The Executive Councillor for Strategic Resources, Councillor J A Gray to present the 2018/19 Budget, the Medium Term Financial Strategy (MTFS) for 2019/20 – 2022/23, the Fees and Charges Schedule for 2018/19, the Treasury Management Policy, Strategy and Prudential Treasury Management and Commercial Investment Strategy Indicators for 2018/19 and the Annual Minimum Revenue Policy 2018/19 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 2018/19.
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).
Minutes:
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 2018/19 Budget and Medium Term 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. 58, 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 2018/19 Revenue Budget, the Medium Term Financial Strategy (MTFS) for the period 2019/20 to 2022/23, the Treasury Management Policy, Strategy and Prudential, Treasury Management and Commercial Investment Strategy (CIS) Indicators for 2018/19 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 2018/19 for various parts of the Huntingdonshire district.
In his opening remarks, Councillor Gray drew Members attention to the highlights of the budget for the forthcoming year, including proposals for an increase in Council Tax of 2% that was lower than state pension and wage increases and ultimately more affordable. Members also noted that the minimum level of general fund reserves was set to increase to £2.7m as a result of the grant settlement from Government, the Council’s policy to increase Council Tax and the savings, income and growth built into the 2018/19 budget and MTFS.
Attention was drawn to specific changes in service budgets and the resultant impact on the final budget, including commercialisation and service changes for CCTV, increase in homelessness resources as a consequence of new legislation, changes to charging for planning services, income from car parking with no changes to car parking fees currently, significant contribution of £190k to the budget from the Leisure and Health Service, substantial investment in ICT for the roll out of the Council Anywhere project and income from the CIS.
Councillor Gray reminded Members of the process of consideration of the draft budget, from informal Cabinet in December 2017 with Senior Officers through to consideration of the draft and final budget at Overview and Scrutiny and Cabinet. He reported that this was the seventh budget that he had delivered but had by far involved the most robust discussions and thanked all Members for their input.
In comparing past and future budgets, Members attention was drawn to forthcoming changes that would be emerging through the transformation programme to deliver services for its residents in an efficient and effective manner with the savings ring-fenced to deliver more efficiencies across Council services. Councillor Gray also appraised Members with the increase in capital investment specifically in Disabled Facilities Grants, with an increase from £300k in the current year to £800k in 2018/19 to reflect the increasingly important interaction with social care and the ageing population.
In referring to the success of One Leisure, Councillor Gray reported that the extension of the lease at St Neots had now been signed thereby allowing the long awaited investments of the 3G pitch and swimming pool, with investment already taken place in St Ives, Huntingdon and Ramsey centres.
An assumption of a 2% increase in Council Tax over the next four years had been provided to account for the removal of the Revenue Support Grant as of 2019/20 and Councillor Gray advised Members that in 2018/19 the Council would meet its objective of being self-financing and free from Government grant. In comparing previous budgets, Members noted that in 2012 £3.6m was being taken out of the General reserve and in 2018/19 £3m was being placed into the General reserve ensuring the protection of front line services for residents. Councillor Gray reported that this had been achieved by balancing services that residents want, whilst maintaining reserves and setting a Council Tax level that was affordable to its residents.
In relation to the CIS, a key part of the Council’s overall budget strategy, Councillor Gray reported that the Council had currently been in discussions regarding some options in the district and also referred to phases two and three of the CIS that would involve investments in housing and retail in an attempt to revitalise the town centres.
Members noted the thresholds in place for short and long term borrowing and the self-imposed limit of not reducing the level of reserves to lower than 15% as proposed by Overview and Scrutiny. Councillor Gray reported upon the Treasury Management activity that had been reviewed fully by Members previously and stressed the importance of minimising risk through its investments.
In concluding his presentation, Councillor Gray thanked Officers and Members for their input into delivering the 2018/19 budget that had resulted into the Council remaining financially stable and strong with clear ambitions to drive forward change and develop new ways of working.
Councillor Gray moved the recommendations which were duly seconded by the Executive Leader, Councillor G J Bull.
In response and on behalf of the Liberal Democrat Group and Leader of the Principal Opposition Group, Councillor Mrs S J Conboy thanked the Executive Councillors and Officers for providing ongoing stability and support for the 2% increase in Council Tax despite the Liberal Democrat Group proposing a similar increase in previous years. In so doing Councillor Mrs Conboy drew attention to concerns in relation to the risks associated with running at the lowest possible reserve rate with not much margin for error but also indicated her hope for HDC Ventures that may play an important part in maintaining the overall budget.
Members noted Councillor Mrs Conboy’s concerns in relation to continued staff absences impacting of services, but welcomed the investment in homelessness that would assist the increased demands on emergency shelter accommodation and the provision of temporary accommodation as an alternative to Bed and Breakfast accommodation. Councillor Mrs Conboy noted that the decision to maintain the Customer Service Centres had been a factor in the overspend of the budget and requested that engagement be made at an earlier stage of the budget setting and policy making process in order that further pressure is not experienced that may benefit one area at an overall cost to the District. Furthermore, concern was expressed of an increased risk to flooding in the District and the demand that would be placed upon the flood risk payment provision.
Councillor D A Giles, on behalf of the HDC Independent Group, referred to the imbalance of investment of the CIS out of area compared with in the District and hoped that the balance would change to invest more in the District resulting in increased business rates and employment opportunities.
On behalf of UKIP, Councillor P D Reeve outlined their support for much of the strategy and endorsed the work of the Cabinet and Officers but not endorsement of an increase in Council Tax.
Councillor R G Tuplin and P Kadewere indicated their support for the budget and thanked Councillor Gray for the clear presentation.
Councillor T Hayward expressed his concern for the reduction of resources in the Audit Team as highlighted in correspondence from the Internal Audit and Risk Manager and his concern that the reduced resources may impact upon the governance of the Council. In response Councillor Gray had confidence that the Council had the right balance of resources, this had confirmed by the external auditors but undertook to re-examine the resourcing level in the Audit Team at Councillor Hayward’s request.
In response to a question from Councillor T D Sanderson, Councillor Gray confirmed that the forecast outturn of overspend was estimated to be £700k.
Councillor S Greenall highlighted his concerns in relation to the level of overspend on the hired staff budget for 2017/18 and the budget allocation for 2018/19 of £200k. He suggested that this budget allocation may need further review.
In congratulating Councillor Gray and Officers on the budget, Councillor M F Shellens outlined his concerns in relation to voting on the recommendations as a single item, in particular his concerns where the budget is dependent upon commercial income that can go up and down. He also highlighted an issue in relation to car parking in Huntingdon, with particular congestion at the weekends that could ultimately deter shoppers away from the town and requested the investigation of an additional tier to the Princes Street Car Park in the forthcoming year.
Councillor Sanderson referred to the level of overspend in the budget this year as a result of some budgets being cut too far and too fast. He indicated his concerns for the 177 families that remained homeless, the continual borrowing for the CIS and failure to follow Government advice to pass down further funding assistance to Town and Parish Councils.
Councillor D B Dew congratulated Members on the budget and referred to the target set to work together with Overview and Scrutiny that should be commended that their opinions had been considered and dealt with through the draft budget setting process. He referred to the success of One Leisure and car parking that had been generating significant income and support for the CIS. Although anti-increase of Council Tax, Councillor Dew understood the requirement to maintain levels with inflation and outlined this support for the budget.
In referring to the proposed Council Tax increase Councillor T D Alban suggested that the vulnerable needed to be protected, whilst maintaining services at a level that residents could afford to pay and outlined his support for this budget.
Councillor R Fuller indicated his support for the budget but in response to comments made by Councillor Sanderson he explained that the Council had been doing more than it had ever done assisting those in need and had been there for residents in times of crisis. He referred to the demand being met for temporary accommodation for those in need and the funding of £189K allocated to meet the demands imposed by the Homelessness Reduction Act 2017. In referring to the 177 homeless figure quoted by Councillor Sanderson, this had referred to residents in temporary accommodation and not sleeping rough on the streets. Councillor Fuller also referred to investment of £260k in the front line planning process that would assist in speeding up the planning application system.
By reference to the Transformation Programme, Councillor S Cawley indicated that it had produced a number of savings and efficiencies and although not naturally in support of an increase in Council Tax, the District Council’s element was lower than had been precepted by Huntingdon Town Council with 50% of their budget on staff as opposed to 17% of the District Council’s budget allocation on staff.
Councillor D M Tysoe referred to the robust discussions and debate at Overview and Scrutiny and in indicating his support for the budget, he welcomed the forward plan to identify further income through the CIS and other innovative approaches to support the removal of the Revenue Support Grant.
In concluding the discussion he thanked Members for their contributions and although disagreed with the comments by Councillor Mrs Conboy on running at too low a level of reserves he concurred that that there were risks associated with investment in the CIS with levels of income going up and down and had therefore requested Overview and Scrutiny to look at the level of income that had been generated, with a view to looking at further investment into housing and retail in the future. Councillor Gray agreed that the levels of absences had been higher than they wanted, but equally wanted Officers to be proud of working for the Council.
The investment in the CIS had yielded a higher return, resulting in the Council re-investing the return into front line services and Councillor Gray referred to the opportunities to invest further in Huntingdonshire that had not yet materialised, but had been guided by experienced Officers. Councillor Gray concurred with the issues highlighted in relation to car parking and although the waste round reconfiguration had not delivered the savings as predicted, he was confident that the budget could be pulled back further.
It having been previously moved and seconded, upon being put to the vote it was further
(a) that the proposed overall Budget 2018/19 and Medium Term Financial Strategy (MTFS) 2019/20 to 2022/23 (Appendix 1) to include the Revenue Budgets at Section 2, the Capital Programme at Section 3 and the 2018/19 Fees and Charges (at Section 7, Annex A) be approved;
(b) that an increase of 2% in Council Tax for 2018/19 be approved, i.e the Band D Charge will increase to £138.56;
(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 1st December 2017 (and subsequent publication as a key decision).
The tax base T which is the amount anticipated from a District Council Tax of £1 is |
£60,984 |
(d) that the following amounts calculated by the Council for 2018/19 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 |
£79,634,831 |
|
(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.
|
£65,237,972 |
|
(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.
|
£14,396,859 |
|
(iv) the Council Tax requirement for 2018/19 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)
|
£236.08 |
|
(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.
|
£5,946,820 |
|
(vi) the Basic Amount of Council Tax for 2018/19 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 2018/19 |
£138.56 |
|
(vii) the basic amounts of Council Tax for 2018/19 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 21st February 2018.
|
|
|
(viii) the amounts to be taken into account for 2018/19 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 21st February 2018. |
|
|
(e) that the amounts of precept issued to the Council by Cambridgeshire County Council, Cambridgeshire Office of the Police abd Crime Commissioner, 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 2018/19 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 2018/19 is not excessive. The basic amount at b(vi) above is not excessive as defined by the Government.
Tax Base 2018/19
Abbotsley |
258 |
Holywell-cum-Needingworth |
973 |
Abbots Ripton |
130 |
Houghton & Wyton |
793 |
Alconbury |
558 |
Huntingdon |
7387 |
Alconbury Weston |
286 |
Kimbolton & Stonely |
591 |
Alwalton |
117 |
Kings Ripton |
83 |
Barham & Woolley |
29 |
Leighton Bromswold |
79 |
Bluntisham |
736 |
Little Paxton |
1557 |
Brampton |
1,911 |
Morborne |
10 |
Brington & Molesworth |
158 |
Offord Cluny & Offord D’Arcy |
505 |
Broughton |
90 |
Old Hurst |
104 |
Buckden (incorporating Diddington) |
1,173 |
Old Weston |
96 |
Buckworth |
50 |
Perry |
271 |
Bury |
621 |
Pidley-cum-Fenton |
165 |
Bythorn & Keyston |
149 |
Ramsey |
2,822 |
Catworth |
151 |
St Ives |
5,920 |
Chesterton |
61 |
St Neots |
10,963 |
Colne |
369 |
Sawtry |
1,871 |
Conington |
70 |
Sibson-cum-Stibbington |
229 |
Covington |
44 |
Somersham |
1,377 |
Denton & Caldecote |
27 |
Southoe & Midloe |
154 |
Earith |
589 |
Spaldwick |
243 |
Easton |
78 |
Stilton |
773 |
Ellington |
235 |
Stow Longa |
70 |
Elton |
290 |
The Stukeleys |
615 |
Farcet |
519 |
Tilbrook |
124 |
Fenstanton |
1,198 |
Toseland |
39 |
Folksworth & Washingley |
353 |
Upton & Coppingford |
87 |
Glatton |
130 |
Upwood & The Raveleys |
429 |
Godmanchester |
2,530 |
Warboys |
1,428 |
Grafham |
237 |
Waresley-cum-Tetworth |
145 |
Great & Little Gidding |
126 |
Water Newton |
44 |
Great Gransden |
449 |
Winwick |
46 |
Great Paxton |
368 |
Wistow |
225 |
Great Staughton |
322 |
Woodhurst |
157 |
Haddon |
25 |
Woodwalton |
84 |
Hail Weston |
246 |
Wyton-on-the-Hill |
420 |
Hamerton & Steeple Gidding |
50 |
Yaxley |
2,930 |
Hemingford Abbots |
332 |
Yelling |
151 |
Hemingford Grey |
1,274 |
|
|
Hilton |
450 |
TOTAL |
60,984 |
Holme |
235 |
|
|
(h) that future savings targets of £1.0m of Net Expenditure by 2022/23 (Appendix 2) be approved; and
(i) that the 2018/19 Treasury Management Policy, Strategy and Indicators and the Annual Minimum Revenue Policy (Appendix 3) be approved.
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, Alban, Baker, Bober, Boddington, Brown, Bucknell, Bull, Cawley, Conboy, Corley, Criswell, Davies, Dew, Dickinson, Francis, Fuller, Gardener, Gray, Greenall, Hayward, Hyland, Kadewere, Mathews, Mead, Morris, Palmer, Reynolds, Swain, Tavener, Tuplin, Tuplin, Tysoe, Underwood, West and White.
Against the Motion – Duffy, Reeve and Sanderson.
Abstentions – D Giles, S Giles, Shellens and Taylor.
Actions:60 Minutes.
Supporting documents: