Agenda item

To consider a report which presents Executive’s proposed revenue budget; capital programmes and outline Programme for Growth for 2019/20 to 2021/22.

In accordance with The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, all local authorities must record in their minutes how each Councillor voted (or abstained from voting) on the question of Budget and Council tax setting at the ‘Budget Decision Meeting’ of the Council. This rule will therefore apply and a recorded vote will be taken on this item.

Councillor Lunn, Lead Executive Member for Finance and Resources provided a presentation on Executive’s proposed revenue budget, capital programmes and outline Programme for Growth, for 2019/120 to 2021/22.

The key elements of the presentation were:

·         In its financial strategy, the Council was taking a long term view of resources and spending and managing down the ongoing revenue budget in line with in year funding through efficiency savings and growing income.

·         The budget risks included the reduction and uncertainty of Government funding, rates retention being currently under review, a rent reduction of 1% imposed for 2019/20 and concerns over the impact of Brexit and any other wider economic impacts.

·         There were significant revenue and capital investments proposed over the next three years with around £10.1m from the General Fund (GF) and £14.5m from the Housing Revenue Account (HRA).

·         The Provisional Local Government Finance Settlement includes business rates baseline funding being increased to £2.427m to reflect the 75% pilot in 2019/20. Furthermore, an additional £340k will be received for the New Homes Bonus for 2019/20.

·         The GF presents a balanced budget which includes increased service commitments for areas such as recycling credits and housing benefit grant. The planned efficiencies and income growth are estimated at £1.1m.

·         The HRA was showing a net revenue surplus of £3.2m before the funding for the capital programme for 2019/20. This includes a 1% reduction is housing rents and £214k of planned savings.

·         A council tax increase of £3 for a Band D property was being proposed which would result in an approximate increase of 1.71%.

Concern was raised around the vacancy levels and impact this could have on current staff who may have to pick up extra duties. The Lead Executive Member for Finance and Resources explained that this was reflecting what was actually happening and no added impact was expected.

Discussion took place on the proposals put forward and it was felt that the proposed £2 saving on council tax for a Band D property would result in minimal savings for residents when taking into account precept increases from other authorities along with the relevant parish. Concern was raised that by not increasing council tax by the maximum £5 for a Band D property would result in reduction in council tax over the year of £62k.

With regard to the proposed council tax increase, the Lead Executive Member for Finance and Resources explained that the Council had always aimed to keep the rise below inflation and had kept the same practice when proposing the current rise.

Council attention was drawn to the council tax figures in the amended appendices A to C that had been circulated following the agreement of the precept by the Police, Fire and Crime Commissioner.

In line with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the Chairman explained that a recorded vote must be taken on the proposals which had been put forward as outlined in the report.

For the proposal: Fifteen

Councillors K Arthur, D Buckle, J Cattanach, I Chilvers, J Chilvers, M Crane, J Deans, M Hobson, C Lunn, D Mackay, J Mackman, C Metcalfe, C Pearson, I Reynolds, and D White.

Against the proposal: Seven

Councillors S Duckett, M McCartney, W Nichols, B Packham, J Shaw-Wright, J Thurlow and P Welch.

Abstain: None

The motion to approve the recommendations as outlined in the report and the amended appendices was carried.

RESOLVED:

i)             To approve the revenue budgets, savings, capital programme and programme for Growth at Appendices E to K;

ii)            To increase Council Tax by £3 to £178.22 for a Band D property for 2019/20;

iii)           To  confirm an empty homes premium equivalent to 100% of the Council Tax charge i.e. to charge 200% of the Council Tax liability on a property that has been empty and substantially unfurnished for more than 2 years, with effect from 1 April 2019;

iv)          To consider and approve the formal Council Tax resolution set out in the amended Appendix B;

v)            To transfer the Surplus of £3.219m on the HRA to the Major Repairs Reserve to support the capital programme;

REASON FOR DECISION:

To ensure the Executive’s budget proposals are fully funded for 2019/20.

Councillor John Cattanach left the meeting at this point and did not return.