Meeting documents

Cabinet considered the report which provided information affecting the Council’s revenue budget for 2016/17 in order for the Cabinet to make recommendations to Council on 24 February 2016 regarding the Council’s Budget and Council Tax for 2016/17.

 

The Director of Resources advised that the report was based on the following assumptions:

 

• Government (RSG) funding assumed to reduce in line with the information contained in the provisional Local Government Settlement, including the effect of the additional tariff
• The forecast growth in business rates for 2016/17 (£300K after 50% levy) was assumed to be sustained over the period, and that full retention of business rates come into effect in 2019/20, enabling all the growth to be retained locally
• The changes outlined in the consultation on New Homes Grant were assumed to come into effect from 2017/18.  An allowance had been made for the impact of the Newlands Park development
• Service expenditure assumed to increase for planning purposes by broadly 2.5% per annum approximately as a result of cost pressures
• Council tax assumed to increase by 1.99% per annum after 2016/17

 

The Director of Resources provided a verbal update on the recent announcement of the Final Local Government Finance settlement. The Additional Tariff (Negative RSG) element of the provisional settlement has been removed for 2017/18 and 2018/19; a new transition grant has been introduced for 2016/17 and 2017/18 to ease the impact of the RSG withdrawal; and all district councils were now permitted to increase Council Tax by £5 on a Band D property.  The impact for Chiltern District was to receive a transition grant of £134,000 and an increase in Council Tax would provide £81,000 which was a total of £215,000 additional resources for 2016/17.

 

The Deputy Leader / Portfolio Holder for Support Services added that the Finance Settlement was encouraging for the short term, and it was good  that the Secretary of State had listened and accepted the concerns of local authorities and the next three years were more positive, but the  issues from 2019/20 of the negative RSG remained a significant concern.  He advised that members needed to plan now for a longer term impact on available funding, and in the context of the funding of the capital programme take the opportunity in 2016/17 to provide additional resources. Decisions on the level of council tax increase are made each year and it was prudent at this stage to  accept the offer of increasing up to £5 for 2016/17..

 

The Director of Resources advised that revised figures for the recommendations to Council had been produced within an extremely tight timescale due to late receipt of the most up to date information on the Local Government Finance settlement and therefore final figures would be clarified and agreed with the Portfolio Holder for Support Services prior to finalising the report to be submitted to Council.

 

RECOMMENDED TO COUNCIL:

 

Revenue Budget 2016/17

 

1)    That the Revenue budget for 2016/17 as summarised in the table in paragraph 5.14 of the report be approved;

 

2)    That, it be agreed, in total £29,000 be provided to Chiltern District Council parishes in respect of the impact of Council Tax Scheme on their tax bases for 2016/17;.

 

3)    That the following use of earmarked reserves for 2016/17 be agreed:

             - Local Development Plan £163,500

 

4)    That the following additions to earmarked reserves for 2016/17 be agreed:

            Capital - Funding replacement refuse vehicles, £394k

Capital - Funding of future capital programme, £1,412k.

 

5)    That a budget requirement of £10,710k, which will result in a District council tax of £170.62 for a Band D property be approved.

 

6)    That the level of fees and charges for 2016/17 already considered by Portfolio Holders as part of the information underpinning their budgets be confirmed;

 

7)    That the advice of the Director of Resources (Appendix A) be noted.

 

RESOLVED:

 

Setting the Council Tax

 

8)    That this report be made available to all Members of the Council in advance of the Council Tax setting meeting on 24th February 2016, and a final report is produced for the Council meeting incorporating the information from preceptors, and the final decisions of the Cabinet on the budget.

 

RESOLVED:

 

Medium Term Financial Strategy

 

9)    To note the comments in the report on the Council’s financial position in respect of the years following 2016/17.