Meeting documents

To consider the attached report.

 

Contact Officer:  Nuala Donnelly (01296) 585164

The Scrutiny Committee received a report on the draft budget proposals for 2019/20 that had been considered by Cabinet in December 2018.  The full details of the budget information and background concerning the budget proposals were set out in the minutes of that Cabinet meeting.

 

On 16 January, 2019, Cabinet would be agreeing the final recommendations to be proposed to full Council on the draft budget for 2019/20 which included the Medium Term Financial Plan (MTFP), the proposed level of Council Tax, and proposed fees and charges for 2019/20.  In summary, Cabinet would be asked to recommend to Council the budget for 2019/20 and the MTFP including:-

(a)          To take into budget planning the £1.916 million of proposed savings as set out within paragraph 4.6 of the 18 December, 2018 report.

(b)          To take into budget planning the £2.354 million of forecast pressures as set out within paragraphs 5.2 and 5.3 to the same report.

(c)          To increased Council tax by an annual amount equivalent to £5.00 (3.35%) for a Band D property (equivalent to less than 10 pence per week) from 1 April, 2019.

(d)          To the use of £1.48m of New Homes Bonus to meet the costs of the Connected Knowledge Programme in 2019-20.

(e)          To agree the proposed fees and charges as set out in Appendix E to the report.

(f)           For the level of the Band D Special Expenses charge for 2019/20 to remain unchanged (at £45) from the initial budget proposals.

 

The Scrutiny Committee was asked to indicate any comments / feedback that it wished Cabinet to take into account in recommending the budget to full Council.

 

The Cabinet report highlighted that there was still uncertainty around a number of issues particularly further reductions in Government Grant, retained business rates and the New Homes Bonus.  In the few weeks since the initial proposals had been considered by Cabinet, work had continued to refine the budget assumptions.  In practice, little had materially changed at a service level and so the significant elements of the final budget proposals were around the impact of the proposed Government Grant numbers and changes to other centrally funded support.

 

Members were asked to note the outcome of the provisional local Government settlement for 2019/20 announced on 13 December 2018 and the impact on the final budget proposals.  The main factors of the finance settlement were:

·                    Updated Core Spending Power figures.

·                    Confirmation of continuing cuts to RSG.

·                    Removal of Negative RSG.

·                    Increases to RSDG (+£16m) and NHB (+£18m) Funding.

·                    £180m released from the BRR levy account.

·                    Provisional Social Care Allocations of £650m  (Budget 2018).

·                    15 new 75% Pilot areas announced for 2019/20 (and 7 back to 50%).

·                    No changes to the Council Tax referenda principles (aside from Police).

 

Specifically for AVDC:-

·                    The important numbers of Revenue Support Grant and Baselined Business Rates were virtually the same as those announced for 2019/20 last year within the 4 year settlement.  2019/20 represented the last year of the 4 year settlement.

·                    AVDC was better off by £690,000 due to the removal of Negative Revenue support grant.  This non-recurrent benefit had largely been foreseen and had been earmarked to support growth.

·                    Buckinghamshire had been awarded Pilot Status for 75% Business Rates Retention in 2019/20.  The actual gain from this wouldn’t be known until the year end but it was estimated this could be circa £1.6 million for AVDC.

·                    The Government had heeded sector concerns about the dangers of reducing the benefit from NHB and had decided to leave the thresholds unchanged.  AVDC would therefore receive £5.9 million next year under this scheme, approximately £100,000 more than estimated.

 

The final funding allocation for the 2019/20 settlement will be laid before the House of Commons in February 2019.

 

Members referred to the Cabinet reports, updated information and appendices whilst considering this matter.  They requested further information and were informed:-

 

(i)            that the agreement to participate in the new 75% business rates retention pilots 2019/20 had been due to agreement across Councils on how additional money would be used and a desire for greater co-operation.

 

(ii)           with an explanation was provided on the need to make the budget provision of £250,000 made in relation to anticipated reductions to rent and service charge recovery across the Council.

 

(iii)          with details of the ongoing legal challenge to a significant group of rateable properties within the Vale.  It was unlikely that this matter would be considered by the courts before October 2019.

 

Officers agreed that consideration could be given to including this issue in the Council’s Risk Register.

 

(iv)         that the provisions for car parking changes (Cabinet report paragraphs 6.20 and 6.21) related to changes in Aylesbury only.  It would be difficult to make provisions for car parking changes at Wendover, Winslow and Buckingham as this information would not be known until reports came forward later in the year.  However, the Council maintained a car parking reserve which could be utilised to fund changes for these locations.

 

(v)          that while the Government met the cost of Universal Credits benefits paid to people, the Council had some residual administration costs that had to be paid for.

 

(vi)         that Staff Side and unions were balloting staff on a 2.5% pay settlement for 2019/20.  If approved by staff, then the matter would be submitted to full Council for final approval.

 

(vii)        that the Council believed that the £5m earmarked would be sufficient to meet AVDC’s share of transition costs to the new Buckinghamshire Council.

 

(viii)       that AVDC was a leader amongst Councils in investing in IT and customer interface solutions.  As such, the commitment of £1.48m of NHB monies in the budget to meet the costs of the Connected Knowledge Programme in 2019/20 would ensure that completed work was able to be handed over to the new Council in the best possible state.

 

(ix)         that the increase in the total budget of the Aylesbury Special Expenses of £38,200 was due to an increase in the Council tax base.  The level of the Band D Special Expenses charge for 2019/20 was proposed to remain at £45 p.a.  Information on expenditure against the Aylesbury Special Expenses was reported quarterly to the scrutiny committee with the Finance Digest.

 

(x)          that Cabinet had approved a new contract for materials recycling in April 2018.  The contract had been awarded following a procurement exercise that had been undertaken jointly with Cherwell District Council.

 

(xi)         that the Council had a separate reserve provision relating to business rates appeals.

 

(xii)        that the primary cost associated with resources for the Connected Knowledge Programme (Appendix F) related to staffing costs for projects.

 

(xiii)       that clarification on the fees and charges for Play Services and Play Around the Parishes (Cabinet report, Appendix E) would be provided to Cabinet.  For example, the Jonathan Page Play Centre was now operated by the Aylesbury Town Council.

 

(xiv)      by the Cabinet Member for Communities that he would be asking Cabinet to re-instate £10,759 in funding for a number of voluntary and community sector organisations including the Citizens’ Advice Bureau.  He would also be exploring whether it would be possible to extend the grant funding arrangements with some of these organisations for 1-2 more years to provide them with some certainty while the new Council was being established.

 

Members also commented:-

·                    that they were supportive of the monies from the Interest Equalisation Reserve and the Business Rates Equalisation Reserve being earmarked and used to offset the transition cost of local Government reorganisation.

·                    that, should the Cabinet be minded to recommend to Council the £1.48m in funding for Connected Knowledge, the Council needed to ensure that the individual business cases within the programme were assessed on the likelihood of the work/benefits that might be able to be carried forward into the new Council before investment decisions were made.  This included looking at expenditure that could reasonably be deferred.

·                    that increases in Council tax should be used primarily to fund the provision of services to residents.

·                    that they were supportive of the extra £690,000 that the Council would have due to the removal of Negative Revenue Grant support being earmarked to support growth.

·                    that they were supportive of another bidding round of NHB grants being made available to parishes during 2019-20.

 

RESOLVED –

 

(1)          That the scrutiny committee was supportive of Cabinet’s budget proposals for 2019/20 together with the Medium Term Financial Plan, as detailed in the reports to Cabinet on 18 December 2018 and 16 January 2019.

 

(2)          That Cabinet be asked to take into account scrutiny’s comments in finalising the budget proposals for 2019/20 to be submitted to full Council.