Agenda item

To consider a report

The Temporary Assistant Chief Officer submitted his report on the proposed revenue budget and capital programme. In addition to the consideration of the draft budget at the Authority’s last meeting, two Members Budget Workshops had been held. The draft revenue budget requirement had been updated as the three unitary authorities had recently submitted their business rate returns and some of the figures had changed. A revised appendix setting out the final budget was tabled for the Authority’s approval.

A Council Tax increase of 2.99%, below the cap level of 3%, was being proposed. This equated to an increase to £98.45 per Band D property.

In addition to the final budget, the Temporary Assistant Chief Officer submitted the medium term savings and efficiencies, the Capital Programme, the Medium Term Financial Strategy, the Reserves Strategy and the Treasurer’s Statement on the adequacy of reserves and robustness of estimates.

The final settlement had been issued and there had been no changes to the figures previously indicated to the Authority. The continuing reduction in Revenue Support Grant, from £2.6 million to £2.283 million, was noted.

The Temporary Assistant Chief Officer advised that 2019/20 was the last year of the four year funding settlement from Government and highlighted the uncertainty in the 2020/21 budget arising from the formula funding review, changes to business rate retention and the spending review.

In response to a question, the Temporary Assistant Chief Officer confirmed that he would recirculate the page setting out the precepts as these had changed as a result of the revised budget, as well as a revised Medium Term Financial Strategy.

The Temporary Assistant Chief Officer reported that the transformational earmarked reserve was being used to reduce the revenue budget requirement.

Changes to the original budget included the business rate baseline (line 52) and the separate reporting of the transformational reserve for investment into the Control Mobilisation Project (line 76). The annual use of transformational reserve for strategic projects and improvements (line 77) was set at £250,000 from 2019/20. After the next four year period, this would leave the earmarked reserve at £1.946 million. This was in line with a general principle of reducing the level of reserves.

Consultation on the budget had been undertaken with approximately 1120 responses received. 84% of respondents supported the proposed 2.99% Council Tax increase. 73% had also supported the Service going to referendum for a level of Council Tax exceeding the current capped level of 3%.

In response to a request for a breakdown of consultation responses, the Temporary Assistant Chief Officer confirmed that he would circulate this information to Members of the Authority for information.

In relation to the assumptions made on pay, a generous 9% increase over the medium term period had been budgeted for. Members were assured that these pressures were reviewed every year. Detailed inflation figures for gas, water, electricity and derv had also been included in the budget (line 33).

The prudent use of reserves to support the budget setting process was recognised. 

The recommendations relating to the revenue budget requirement of £29.832 million, with a corresponding precept of £20.971 million and a 2.99% Council Tax increase were put to the meeting and the votes recorded thereon were as follows:

RESOLVED:

1.         That the report be considered and it be determined for 2019/20 that:

a.         A Revenue Budget requirement is set at £29.832 million, met as indicated in paragraph 3.8 of this report.

b.         In meeting this budget requirement, the Authority’s Precept be set at £20.971 million and that as a consequence, a council tax increase of 2.99% up to £98.45 per Band D equivalent property, calculated as shown in Paragraph 3.8 of this report.

c.         In order to meet the Precept requirement, the Temporary ACO/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 2019/20 savings and efficiencies detailed at Appendix 2 be approved.

3.         That the 2018/19 year-end underspend be 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 and the Reserves Strategy at Appendix 5 to the report 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 the reserves for which the budget provides, attached at Appendix 6 to the report, be noted.

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