Agenda item

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 with a very few minimal increases during the financial year. Councillor Gray reported upon the robustness of the 2017/18 budget and MTFS and review by the Council’s Responsible Financial Officer that had demonstrated that managers had been prudent in the delivery of their services and the Council’s costs had been firmly under control.

 

In turning to the setting of the Council Tax base, Councillor Gray reminded Members that the level of Council Tax had not been increased for four years and although reluctant to introduce an increase, it was necessary to ensure the affordability of any increase. With this in mind, it had been proposed to increase Council Tax by 2% for 2017/18 but reduce the Council Tax increase to 1.5% for each year of the MTFS.

 

Attention was drawn to the impact on the budget of various changes within services, including savings achieved within the Operations Division and investment in resources providing further employment opportunities, savings in reduced insurance premiums and additional income generated through the Commercial Investments Strategy (CIS). Councillor Gray highlighted past and future budgets of spending and funding, by drawing attention to income from Council Tax growth and business rates, together with the impact of the reduction of the New Homes Bonus and Revenue Support Grant but also demonstrated that the cost to deliver the Council’s services had decreased in a controlled manner.

 

Members were reminded of the success of One Leisure and the surplus that had now been achieved, with credit owed to the Executive Leader and Councillor J M Palmer and achievements with investment in the CIS that had added over £0.5m to the overall budget. Councillor Gray further reported upon the Treasury Management Policy Statement and informed Members that the investment activities had been deemed low risk with the ability to access the investments should the need be required. 

 

In concluding his presentation, Councillor Gray reminded Members that the Council had managed to achieve a surplus budget whilst maintaining a productive level of reserves, with the capital programme under control and the Council in control of its debts. It was considered that the service delivered had been of a high standard and a significant amount of work had been undertaken over the past five years to make it more effective and efficient, with the focus now on development of the income streams of One Leisure and the CIS.

 

Councillor Gray moved the recommendations which were duly seconded by the Executive Leader, Councillor R B Howe.

 

In response and on behalf of the Liberal Democrat Group, Councillor Mrs S J Conboy thanked the Executive Councillor for his informative and clear presentation and in so doing drew attention to the considerable achievements, whilst reminding Members of a failed proposal by Councillor M F Shellens in the previous year to increase the level of Council Tax by 2% as it was felt that delivery of the budget at this rate was unsustainable. In outlining her concerns, Councillor Mrs Conboy questioned what steps had been put in place to ensure that the Council would not be issued with a Section 114 Notice under the Local Government Finance Act 1988 and raised the issue of Unitary status for authorities going forward. In response Councillor Gray reported that the role of the Responsible Finance Officer was to err on the side of prudence and caution and, as such, he was confident that the expenditure was lawful and the budget balanced. He further reported that there had been other earmarked reserves available that could be redirected to support revenue expenditure should the need arise.

 

Councillor D A Giles congratulated the Executive Councillor on his clear and succinct budget presentation and reported that he was pleased to see the support for the illegal poster campaign removal, together with the turnaround of One Leisure and additional funding to tackle homelessness. With this in mind, Councillor Giles indicated his support for an increase in Council Tax to support such initiatives going forward.

 

In congratulating the Executive Councillor on the clarity of his presentation, Councillor S Greenall paid tribute to the Chairman and Vice-Chairman of the Overview and Scrutiny Panel (Performance and Customers) in consideration of the draft budget, but outlined his concern for the significant level of expenditure of £108k allocated to replace the Civic Suite Audio equipment.

 

In response to a question from Councillor J P Morris on the issue of a press release advising that the Council Tax would be increased by 2% in advance of the decision taken by the Council that he felt was disrespectful, Councillor Gray explained that the press release had been drafted to detail the recommendations being considered by the Council and had assured Councillor Morris that there had been no intention to pre-determine the decision or to be disrespectful.

 

Councillor B S Chapman thanked the Officers involved in presentation of a successful budget and indicated his support for the additional resources in the Economic Development Team and questioned whether the Council had given consideration to development of a property development company in operation at East Cambridgeshire District Council for its commercial investments. Councillor Gray reported that this option was currently under consideration by the Treasury Management Group.

 

Councillor M F Shellens echoed the congratulations of the previous Members but outlined his concerns in relation to various uncertainties, specifically the level of inflation assumption, level of returns of the CIS, new duties that may arise through the retention of business rates, pensions and demands for housing. However, Councillor Shellens had agreed with the basic strategic approach and congratulated the managers involved.

 

Councillors D B Dew, J D Ablewhite, D M Tysoe, S Cawley and Ms S L Taylor also contributed to the debate that followed, with particular mention of the ongoing capital investments at One Leisure and the requirement to maintain investment at the Leisure Centres to compete with other providers and highlighted a major concern that some Town and Parish Councils had been setting their precepts as high as the District Council, with Huntingdon Town Council exceeding the District Council.

 

Councillor Gray concluded in response to the comments made by Members that he had shared a similar nervousness regarding inflation and it had not been possible to retain the reliance on grant funding as they would not continue at the same rate as inflation. He also intimated his uncertainty regarding the CIS, but had assured Members that the plan had been delivered for this financial year and would continue in its development.

 

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

 

(a)  that the proposed overall Budget 2017/18 and Medium Term Financial Strategy (MTFS) 2018/19 to 2021/22 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2017/18 Fees and Charges (at Section 7, Annex A) be approved;

 

(b)  that an increase of 2% in Council Tax for 2017/18 be approved, i.e the Band D Charge will increase to £135.84

 

(c)  that the Council note the Council Tax Base for the whole Council area and individual Towns and Parishes (para 6.2) as approved on the 22nd December 2016 (and subsequent publication as a key decision).

 

The tax base T which is the amount anticipated from a District Council Tax of £1 is

£60,111

 

(d)  that the following amounts calculated by the Council for 2017/18 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:-

 

(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 and Parish Precepts	£83,864,136
(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.	£69,967,795
(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.	£13,896,341
(iv)  the Council Tax requirement for 2017/18 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)	£231.18
(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.	£5,730,673
(vi)  the Basic Amount of Council Tax for 2017/18 being item iv less item v divided by the tax base (T) in accordance with Section 34(2) of the Act. The District Council’s Band D Tax for 2016/17	£135.84

 

(vii)  the basic amounts of Council Tax for 2017/18 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 to the Agenda of the meeting of the Council held on 22nd February 2017.

(viii)  the amounts to be taken into account for 2017/18 in respect 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 to the Agenda of the meeting of the Council held on 22nd February 2017.

 

(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 2017/18 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 2017/18 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.

 

 

 

 

Tax Base 2017/18

 

Abbotsley	252	Holywell-cum-Needingworth	972
Abbots Ripton	133	Houghton & Wyton	792
Alconbury	562	Huntingdon	7,335
Alconbury Weston	285	Kimbolton & Stonely	590
Alwalton	119	Kings Ripton	81
Barham & Woolley	28	Leighton Bromswold	81
Bluntisham	738	Little Paxton	1,555
Brampton	1,830	Morborne	10
Brington & Molesworth	162	Offord Cluny & Offord D’Arcy	502
Broughton	90	Old Hurst	99
Buckden (incorporating Diddington)	1,168	Old Weston	90
Buckworth	50	Perry	261
Bury	615	Pidley-cum-Fenton	162
Bythorn & Keyston	144	Ramsey	2,785
Catworth	153	St Ives	5,859
Chesterton	58	St Neots	10,908
Colne	355	Sawtry	1,809
Conington	66	Sibson-cum-Stibbington	224
Covington	45	Somersham	1,357
Denton & Caldecote	27	Southoe & Midloe	152
Earith	587	Spaldwick	245
Easton	76	Stilton	773
Ellington	238	Stow Longa	67
Elton	288	The Stukeleys	442
Farcet	524	Tilbrook	120
Fenstanton	1,161	Toseland	39
Folksworth & Washingley	353	Upton & Coppingford	82
Glatton	132	Upwood & The Raveleys	422
Godmanchester	2,421	Warboys	1,368
Grafham	237	Waresley-cum-Tetworth	144
Great & Little Gidding	122	Water Newton	45
Great Gransden	451	Winwick	42
Great Paxton	365	Wistow	220
Great Staughton	324	Woodhurst	157
Haddon	25	Woodwalton	81
Hail Weston	249	Wyton-on-the-Hill	418
Hamerton & Steeple Gidding	48	Yaxley	2,898
Hemingford Abbots	335	Yelling	152
Hemingford Grey	1,278
Hilton	453	TOTAL	60,111
Holme	225

 

 

(h)  that future savings targets of £1.4m of Net Expenditure by 2021/22 (Appendix 2) be approved; and

 

(i)  that the 2017/18 Treasury Management Policy, Strategy & Indicators and the Annual Minimum Revenue Policy (Appendix 3) be approved.

 

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, Baker, Boddington, Brown, Bucknell, Bull, Butler, Cawley, Chapman, Conboy, Corley, Criswell, Davies, Dew, Dickinson, Donaldson, Francis, Fuller, Gardener, D Giles, S Giles, Gray, Greenall, Harrison, Hayward, Howe, Kadewere, Mathews, Mead, Morris, Palmer, Shellens, Swain, Tavener, Taylor, Tuplin, Tysoe, Underwood, Wainwright, West and White.

 

Against the Motion – Hyland and Reeve.

 

Abstentions – None.