Agenda item

Budget & Policy Framework Update 2019/2023

(Cabinet Member with Special Responsibility Councillor Whitehead)


Report of the Interim Financial Services Manager -  (Report to follow)


(Cabinet Member with Special Responsibility Councillor Whitehead)


Cabinet received a report from the Interim Head of Financial Services, which set out the latest position in respect of the Budget & Policy Framework including Cabinet’s proposed revenue budget for 2019/20 and Capital Programme for 2019/20 to 2022/23.  The report also set out the Treasury Management Framework for Cabinet adoption and provided an update on the revision of the Medium Term Financial Strategy.


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


Revenue Budget

  Cabinet may adjust its revenue budget proposals, as long as the overall budget for 2019/20 balances and fits with the proposed council tax level.

Capital Programme

Cabinet may adjust its capital investment and financing proposals to reflect spending commitments and priorities but in deciding, its final proposals should have regard to the prudential code requirements that all capital expenditure should be prudent, affordable and sustainable.

Treasury Management Framework


Cabinetmayputforwardalternativeproposalsoramendmentstotheproposed StrategyinAppendix G to the report,butthesewouldhavetobeconsideredinlightoflegislative, professionalandeconomicfactors,andimportantly,anyalternativeviewsregarding theCouncil’sriskappetite.Assuch,nofurtheroptionsanalysisisavailableatthis time.


Furthermore,theStrategymustfitwithotheraspectsofCabinetsbudgetproposals, suchasinvestmentinterestestimatesandunderlyingprudentialborrowing assumptions,feedinginto Prudential andTreasuryManagementIndicators. There are no options available regarding other components of the overall framework, as covered in Appendices E and F to the report.


Officer preferred option and justification


Revenue Budget, Capital Programme and Reserves Position

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.

Treasury Management Strategy

Toapprovetheframeworkasattached to the report,allowingforanyamendmentsbeingmade underdelegatedauthoritypriortoreferraltoCouncil.  ThisisbasedontheCouncil continuingtohave a comparatively low riskappetiteregardingthesecurityandliquidityof investmentsparticularly,butrecognisingthat some flexibilityshouldhelpimprove returns,whilststilleffectivelymitigatingrisk.Itisstressed that intermsoftreasuryactivity, thereisnoriskfreeapproach.Itisfelt, however, thatthemeasuressetoutabove provide a fit for purposeframeworkwithin which to work, pending any update during the course of next year.


If Cabinet or Budget Council changes its Capital Programme from that which is proposed in this report then this would require a change in the prudential indicators, which are part of the Treasury Management Strategy. Delegation to the Finance Portfolio Holder is therefore requested in order to ensure that Cabinet’s final capital programme proposals are reflected in the Treasury Management Strategy.


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 recommend the following for approval to Budget Council:

·         The 2019/20 General Fund Net Revenue Budget and resulting Council Tax Requirement excluding parish precepts (Appendix A to the report) and supporting budget proposals (Appendix B to the report).

·         The S151 Officer’s statement on the adequacy of reserves and advice that the minimum level of balances be increased to £2m, subject to annual review.

·         The resulting position on provisions and reserves (Appendix C to the report)

·         The updated five year Capital Programme (Appendix D to the report) covering financial years 2018/19 to 2022/23.

(2)  ThattheFinancePortfolioHolderbegivendelegatedauthorityto agree the TreasuryManagementFramework, asupdatedforCabinetsfinalbudget proposals,forreferralon to Council.


(3)  ThattheFinancePortfolioHolderbegivendelegatedauthorityto agree the revision of the Medium Term Financial Strategy, asupdatedforCabinetsfinalbudget proposals,forreferralon to Council.


Officer responsible for effecting the decision:


Interim Head of Financial Services


Reasons for making the decision:


The decision enables Cabinet to make recommendations back to Full Council in order to complete the budget setting process for 2019/20.


Supporting documents: