Agenda item

To consider a report which presents Executive’s proposed revenue budget; capital programmes and outline Programme for Growth for 2018/19 to 2020/21.

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 to this item 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 2018/19 to 2020/21 following public consultation. It was noted that updated figures relating to the Council Tax base and precept following the North Yorkshire County Council meeting and some other minor amendments had been circulated to all of the Councillors.

The key elements of the presentation were:

·         Under the Government’s multi-year finance settlement, core funding would reduce by 36.2% over 5 years from 2016/17 to 2019/2020.

·         The New Homes Bonus would be reducing to a four year scheme in 2018/19, from a six year scheme in 2016/17 and a five year scheme in 2017/18 which would result in a £1m per annum reduction in funding over the two years.

·         The renewable energy business rates windfall was confirmed at £7.8m and Council noted the proposed transfer to reserves in accordance with the approved Medium Term Financial Strategy. It was uncertain whether power stations would be removed from the Local Government rating list going forward which may impact on future business rates receipts.

·         The proposed budget assumed a £5 increase per annum in Council Tax for a band D property which on average worked out to be less than 10p a week.

·         With regard to the Housing Revenue Account (HRA), the 2018/19 budget showed a £864k surplus on the HRA, which was required to fund the housing capital programme.

·         The draft budget showed a deficit of around £1.5m by 2020/21 before the delivery of further savings and the report identified the savings plans in progress.

·         The budget proposals also included sizeable capital programmes - £15.6m for the General Fund and £12.5m for the HRA. A large proportion of the programmes relate to affordable housing delivery through Selby and District Housing Trust and the Council’s own HRA.

·         £10m of cash resources had been allocated to the Programme for Growth and the report noted that following the corporate peer challenge the programme would be reviewed with detailed proposals coming forward for approval in line with the approved governance arrangements for the programme.

Discussion took place on the proposals put forward and it was stated that there needed to be greater transparency over the spending from the Special Projects Reserve. Concern was also raised at the lack of effort in the budget proposals to take action against the austerity measures imposed on issues such as the National Health Service, fly tipping and the state of repair in schools.

The Lead Executive Member for Finance and Resources explained that the areas referred to were outside of the control of the Council and the budget has sought to use the income received from business rates to invest in the district.

In response to a further concern raised at the proposed increase in council tax overall, the Lead Executive Member for Finance and Resources explained that at less than 10p per week for a Band D property, the rise proposed by the Council was relatively minor in relation to the overall total bill.

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: Twenty

Councillors K Arthur, D Buckle, I Chilvers, J Chilvers, M Crane, J Deans, K Ellis, M Hobson, D Hutchinson, C Lunn, D Mackay, J Mackman, C Metcalfe, R Musgrave, C Pearson, D Peart, I Reynolds, B Sage, R Sweeting and D White.

Against the proposal: Seven

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

Abstain: None

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

RESOLVED:

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

ii)            To increase Council Tax by £5 to £175.22 for a Band D property for 2018/19;

iii)           To  confirm an empty homes premium equivalent to 50% of the Council Tax charge i.e. to charge 150% 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 2018;

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

v)            To finance the General Fund Deficit of £358k from the Business Rates Equalisation Reserve and the Surplus of £864k on the HRA be transferred to the Major Repairs Reserve to support the capital programme;

REASONS FOR DECISION

To meet the Council’s statutory obligations to set a balanced budget and a set a Council Tax for 2018/19 which is not excessive.