Agenda item

Report of the Strategic Director of Finance and Customer Services

Recommendations:-

That Cabinet recommend to Council

1.    Approval of the Budget and Financial Strategy for 2019/20 and 2020/21 as set out in the report and appendices, including the £23.536m of savings as set out in Appendix 1 and a basic Council Tax increase of 2.99%.

2.    Approval of the updated Medium Term Financial Strategy (MTFS).

3.    Approval of the proposed use of reserves as set out in Section 2.7 noting that the final determination will be approved as part of reporting the financial outturn for 2018/19.

4.    That Council notes and accepts the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides (Section 2.12).

5.    That Council notes the consultation feedback from the public, partners and trade unions following publication of Directorate budget savings proposals on the Council’s website for public comment from Friday 26^th October 2018 to 30^th November 2018 (Section 4).

6.    Approval of the Council Fees and Charges schedules for 2019/20 attached as Appendix 6.

7.    Approval of the proposed increases in Adult Social Care provider contracts as set out in Section 2.5

8.    That the Council applies the Business Rates Retail Discount for 2019/20 in line with Government guidance.

9.    That the Council continues to apply the Business Rates Rural Relief Scheme for 2019/20 in line with Government guidance.    

10.Approval that the annual determination of the Council Tax Base is delegated to the Director of Finance and Customer Services (Section 151 Officer) in consultation with the Leader of the Council and the Chief Executive.

11.Approval of the use of in-year Capital Receipts up to 2021/22 to maximise capitalisation opportunities arising from service reconfiguration to deliver efficiencies and improved outcomes for clients and residents, and thereby minimise the impact of costs on the revenue budget as included in the Flexible use of Capital Receipts Strategy 2019/20 (Appendix 4).

12.Approval of the proposed Capital Strategy and Capital Programme as presented in Section 2.11 and Appendices 2A to 2E. 

13.That the approved Capital Programme budget be managed in line with the following key principles:

i.      Any underspends on the existing approved Capital Programme in respect of 2018/19 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2018/19 report to Cabinet.

ii.    In line with Financial and Procurement Procedure Rules 6.17 and 13.9, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.  

iii.   Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

iv.   Approval of the Treasury Management Matters for 2019/20 as set out in Appendix 3 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.

Consideration was given to the report which proposed the Council’s Budget and Council Tax for 2019/20 based on the outcome of the Council’s Final Local Government Finance Settlement, budget consultation and the consideration of Directorate budget proposals through the Council’s formal Budget and Scrutiny process (Overview and Scrutiny Management Board) alongside a review of the financial planning assumptions within the Medium Term Financial Strategy. 

The Council remained committed to protecting the most vulnerable children and adults, but despite the positive direction of travel for the Council, the challenges were still significant in the following areas:-

·             Children’s social care continued to overspend over and above the significant additional resources that have been provided for the service in recent years.

·             More children than anticipated required care and protection by the local authority.

·             Implications for support services as the increase in looked after children numbers had led to additional legal costs.

·             Adult Care budgets continued to be under pressure due to demographic pressures.

In setting the proposed 2019/20 budget, Cabinet were asked to recommend to Council an increase of 2.99% in the Council’s basic Council Tax.

Reference was also made to the proposals to balance the revenue budget for both 2019/20 and 2020/21. The Budget and Council Tax Report 2018/19 highlighted the need to address a £30m financial gap over the period 2019/20 and 2020/21. The Council had identified a number of budget options to address this gap which were set out in detail as part of the report.

The Deputy Leader pointed out that the overspending against budget in Children’s and Young People’s Services Directorate was continuing in the current financial year as a result of demand for services outstripping budget capacity. The budget pressure had been increasing month on month due to a steady rise in numbers of children on Child Protection Plans, Looked After Children and Children in Need, but this position was now beginning to stabilise and it was expected that with a sustainable reduction the numbers would come down.

Councillor Alam wished to pass on his own thanks and appreciation to all those involved in the budget process and shared his own concerns about the year on year budget reductions from Central Government.

Councillor Beck referred to the budget contributions from the New Homes Bonus and Council Tax and the support to the wider Council from the Housing Revenue Account.

The Section 151 Officer referred to the delivery of the savings, how the risks were managed and how the Reserves Strategy included a commitment to replenish the reserves being used to support the budget giving a more secure position.

This report had been considered by the Overview and Scrutiny Management Board as part of the pre-scrutiny process who were in support of the recommendations, especially in light of the continued support to Sight and Sound and Healthwatch and the savings that would be produced from a full review of Democratic Services.

Resolved:-  That Council be asked to:-

1.     Approve the Budget and Financial Strategy for 2019/20 and 2020/21 as set out in the report and appendices, including the £23.536m of savings as set out in Appendix 1 and a basic Council Tax increase of 2.99%.

2.     Approve the updated Medium Term Financial Strategy (MTFS).

3.     Approve the proposed use of reserves as set out in Section 2.7 noting that the final determination will be approved as part of reporting the financial outturn for 2018/19.

4.     Note and accept the comments and advice of the Strategic Director of Finance and Customer Services (Section 151 Officer), provided in compliance with Section 25 of the Local Government Act 2003, as to the robustness of the estimates included in the Budget and the adequacy of reserves for which the Budget provides (Section 2.12).

5.     Note the consultation feedback from the public, partners and trade unions following publication of Directorate budget savings proposals on the Council’s website for public comment from Friday 26^th October 2018 to 30^th November 2018 (Section 4).

6.     Approve the Council Fees and Charges schedules for 2019/20 attached as Appendix 6.

7.     Approve the proposed increases in Adult Social Care provider contracts as set out in Section 2.5

8.     Apply the Business Rates Retail Discount for 2019/20 in line with Government guidance.

9.     Continue to apply the Business Rates Rural Relief Scheme for 2019/20 in line with Government guidance.    

10.   Approve that the annual determination of the Council Tax Base is delegated to the Director of Finance and Customer Services (Section 151 Officer) in consultation with the Leader of the Council and the Chief Executive.

11.   Approve the use of in-year Capital Receipts up to 2021/22 to maximise capitalisation opportunities arising from service reconfiguration to deliver efficiencies and improved outcomes for clients and residents, and thereby minimise the impact of costs on the revenue budget as included in the Flexible use of Capital Receipts Strategy 2019/20 (Appendix 4).

12.   Approve the proposed Capital Strategy and Capital Programme as presented in Section 2.10 and Appendices 2A to 2E. 

13.   Agree that the approved Capital Programme budget be managed in line with the following key principles:-

(i)          Any underspends on the existing approved Capital Programme in respect of 2018/19 be rolled forward into future years, subject to an individual review of each carry forward to be set out within the Financial Outturn 2018/19 report to Cabinet.

(ii)         In line with Financial and Procurement Procedure Rules 6.17 and 13.9, any successful grant applications in respect of capital projects will be added to the Council’s approved Capital Programme on an ongoing basis.  

(iii)        Capitalisation opportunities and capital receipts flexibilities will be maximised, with capital receipts earmarked to minimise revenue costs.

(iv)       Approval of the Treasury Management Matters for 2019/20 as set out in Appendix 3 of this report including the Prudential Indicators, the Minimum Revenue Provision Policy, the Treasury Management Strategy and the Investment Strategy.