Agenda item

Report by Director of Finance (CC8).

This report is the culmination of the service & resource planning process for 2018/19 to 2021/22. It sets out the Cabinet’s proposed budget for 2018/19, medium term financial plan and capital programme, together with a number of statements/policies that the Council is required to approve for the 2018/19 financial year.

The report is divided into four main sections which are outlined below:

Section 1 – Leader of the Council’s overview

Section 2 – Corporate Plan

Section 3 – Statutory Report by the Director of Finance (Chief Finance Officer)

Section 4 – Budget Strategy and Capital Programme

The Council is RECOMMENDED to:

(a)          have regard to the report of the Director of Finance (at Section 3) in approving recommendations b to e below;

(b)          (in respect of revenue) approve:

(1)          the council tax and precept calculations for 2018/19 set out in section 4.3 and in particular:

(i)           a precept of £352,041,895;

(ii)          a council tax for band D equivalent properties of £1,426.19;

(2)         a budget for 2018/19 as set out in section 4.4;

(3)         a medium term plan for 2018/19 to 2021/22 as set out in section 4.1 (which incorporates changes to the existing medium term financial plan as set out in section 4.2; and, subject to Cabinet approval on 12 February 2018, as Accountable Body for the Oxfordshire Housing and Growth Deal, includes £4.5m capacity funding (noting a further £0.5m will be received in 2017/18);

(4)         the use of Dedicated Schools Grant (provisional allocation) for 2018/19 as set out in section 4.8; and

(5)         virement arrangements to operate within the approved budget for 2018/19 as set out in section 4.5;

(c)          (in respect of balances and reserves) approve:

(1)         the Chief Finance Officer’s recommended level of balances for 2018/19 as set out in section 4.7.1; and

(2)         the planned level of reserves for 2018/19 to 2021/22 as set out in section 4.7.2;

(d)          (in respect of treasury management) approve:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy for 2018/19 as set out in section 4.9;

(2)          the continued delegation of 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 Chief Finance Officer 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 4.9;

(5)          the Minimum Revenue Provision Methodology Statement as set out in Appendix B of section 4.9;

(6)         the Specified Investment and Non Specified Investment Instruments as set out in Appendix C and D of section 4.9; and

(7)         the Treasury Management Policy Statement as set out at Appendix E of section 4.9;

(e)          (in respect of capital) approve:

(1)         the Capital Strategy as set out in Section 4.10; and

(2)         a Capital Programme for 2018/19 to 2027/28 as set out in section 4.10.1 which:

(i)           subject to Cabinet approval on 12 February 2018, as Accountable Body for the Oxfordshire Housing and Growth Deal, includes £150m funding for Infrastructure and £60m for Affordable Housing;

(ii)         includes the Highways Structural Maintenance Programme 2018/19 and 2019/20 in section 4.10.3.

The Council had before it a report (CC8) which outlined the service & resource planning process for 2018/19 to 2021/22, set out the Cabinet’s proposed budget for 2018/19, together with the medium term financial plan and capital programme and a number of statements/policies that the Council was required to approve for the 2018/19 financial year.

The report was divided into four sections; the Leader of the Council’s overview (section 1), the Corporate Plan (section 2) the Director of Finance’s statutory report (section 3) and the Budget Strategy and Capital Programme (Section 4).

The Council also had before it budget proposals in the form of:  Amendments by the Labour Group to the Cabinet’s Revenue Budget (CC8 Labour) and Amendments by the Liberal Democrat Group to the Cabinet’s Revenue Budget (CC8 Lib Dem) (Additional Papers Pack 2), together the schedule of Business.  All papers could be found on the Council’s Website.

The Chairman explained to the meeting that following consultation with the Group Leaders, it had been agreed that, subject to the consent of Council recommendation (a) (Corporate Plan) set out in the Schedule of Business should be taken separately from the Budget proposals.  Accordingly, the motion was put to the vote and it was:

RESOLVED: (nem con) to take recommendation (a) separately.

With the consent of Council, Councillor Hudspeth moved and Councillor Brighouse seconded recommendation (a) as set out in the revised recommendations in the Schedule of Business.

During debate councillors expressed views that there was no explicit link between the Corporate Plan and the budget; that the corporate plan should be shorter and more focused, include performance measurement; be more strategic and have greater emphasis on future plans and how these would be achieved and demonstrate leadership.  It was also commented on that the plan missed out further education.

Following debate, the motion was put to the vote and was carried by 46 votes to 4, with 11 abstentions.

RESOLVED: (by 46 votes to 4, with 11 abstentions)

(a)          to consider and comment on the Draft Corporate Plan 2018 – 2021 as set out in Section 2.0, such comments to be considered by the Cabinet at its meeting on 27 February, before it is formally adopted by Council in March;

Councillor Hudspeth then moved and Councillor Bartholomew seconded the Cabinet’s recommendations on Service & Resource Planning 2018/19 – 2021/22.  In moving the motion, Councillor Hudspeth paid tribute to Lorna Baxter and Katie Jurczyszyn for all their work in preparing the budget.

Councillor Brighouse moved and Councillor Evans seconded an amendment to the Cabinet’s budget as set out in the Additional Papers Pack 2 (CC8 Labour). Councillor Brighouse thanked the Director of Finance and her team for their help and support.

Following debate, the amendment was put to the vote and was lost by 35 votes to 15, with 13 abstentions.

Councillor Webber moved and Councillor Roz Smith seconded an amendment to the Cabinet’s budget as set out in the Additional Papers Pack 2 (CC8 Lib Dem). In moving his motion, Councillor Webber paid tribute to Lorna Baxter and her team for their help and support.

Following debate, the amendment was put to the vote and was lost by 34 votes to 14, with 15 abstentions.

Following a lengthy debate, the substantive motion was put to the vote and was carried by 36 votes to 27.

Voting was as follows:

Councillors voting for the motion (36)

Atkins, Bartholomew, Bartington, Billington, Bulmer, Carter, Clarke, Constance, Corkin, Fatemian, Fenton, Field-Johnson, Fitzgerald O’Connor, Fox-Davies, Gawrysiak, Gray, Griffiths, Handley, Harrod, Heathcoat, Hibbert-Biles, Hudspeth, Ilot, Lindsay-Gale, Mallon, Matelot, Mathew, Patrick, Reeves, Reynolds, Sames, Sibley, Stratford, Thompson, Waine, Walker.

Councillors voting against the motion (27)

Alfridi, Azad, Banfield, Brighouse, Buckley, Cherry, Evans, Fawcett, Hannaby, Harris, Howson, Johnston, Johnson, Lygo, McILveen, Phillips, Pressel, Price, Roberts, Rooke, G Sanders, J Sanders, E Smith, R Smith, Turnbull, Webber and Williams.

It was accordingly:”

RESOLVED: (36 votes to 27)

The Council is RECOMMENDED to:

(b)          have regard to the report of the Director of Finance (at Section 3) in approving recommendations (c) to (f) below;

(c)          (in respect of revenue) approve:

(1)          the council tax and precept calculations for 2018/19 set out in section 4.3 and in particular:

(i)           a precept of £352,041,895;

(ii)          a council tax for band D equivalent properties of £1,426.19;

(2)         a budget for 2018/19 as set out in section 4.4;

(3)         a medium term plan for 2018/19 to 2021/22 as set out in section 4.1 (which incorporates changes to the existing medium term financial plan as set out in section 4.2; and, subject to Cabinet approval on 12 February 2018, as Accountable Body for the Oxfordshire Housing and Growth Deal, includes £4.5m capacity funding (noting a further £0.5m will be received in 2017/18);

(4)         the use of Dedicated Schools Grant (provisional allocation) for 2018/19 as set out in section 4.8; and

(5)         virement arrangements to operate within the approved budget for 2018/19 as set out in section 4.5;

(d)          (in respect of balances and reserves) approve:

(1)         the Chief Finance Officer’s recommended level of balances for 2018/19 as set out in Appendix 1 of section 4.7; and

(2)         the planned level of reserves for 2018/19 to 2021/22 as set out in section 4.7.1;

(e)          (in respect of treasury management) approve:

(1)          the Treasury Management Strategy Statement and Annual Investment Strategy for 2018/19 as set out in section 4.9;

(2)          the continued delegation of 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 Chief Finance Officer 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 4.9;

(5)          the Minimum Revenue Provision Methodology Statement as set out in Appendix B of section 4.9;

(6)         the Specified Investment and Non- Specified Investment Instruments as set out in Appendix C and D of section 4.9; and

(7)         the Treasury Management Policy Statement as set out at Appendix E of section 4.9;

(f)           (in respect of capital) approve:

(1)         the Capital Strategy as set out in Section 4.10; and

(2)          a Capital Programme for 2018/19 to 2027/28 as set out in section 4.10.1 which:

(i)        subject to Cabinet approval on 12 February 2018, as Accountable Body for the Oxfordshire Housing and Growth Deal, includes £150m funding for Infrastructure and £60m for Affordable Housing;

(ii)       includes the Highways Structural Maintenance Programme 2018/19 and 2019/20 in section 4.10.3.