will remain at £133.18;

(c)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (para 6.2) as approved by Cabinet on the 21st January 2016 (and subsequent publication as a key decision).

(d)  that the following amounts calculated by the Council for 2016/17 be approved 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:-

(e)  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 be noted.

(f)  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 2016/17 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.

(g)  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 2016/17 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.

Tax Base 2016/17

(h)  that the future savings target of £3.6m (21% of Net Expenditure by 2020/21 be approved;

(i)  that the 2016/17 Treasury Management Policy, Strategy & Indicators and the Annual Minimum Revenue Policy (Appendix 2) be approved; and

(j)  that, in future the “Net Cost of Borrowing v Net Expenditure” indicator be reported as part of the Treasure Management Suite of Indicators.

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

For the Motion – Ablewhite, Alban, Boddington, Brown, Bucknell, Bull, Butler, Carter, Cawley, Criswell, Davies, Dew, Dickenson, Duffy, Francis, Fuller, Gardener, George, Gray, Hansard, Harrison, Harty, Howe, Hyland, Kadewere, Mathews, Oliver, Palmer, Sanderson, Tysoe, West and White.

For the Motion – Conboy, Greenall, Morris and Shellens (against resolutions 1 and 2), Giles (against resolutions 2 and 3), Hayward and Tuplin (against resolution 2)

Abstentions - None