Agenda item

Cabinet Member: Finance

Forward Plan Ref: 2017/100

Contact: Katy Jurczyszyn, Strategic Finance Manager (Finance, Startegy & Monitoring) Tel: 07584 909518

Report by Director for Finance (CA6).

This report is the final report to Cabinet in the series on the service & resource planning process for 2018/19 to 2021/22, providing councillors with information on budget issues for 2018/19 and the medium term. The report sets out the draft council tax precept for 2018/19, the revenue budget for 2018/19, the Medium Term Financial Plan (MTFP) to 2021/22, the Capital Programme to 2027/28 as well as supporting strategies.  Information outstanding at the time of the Cabinet meeting will be reported to Council when it considers the budget on 13 February 2018.

Cabinet’s budget proposals take into consideration the latest information on the council’s financial position outlined in this report; comments from the Performance Scrutiny Committee meeting on 14 December 2017 as well as 4 January 2018; and comments from the public consultation on the budget.  As final notification of some funding streams is awaited, some further changes may be made to the budget proposals ahead of full Council on 13 February 2018.

The service & resource planning report to Council in February will be set out in four sections:

Section 1 – Leader of the Council’s overview

Section 2 – Corporate Plan

Section 3 – Chief Finance Officer’s statement on the budget

Section 4 – Budget Strategy and Capital Programme

This report forms the basis of Section 4 to that report and the annexes are numbered on that basis. In addition, the report also sets out for approval the review of charges which were included in the report to Cabinet in December 2017.

Cabinet is RECOMMENDED to approve:

(a)          The Review of Charges for 2018/19;

(b)          The Financial Strategy;

(c)          The Earmarked Reserves and General Balances Policy Statement 2018/19 including the creation of the Budget Prioritisation Reserve.

Cabinet is RECOMMENDED to RECOMMEND Council to approve:

(a)          in respect of revenue:

(1)          a budget for 2018/19 and a medium term plan to 2021/22, based on the proposals set out in Section 4.2;

(2)          a council tax requirement (precept) for 2018/19;

(3)          a council tax for band D equivalent properties;

(4)          virement arrangements to operate within the approved budget;

(b)          in respect of treasury management:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy for 2018/19;

(2)          to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

(3)          that any further changes required to the 2018/19 strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)          the Prudential Indicators as set out in Appendix A of Section 4.8;

(5)          Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 4.8;

(6)          The Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 4.8;

(7)          The Treasury Management Policy Statement as set out in Appendix E of Section 4.8;

(c)          In respect of capital:

(1)          The Capital Strategy for 2018/19 -2027/28

(2)          A Capital Programme for 2017/18 to 2027/28 as set out in Section 4.10.1 including:

(i)           the new capital proposals as set out in Section 4.10.2 (Appendix 3);

(ii)          the Highways Structural Maintenance Programme 2018/19 and 2019/20 as set out in Section 4.10.3;

(d)          to delegate authority to the Leader of the Council, following consultation with the Director of Finance and the Cabinet Member for Finance, to make appropriate changes to the proposed budget.

Cabinet considered the final report in the series on the service & resource planning process for 2018/19 to 2021/22, providing councillors with information on budget issues for 2018/19 and the medium term. The report set out the draft council tax precept for 2018/19, the revenue budget for 2018/19, the Medium Term Financial Plan (MTFP) to 2021/22, the Capital Programme to 2027/28 as well as supporting strategies.  Cabinet noted that information outstanding at the time of the Cabinet meeting would be reported to Council when it considers the budget on 13 February 2018.

The service & resource planning report to Council in February will be set out in four sections:

Section 1 – Leader of the Council’s overview

Section 2 – Corporate Plan

Section 3 – Chief Finance Officer’s statement on the budget

Section 4 – Budget Strategy and Capital Programme

This report considered by Cabinet formed the basis of Section 4 to that Council report and the annexes were numbered on that basis. In addition, the report also set out for approval the review of charges which were included in the report to Cabinet in December 2017.

Councillor Liz Brighouse, Chairman of Performance Scrutiny Committee noted that the papers before Cabinet were different to those considered by the Committee. Whilst recognising that this was part of the government process and timescales it had resulted in partial information being available for scrutiny which was unfair to both the Performance Scrutiny Committee and Cabinet. Councillor Brighouse referred to the annex setting out the views of the Committee at its meetings on 12 December 2017 and 4 January 2018 highlighting a number of issues. She welcomed the additional funding for Children’s Services. Responding to the comments made by Councillor Brighouse, Councillor David Bartholomew, Cabinet Member for Finance stated that all shared her frustrations at the timing of governments announcements. He thanked her and the Committee for its comments.

Councillor Helen Evans, Shadow Cabinet Member for Finance, welcomed the extra funding for children in care but remained concerned that the savings target was unrealistic in the face of rising demand. Councillor Evans expressed disappointment at increased adult care contributions with the scrapping of the flat rate fee and expressed the view that funding should be coming from central government. Councillor Evans was pleased to see that the Council would be getting a higher return on investment. She queried the Cabinet Priority Reserve which allocated £1m for undefined priorities and noted that the papers had been prepared prior to the cessation of Carillion so did not account for any associated impacts.

Councillor Bartholomew responded to the points made, disagreeing to the point made in relation to the increased adult care contributions and noting that cabinet priorities would be announced before the budget was set and would be in the public domain.

Councillor Bartholomew introduced the contents of the report and moved the recommendations.

RESOLVED:             to approve:

(a)          The Review of Charges for 2018/19;

(b)          The Financial Strategy;

(c)          The Earmarked Reserves and General Balances Policy Statement 2018/19 including the creation of the Budget Prioritisation Reserve.

Cabinet is RECOMMENDED to RECOMMEND Council to approve:

(a)          in respect of revenue:

(1)          a budget for 2018/19 and a medium term plan to 2021/22, based on the proposals set out in Section 4.2;

(2)          a council tax requirement (precept) for 2018/19;

(3)          a council tax for band D equivalent properties;

(4)          virement arrangements to operate within the approved budget;

(b)          in respect of treasury management:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy for 2018/19;

(2)          to continue to delegate the authority to withdraw or advance additional funds to/from external fund managers to the Treasury Management Strategy Team;

(3)          that any further changes required to the 2018/19 strategy be delegated to the Director of Finance in consultation with the Leader of the Council and the Cabinet Member for Finance;

(4)          the Prudential Indicators as set out in Appendix A of Section 4.8;

(5)          Minimum Revenue Provision Methodology Statement as set out in Appendix B of Section 4.8;

(6)          The Specified Investment and Non Specified Investment instruments as set out in Appendix C and D of Section 4.8;

(7)          The Treasury Management Policy Statement as set out in Appendix E of Section 4.8;

(c)          In respect of capital:

(1)          The Capital Strategy for 2018/19 -2027/28

(2)          A Capital Programme for 2017/18 to 2027/28 as set out in Section 4.10.1 including:

(i)            the new capital proposals as set out in Section 4.10.2 (Appendix 3);

(ii)          the Highways Structural Maintenance Programme 2018/19 and 2019/20 as set out in Section 4.10.3;

(d)          to delegate authority to the Leader of the Council, following consultation with the Director of Finance and the Cabinet Member for Finance, to make appropriate changes to the proposed budget.