Agenda item

To consider a report

Mr G Chambers, the Head of Finance and Treasurer, submitted his report on the Revenue Budget, Capital Programme and Council Tax for 2018/19. The Authority was being asked to approve a draft revenue budget requirement of £29.437 million with a Council Tax increase of 2.99%.

The Head of Finance and Treasurer reported that there had been a slight variation to the figures previously discussed at the Members’ Budget Workshop of £21,000 per annum. There had also been an increase to Line 54 of the Medium Term Revenue Plan to £195,000. With these changes, the forecast net balance of the Transformational Earmarked Reserve in 2021/22 had increased from £1.019 million to approximately £1.5 million which could result in the reserve being used to balance the budget in 2022/23, subject to the outcome of national pay bargaining negotiations.

In relation to the assumptions underpinning the development of the budget, it was noted that the firefighter pay award could be a significant budget pressure. A 4% provision had been made for the firefighters pay award; however, the Scottish Fire and Rescue Services had recently been awarded a 20% increase over a four year period. This was subject to Scottish firefighters accepting the broadening of the traditional role of a firefighter. Pay negotiations in England remained ongoing and could present a much larger cost than that currently forecast.

The Service currently held £2.6 million in general reserves, approximately 9% of its budget, which was the average for Combined Fire Authorities.

The original budget proposals, prior to the change in the Council Tax Referendum cap, had been subject to public consultation, with 78% of respondents supporting a Council Tax increase of between £2.50- £5 per Band D property. The current proposals resulted in a £2.78 increase per annum per Band D property.

The Chief Fire Officer highlighted the proactive use of the transformational earmarked reserve to provide an enhanced service to the public in the context of sustained funding reductions, as illustrated in a graph detailing the Revenue Support Grant reductions set out in the Medium Term Financial Strategy. Officers deliberately generated an underspend to ensure that funds were rolled forwards to support the budget setting process in future years. It was important that this information was captured and shared with others.

The recommendations relating to the revenue budget requirement of £29.437 million, with a corresponding precept of £19.972 million and a 2.99% Council Tax increase were put to the meeting and the votes recorded thereon were as follows:

RESOLVED:

1.         That it be determined for 2018/19 that:

(a)       A Revenue Budget requirement is set at £29.437m, met as indicated in paragraph 3.8 of the report.

(b)       In meeting this budget requirement, the Authority’s Precept be set at £19.972m and that as a consequences, a Council Tax increase of 2.99% up to £95.59 per Band D equivalent property, calculated as shown in Paragraph 3.8 of this report.

(c)        In order to meet the Precept requirement, the Head of Finance/Treasurer be authorised to issue Precepts in the necessary form to each of the Unitary Councils and for the amounts indicated in Paragraph 3.11 of this report.

2.         That the Medium Term Revenue Plan attached at Appendix 1 to the report and the 2018/19 savings and efficiencies detailed at Appendix 2 to the report be approved.

3.         That the 2017/18 in-year underspend is allocated to the Transformation Reserve.

4.         That the Medium Term Capital Programme attached at Appendix 3 to the report be approved.

5.         That the Medium Term Financial Strategy attached at Appendix 4 to the report, which also contains the reserves strategy, be approved.

6.         That in considering the above recommendations, the Treasurer’s statement on the robustness of estimates included in the budget and the adequacy of reserves for which the budget provides, attached at Appendix 5 to this report, be noted.

7.         That any budget amendments, following receipt of the final settlement figures, be delegated to the Treasurer and Chief Fire Officer.