Issue - meetings

Report No:  CAB/FH/16/005

Portfolio Holder: Stephen Edwards            Lead Officer: Jo Howlett

RECOMMENDED TO COUNCIL (24 February 2016):

That:-

1.       The revenue and capital budget for 2016/2017 attached at Attachment A and as detailed in Attachment D, Appendix 1-5 of Report No Cab/FH/16/005, be approved.

2.       Having taken into account the conclusions of the Head of Resources and Performance’s report on the adequacy of reserves and the robustness of budget estimates (Attachment C) and the Medium Term Financial Strategy (MTFS) (Attachment D), particularly the Scenario Planning and Sensitivity Analysis (Attachment D and Appendix 5) and all other information contained in this report, Cabinet recommends a 0% increase in Council Tax for 2016/2017 (the level of Band D Council Tax for 2016/2017 be set at £137.43).

3.       The Head of Resources and Performance, in consultation with the Portfolio Holder for Resources and Performance, be authorised to transfer any surplus from the 2015/2016 revenue budget to the Invest to Save Reserve as detailed in paragraph 1.9.4, and to vire funds between existing Earmarked Reserves (as set out at Attachment D, Appendix 3) as deemed appropriate throughout the year.

4.      That 100% disregard of War Pension’s, War Widower’s Pensions and Armed Forces Compensation Payments or any other successor scheme, be approved in the calculation of Housing Benefit, as set out in paragraphs 1.4.3 to 1.4.5 below.

5.      The revised Minimum Revenue Provision policy, as set out in section 1.8 and Attachment D Appendix 4, is adopted.

6.       Where the Council has usable capital receipts that are not needed for other purposes, delegated authority be given for the Section151 Officer to apply, where prudent to do so, some or all of it to meet capital expenditure incurred in the current year or previous years under paragraph 23 of Section 21(1B) of the Local Government Act 2003, to reduce or eliminate any MRP that might need to be set aside. Subject to the year-end outturn, unallocated usable capital receipts are used to meet the full CFR value during 2015/2016, thus eliminating the need for an MRP charge in 2016/2017 and until such time that the CFR calculation requires one.

(Report No CAB/FH/16/005)

Councillor Stephen Edwards, Portfolio Holder for Resources and Performance, presented this report which set out details of the Council’s proposed revenue and capital budgets for 2016/2017 and the Cabinet was required to consider the 2016/2017 budget for the authority and recommend to Council, the level of Council Tax required to help fund this budget.

In the provisional Local Government Finance Settlement for 2016/2017, it was proposed to offer a guaranteed four year budget settlement to cover the period up to 2019/2020, to those councils who could demonstrate ongoing efficiency savings for 2016 to 2020.  The Council had seen a 62% cumulative cut in Revenue Support Grant (RSG) over the three years from 2013/2014 to 2016/2017.  Further cuts to the RSG element (including Council Tax Freeze Grant) in subsequent years had been outlined in the December settlement as part of the provisional four year settlement and it was expected that there would be minimal RSG support available to the District by 2019/2020. 

In previous years, the Government had awarded a Council Tax Freeze Grant to those councils that agreed to freeze their council tax levels, however, this incentive had not been included in the settlement for 2016/2017 onwards and there was an assumption in the Local Government Finance Settlement, that councils would raise their council tax levels in line with the referendum limits (2% or £5 for councils in the lower council tax quartile).

The Council continued to face considerable financial challenges as a result of uncertainty in the wider economic and constraints on public sector spending.  In this context and like many other councils, difficult decisions had to be made.  However, the Council had an excellent track record of achieving substantial year-on-year budget savings and generating new income.

The Cabinet acknowledged  the budget gap faced at the beginning of the year of £1.06 million for 2016/2017, which was in addition to the savings delivered locally by the District over the years and in excess of the £4 million annual shared service savings already delivered across West Suffolk with St Edmundsbury Borough Council. 

Councillor Edwards thanked all Members, Officers and specifically the Performance and Audit Scrutiny Committee, for their work in scrutinising the budget process and being in a position to be able to deliver a balanced budget for 2016/2017.  The figures contained within the report assumed a 0% increase in Council Tax for 2016/2017.  The Council Tax precept for Forest Heath District Council in 2016/2017 would, therefore, be £137.43 for an average Band D property.  Should the Cabinet and Council decide to set a 0% increase on Council Tax, the Council would have frozen Council Tax for the last six years.

With the vote being unanimous, it was

RECOMMENDED TO COUNCIL: (24 February 2016)

That:-

1.       The revenue and capital budget for 2016/2017 attached at Attachment A and as detailed in Attachment D, Appendix 1 to 5 of Report No CAB/FH/16/005, be approved.

2.       Having taken into account the conclusions of the Head of Resources and Performance’s  ...  view the full minutes text for item 160