Meeting documents

The Cabinet received a report setting out the proposed Revenue Budget for 2017/18, which would form the basis for setting the Council’s proportion of Council Tax, being recommended for approval by the Council.

Whilst considering the report, the Cabinet noted that the Resources Overview Committee had considered the report at the meeting held on 31 January and were supportive of the recommendations. The Support Services Policy Advisory Group had also discussed the revenue budget and in particular how the surplus within the budget for 2017/18 should be deployed across the Council’s earmarked reserves.

The report’s key points were then outlined as follows:

·        The Council’s finance settlement, the funding received from the Government, was as expected.

·        There would also be a reduction in Council income from investments due to low interest rates and use of reserves to support capital expenditure and key projects.

·        There were changes to the New Homes Bonus.

·        The proposed budget was based on a 2.9% increase in District Council Tax which amounted to a £5 increase for a Band D property.

·        There would be a revenue surplus of £1.2M in 2017/18.

·        The Medium Term Financial Strategy showed that the Council was taking a more cautious view on funding due to the likely reduction in funding from Government after 2019/20.

·        The advice from the Section 151 (Chief Finance) Officer was noted which showed the budget had been properly prepared, financial risks identified and how they would be managed and that the Council would be comfortably above the prudent minimum level of reserves.

During consideration of the report the Cabinet noted the other options available to the Council:

1.      That there be no increase in the Council’s element of Council Tax which would result in less resource being available to fund the capital programme and funding gap in future years.

2.      That the Council increase its element on Council Tax by more than the referendum threshold of 2% (£5 for a band D property), considered unrealistic, due to the risk that electors do not support the increase and the cost of holding a referendum.

During the discussion, the rate at which the Council’s level of Government funding would be reduced to zero was highlighted. The rate of change was particularly high for 2016/17 which had represented a 29% reduction. The Council was therefore praised for its financial management.  The Council had worked very hard over the past five years to produce financial savings and defer the point at which significant additional savings were required despite the substantial reduction in funding from the Government. Thanks were expressed to Heads of Service in particular for their work in relation to the budget setting process. The Council had developed a proven method of managing the budget, and should be proud of the way that the Council’s finances had been managed.

The Cabinet then

AND RESOLVED:

Setting the Council Tax

8) That the report be made available to all Members of the Council in advance of the Council Tax setting meeting on 28th February, 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.

Medium Term Financial Strategy

9) To note the comments in the report on the Council’s financial position in respect of the years following 2017/18.