Agenda item

The Portfolio Holder for Finance, IT and Customer introduced this report which set out the recommendations of Cabinet for Revenue and Capital Budgets for 2017/18 and sets out the recommendations for setting the 2017/18 Council Tax.  In summary the Council’s updated Medium Term Financial Strategy (MTFS) as reported to Cabinet indicated a forecast budget shortfall of £2.728m for 2017/18 (from a budget of £8m).  The Council had a duty to deliver a balanced budget.

Cabinet proposed an increase in council tax for 2017/18 of £5.00 per month from the 2016/17 amount, the maximum amount permitted without triggering the need for a referendum.  This represented an increase of 2.77 per cent from 2016/17.  Detailed recommendations were set out in Appendix A of the report.  The Portfolio Holder stated that over 95 per cent of local authorities were increasing Council Tax by the maximum amount.  Appendix B sets out the proposed Revenue Budget for 2017/18.  A summary of additional income, additional expenditure and loss of income and new pressures was given in the report.  The Portfolio Holder drew Members’ attention to the financial pressure on local authorities who were expected to be self-funding by 2020.

A summary of savings and funding strategies to bridge the £2.728m gap had been identified and agreed with managers and were given at Appendix C, including staff efficiencies. The impact that savings were having on the Council was acknowledged, with posts being frozen or unfilled.  Services continued to be delivered to a high standard.  Staff had shown flexibility in their ability to adapt to increasing use of technology to save money. 

A review of the Council’s Balances and Reserves together with a risk assessment had been carried out. Details were given in Appendices D and E.  The MTFS and budget proposals had been scrutinised by the Finance, Resources and Partnerships Scrutiny Committee.  The Portfolio Holder thanked Members for their comments. 

With reference to the reduction in funding for Parish Councils, Parish Councils were thanked for their co-operation and support for the work that they do. 

The next publication of the Reporter would be final edition, following which it would cease production. 

The Capital Programme for 2017/18 was given in Appendix F of the report together with the Prudential Indicator relating to the Incremental Impact of Capital Investment Decisions on the Council Tax, as set out in paragraph 8.10.  This showed that the Council was constrained by the availability of funding.  All items listed in the programme are those most urgently required and these had been carefully assessed against health and safety risks or to safeguard income from commercial properties.  Only a basic programme of new schemes is proposed for approval in 2017/18.  The importance of integrating the revenue and capital budgets was stressed.  The emphasis will now be on speeding up the disposal of surplus land that has been approved for sale.  This will enable the Council to achieve its policy objective of bringing forward more affordable and social housing.  Expenditure on a small number of new schemes will be being deferred until at least 2018/19. Going forward the commercial portfolio will be reviewed.

Officers agreed to review the non-delivery of the Reporter to Porthill residents.

No alternative budget had been proposed. 

A named vote was taken in respect of the proposed budget.

In Favour - 35

Against - 14

Abstain - 6

Resolved:    That the recommendations set out in Appendix ‘A’ of the agenda report be approved.