Agenda item

The Council gave consideration to the report and appendices (at pages 20 - 50) as delivered and summarised by the Interim Chief Finance Officer (Section 151 Officer) which should be read together with these minutes as a composite document.

The Interim Chief Finance Officer reported that the proposed Budget for 2017/18 was predicated on the requirement incumbent upon Council to make a total of c. £1.4m efficiency savings by 2020 due to the progressive nature of cuts to the Revenue Support Grant (RSG).

The Medium Term Financial Strategy (MTFS) was said to have set a target of £860k in 2017/18, of which £710k of efficiency saving had already been found with the remaining £150k to be borrowed from General Reserves to balance the budget. The Capital Programme was said to be indicative of project-work that the Council could afford to undertaken in 2017/18 and that a worked-up, detailed report for each proposed scheme will be brought their respective committees for approval.

It was emphasised that the proposed Budget was, inter alia, based upon:

(a)       a minimum level of General Fund reserves of 5% of annual net expenditure (throughout the period between 2017/18 to 2020/21);

(b)       the assumption of a 1% pay award and upward inflation of 2.5%;

(c)       the assumption that the Scale(s) of Fees and Charges would be revised upwards (as resolved at the meeting of the Policy, Finance and Development Committee held on 01 November 2017);

(d)       the same levels of business rates (non-domestic rates) being levied and collected, accordingly;

(e)       the adopted Council Tax Support Scheme remaining unchanged (as resolved the extraordinary meeting of the Council held on 17 January 2017); and

(f)        a reduction in the award of New Homes Bonuses (NHB’s) as set out in the Government’s Grant Settlement.

The proposed Budget was said to be a balanced budget capable of being delivered with no significant cuts to frontline services or redundancies anticipated in 2017/18: however, it was advised that, and in conjunction with the work being undertaken by the Change Management Committee in relation to the Four-Year Efficiency Plan, these two heads were not exempt from future reconsideration in 2018/19.

The Chair of the Policy, Finance and Development Committee, Councillor Mrs SB Morris, commended the proposed Budget for 2017/18 to the Council. She noted that in view of the non-attendance of all six (Conservative) Opposition Members, there was no alternative budget put forward by the same upon which a cross-party debate could be properly had.

Councillor Mrs L M Broadley enquired as whether the Capital Programme included provision for a footpath to the Parklands Leisure Centre from Wigston Road, Oadby.

The Interim Chief Finance Officer answered affirmatively. He advised that a composite report regarding car parking provision, highway and access routes was to be brought to a subsequent meeting of the Service Delivery Committee.

Councillor G A Boulter sought assurances from the Interim Chief Finance Officer to ensure that the full amount allocated by the Government for 2017/18 for Disabled Facilities Grants (DFG’s) would be received from Leicestershire County Council.

The Interim Chief Finance Officer offered such assurances.

The Leader of the Council, Councillor J W Boyce, commended the proposed delivery of a balanced budget: however noted that, over the coming years, further challenges and difficult decisions lay ahead requiring service areas needing to be carefully re/assessed to find further efficiency savings including exploring any opportunities to invest in Council services as a means to achieve the same. He welcomed the bringing forward of a Capital Programme (CP) for 2017/18 which, although might not capable of being delivered in its entirety, would seek the decision of Members as to how to implement and to what extent.

The Leader requested that the process in determining the CP allocation be reviewed to reconcile budget-planning with the budget-process.

Councillor Mrs S B Morris moved the recommendations en bloc as set out at paragraphs 2.1 to 2.9 of the report (at pages 20 - 21).

Councillor D A Gamble seconded the recommendations.

RESOLVED THAT:

(i)        The General Fund net revenue budget estimates for 2017/18 totalling £6,601,700 be approved (Appendix 1);

(ii)       The Capital Programme for 2017/18 amounting to £3,691,000 be approved (Appendix 2);

(iii)      The Housing Revenue Account draft estimates for 2017/18 be approved (Appendix 3);

(iv)      The Chief Financial Officer be authorised to arrange the financing of the capital programme as necessary;

(v)       A decrease of 1.00% in housing rents (Appendix 3, paragraph 4.2) and increases in other charges (Appendix 3, paragraph 2) be approved;

(vi)      The list of reserves and balances ( Appendix 4) be approved;

(vii)    As set out in the Chief Financial Officer’s Statement (Appendix 5), the following policy be approved:

(a)    The holding an absolute minimum level of General Fund reserves of 5% of annual net expenditure throughout the period between 2017/18 to 2020/21;

(b)   The holding an absolute minimum level of General Fund reserves of 5% of annual net Holding an optimal level of reserves of between 5% and 10% of annual net expenditure over the period 2017/18 to 2020/21 to cover the absolute minimum level of reserves, in-year risks, cash flow needs and unforeseen circumstances;

(c)    The holding a maximum recommended level of reserves of 10% of annual net expenditure for the period 2017/18 to 2020/21 to provide additional resilience to implement the Medium Term Financial Plan;

(d)   The adoption of a Reserves Strategy to maintain the recommended optimal level of reserves within the relevant period (2017/18 to 2020/21); and

(e)    In relation to the Housing Revenue Account (HRA), maintaining reserves at a minimum of £300,000.

(viii)   The risks and sensitivities surrounding the budget (Appendix 6) be noted;

(ix)      Delegated authority be granted to the Chief Financial Officer to amend the estimates to account for any changes to the final Formula Funding amount over the provisional figure by adjusting the contribution to/from the Budget Equilibrium Reserve as appropriate.

In accordance with Regulation 2 of the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the names of the persons who casted a vote for the motion or against the motion or who abstained from voting were recorded as follows:-

Votes For                   L A Bentley

(17)                              G A Boutler

                                    J W Boyce

                                    Mrs L M Broadley

                                    F S Broadley

                                    D M Carter

                                    Ms K M Chalk

                                    M H Charlesworth

                                    M L Darr

                                    Mrs L Eaton

                                    R F Eaton

                                    D A Gamble

                                    Mrs S Z Haq

                                    J Kaufman

                                    K J Loydall

                                    R E R Morris

                                    Mrs S B Morris           

Votes Against            None

(0)                               

Abstentions               G S Atwal

(1)