Agenda item

Medium Term Financial Plan and Annual Budget 2019/20

Meeting of Cabinet, Wednesday, 6th February, 2019 10.00 am (Item 76.)

To consider the development of the Medium Term Financial Plan and to recommend to the Council the General Fund revenue and capital budgets for 2019/20 and the level of Band D Council Tax.

Decision:

Recommended:

(a) That there is a General Fund Net Budget Requirement in 2019/20 of £17,492,790 as set out in Appendix 5 to Report Item 10 to the Cabinet, including the transfers to and from reserves, as outlined in Appendix 5 (d) of the Report;

(b) That the Band D Council Tax for 2019/20 shall be £173.36; and

(c) That the General Fund Capital Programme for 2019/20 of £8.504 million, as set out in Appendix 6 to Report Item 10 to the Cabinet, be approved.

(d) That the site licence fees and service charges at Stillwater Park be increased by 3.3% in line with RPI inflation;

RESOLVED:

That a second £500,000 release from the Smarter Working budget be approved to enable further transformation of accommodation conducive to the Smarter Working standard.

Minutes:

Members were reminded of the Council’s financial strategy for 2019/20, as set out in paragraphs 3.1 and 3.2 of Report Item 10 to the Cabinet and advised that the budget had been developed in accordance with this strategy.

The Medium Term Financial Plan had been updated in the light of confirmation of the provisional financial settlement from government and updated business rates retention forecasts, together with other factors, as set out in paragraphs 4.2 and 4.3 of the report, with the updated resources summary and budget requirements set out in Appendices 1 and 2 to the report. The provisional settlement had now been confirmed, unchanged. Overall the changes were of benefit to this Council. Together with the effect of existing prudent financial planning, this would allow the Council to finance the ICT strategy directly from the General Fund in 2019/20 and still make a contribution to the budget equalisation reserve. In turn, this strong financial position in 2019/20 would enable a balanced budget over the entire medium term covered by the report, as set out in more detail in Appendix 3 to the report.

The planned use of and contributions to reserves were set out paragraph 4.8 of the report. The General Fund net budget requirement for 2019/20 was £17.493 million, as set out in Appendices 5 (a) and 5 (b) to the report, which was an increase of £250,000 against the 2018/19 budget requirement. It was noted that savings and improved income generation of £2.28 million had been used to absorb pay and price increases across the portfolios totalling £1.009 million and also to contribute towards meeting the cost of new requirements of £1.359 million.

It was proposed that the Band D Council Tax for 2019/20 would be £173.36, an increase of £5 (2.97%) from 2018/19, with the cost to be met by council taxpayers being £12,321,458.

Members were advised that there was still uncertainty, over the medium term, as a result of the potential effects of the Fair Funding Review and the final design of the 75% business rate retention scheme. The Council would continue to plan its budgets on a prudent basis using the latest known information. This proactive approach had allowed a balanced budget to be developed for each year to 2022/23 and would support financial stability in the longer term.

Members were advised that a number of pay reviews would be undertaken during 2019/20 to seek to address current problems with recruitment and retention, caused in part by pay restraints between 2010 and 2018. As a result of the potential effect of these reviews an additional sum of £100,000 had been included in the 2019/20 budget, in addition to the allowance for the agreed 2% pay increase, to meet the cost.

The proposed General Fund Capital Programme for 2019/20 totalled £8.504 million, with details set out in Appendix 6 to the report. This included funding for the further introduction of “Smarter Working” and also the potential development of a new Council depot on council-owned land at Hardley Industrial Estate.

Members were advised that it was proposed to increase the fees and charges in respect of the Stillwater Park by 3.3% in line with the September RPI inflation rate.

The comments of committees and the overview and scrutiny panels were set out in Section 8 of the report, together with the Portfolio Holder’s comments in paragraph 12.1. The proposed response to the Budget Task and Finish Group’s recommendations was set out in paragraph 12.2 of the report.