Agenda item

(Cabinet Member with Special Responsibility Councillor Whitehead)

Report of Chief Officer (Resources) – Report to follow

(Cabinet Member with Special Responsibility Councillor Whitehead

Cabinet received a report from the Chief Officer (Resources) to provide information on the latest budget position for current and future years, to inform Cabinet’s budget and policy framework proposals and to allow it to make final recommendations to Council regarding council tax levels for 2018/19.

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

  Options are dependent very much on Members’ views on spending priorities balanced against council tax levels.  As such, a full options analysis could only be undertaken once any alternative proposals are known and it should be noted that Officers may require more time to do this.  Outline options are highlighted below, however.

–                       Regarding council tax, the basic options are set out at section 6 of the report.  Other alternative options can be modelled at Cabinet’s request.

-                       With regard to including savings and growth options to produce a budget in line with preferred council tax levels, any proposals put forward by Cabinet should be considered affordable, alongside the development of priorities.  Emphasis should be very much on the medium to longer-term position.

Under the Constitution, Cabinet is required to put forward budget proposals for Council’s consideration, in time for them to be referred back as appropriate.  This is why recommendations are required to feed into the Council meeting in January, prior to the actual Budget Council in March.

Generally Officer preferred options are reflected in the recommendations, with the exception of council tax.

In view of the level of savings still needed in future years, the ongoing impact that council tax decisions have, the Council’s current financial strategy, its ambition for the district and the fact that the Council is not yet clear about how and when it will achieve a financially sustainable budget, the Officer preferred option for council tax is to increase year on year increases up to the referendum thresholds (i.e. 2.99% for next year), subject to confirmation of those limits.  Ultimately, however, the setting of council tax is a matter for Members.

The Council’s financial challenges continue and in order to protect its future sustainability, as well as balancing next year’s budget, the Council must put in place transformational plans and building blocks to address its forecast medium to longer term deficit, building in flexibility to respond to any major changes in its outlook – there are still some fundamental uncertainties around this, linked to the timing and outcome of Government’s planned finance reforms.

Councillor Whitehead proposed, seconded by Councillor Clifford:-

“That recommendations 1, 4, as set out in the report, be approved with recommendation (3) revised to ‘that Cabinet agrees its’ initial budget proposals for the period from 2018/19 onwards for publication prior to the Budget & Performance Panel meeting on Tuesday 23^rdJanuary 2018.”

Councillors then voted and agreed unanimously to the above recommendations.

Councillor Clifford, having disclosed that Section 106 of the Local Government Finance Act 1992 applied to him, left the meeting at this point and did not vote on recommendation (2).

Councillor Whitehead proposed, seconded by Councillor Warriner:

“That Council be recommended to approve a City Council tax increase of 2.99% for 2018/19, together with a year on year target of 2.99% for future years, subject to Government confirming local referendum thresholds.”

Councillors then voted and agreed unanimously to recommendation (2).

Councillor Clifford returned to the meeting.

Resolved:

(Councillor Clifford did not vote on recommendation (2).

(1)             That the 2017/18 Revised Budget be referred on to Council for approval, with the net overspending of £222K being met from Balances.

(2)             That Council be recommended to approve a City Council tax increase of 2.99% for 2018/19, together with a year on year target of 2.99% for future years, subject to Government confirming local referendum thresholds.

(3)             That Cabinet agrees its’ initial budget proposals for the period from 2018/19 onwards for publication prior to the Budget & Performance Panel meeting on Tuesday 23^rdJanuary 2018.

(4)             That the resulting budget position for 2018/19 onwards, together with Cabinet’s detailed proposals, be referred on to Council for initial consideration as well as being presented for scrutiny by Budget and Performance Panel, in order that any feedback can be provided to Cabinet at its February meeting.

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.