Agenda item

To consider a report

The Head of Finance and Treasurer introduced his report on the proposed revenue budget and capital programme seeking Members’ approval to consulting on a draft Revenue Budget, Capital Programme and Council Tax for 2019/20.

He reported that he had received notification from the Ministry of Housing, Communities and Local Government that an error in the calculations of Revenue Support Grant had been identified, and that as a result, the Authority would receive £190,000 less in 2019/20. The Ministry had confirmed that it would not seek to recover the approximate £595,500 that had been overpaid to the Authority in the period 2016/17-2018/19.

In response to a question, the Head of Finance and Treasurer confirmed that he had spoken to the Deputy Director of Local Government Finance at the Ministry suggesting that the four-year settlement agreement should be honoured. However, he had been advised that the Ministry had a duty to rectify errors in calculation when these had been identified.

The Head of Finance and Treasurer reported that he would revisit the calculations that had been provided for previous years to identify the error.

The resultant impact of this on the budget was that the Revenue Support Contributions (line 51) had been reduced and the budget requirement to be consulted on was now £29.672 million, with a proposed Council Tax increase of 2.99% and a Capital Programme of £1.736 million.

A Council Tax increase of 2.99% was equivalent to a £2.86 annual increase or 5 pence per week increase for a Band D property.

Members were advised that the tables reflecting the level of business rate income and the Council taxbase had been updated.

A revised Medium Term Revenue Plan was tabled and the Head of Finance and Treasurer highlighted the decrease in line 51 and the increase to the Collection Fund surpluses (line 56) that had been made, based on previous years.

Members commented on lines that reflected revenue contributions to capital, which illustrated one-off funding of capital projects such as the mobilisation system.

In relation to Appendix 2, which set out the assumptions and uncertainties underpinning the budget setting process, Members’ attention was drawn to an estimated liability of £1.2 million for employer contributions to the Firefighters’ Pension Scheme. There had been additional funding awarded from Government for both Police and Fire and Rescue Services to help with these costs, however, it was likely that this was for one year only and would form part of the Comprehensive Spending Review.

Members were referred to a note on the budget consultation which was due to go out with the proposals and were asked to provide feedback to the Head of Finance and Treasurer.

An analysis of the consultation responses received would be submitted to the next meeting of the Authority.

RESOLVED:

That the following be approved for public consultation:

1.         A draft revenue budget requirement of £29.672 million, as per Appendix 1 of the report, with a council tax increase of 2.99%; and

2.         A draft Capital Programme of £1.736 million as per Appendix 3 of the report.