Agenda item

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Officer (Resources)    (Supplementary Report to follow)

(Cabinet Member with Special Responsibility Councillor Whitehead)

Cabinet received a report from the Chief Officer (Resources) to inform Cabinet of the latest General Fund budget and council tax position so it can make recommendations back to Council in order to complete the budget setting process.

The options, options analysis, including risk assessment and officer preferred option, were set out in the report as follows:

Cabinet is now requested to finalise its preferred revenue budget and capital programme proposals for referral on to Council, using the latest information as set out in this report.

Revenue Budget

Cabinet may adjust its revenue budget proposals, as long as the overall budget for 2018/19 balances and fits with the proposed council tax level.  The Chief Officer (Resources), as s151 Officer, continues to advise that wherever possible, emphasis should be on reducing future years’ net spending.

Capital Programme

Cabinet may adjust its capital investment and financing proposals to reflect spending commitments and priorities but overall its proposals for 2017/18 and 2018/19 must balance.  Whilst there is no legal requirement to have a programme balanced over the full 5-year period, it is considered good practice to do so – or at least have clear plans in place to manage the financing position over that time. 

In deciding its final proposals, Cabinet is asked also to take into account the relevant basic principles of the Prudential Code (as being updated), which include:

-                 that the capital investment plans of local authorities are affordable, prudent and sustainable, and

-                 that local strategic planning, asset management planning and proper options appraisal are supported.

            Other Budget Framework Matters (Reserves and Provisions / MTFS)

Given known commitments, risks and approved council tax targets there is limited flexibility in financial terms, but depending on priorities Cabinet may consider putting forward alternatives for various reserves, or different approaches for addressing the medium term budget deficit through the MTFS.

Proposals to be put forward by Cabinet should fit with any external constraints and the budgetary framework already approved.  The recommendations as set out meet these requirements; the detailed supporting budget proposals are then a matter for Members.

Councillor Whitehead proposed, seconded by Councillor Clifford:-

“That the recommendations, as set out in the report, be approved.”

Councillors then voted:-

Resolved unanimously:

(1)       That Cabinet determines its response to the feedback from Council (as set out in section 8 of the report) as part of finalising its budget proposals prior to the Budget Council agenda being published.

(2)       That Cabinet endorses the review of Provisions, Reserves and Balances undertaken by the s151 Officer, and notes her advice regarding the minimum level of Balances being maintained at £1.5M, subject to annual review.

(3)       That subject to any changes arising from the above, and any further budget amendments arising in or agreed by Cabinet after this meeting, Cabinet be recommended to approve for referral on to Budget Council:

-        the 2018/19 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (current position at Appendix A to the report);

-        its supporting budget proposals (current summary of proposals at Appendix B to the report);

-        the resulting position on provisions and reserves (current position at Appendix D to the report); and

-        the resulting Capital Programme (current position at Appendix E to the report).

(4)       That the Finance Portfolio Holder be given delegated authority to update the Medium Term Financial Strategy accordingly, for referral on to Budget Council.

Officer responsible for effecting the decision:

Chief Officer (Resources)

Reasons for making the decision:

The decision enables Cabinet to make recommendations back to Council in order to complete the budget setting process for 2018/19.