To set out the issues bearing on financial planning for the authority over the next three years and to agree an approach to delivering a medium term sustainable financial position over that period, bearing in mind the risks and unknowns.

And to agree a draft budget for 2017/18 to be put forward for Full Council consideration.

The tabled comments and recommendations of the Overview and Scrutiny Committee were noted by the Mayor.

DECISION

1.    To agree a General Fund Revenue Budget of £338.896m subject to any changes arising from the Final Local Government Finance Settlement for referral to Council.

2.    To agree the Council Tax (Band D) at £966.80 for 2017-18 be referred to Full Council for consideration.

3.    To authorise the Corporate Director, Resources after consultation with the Mayor and Lead Member of Resources to make any changes required to the budget following the final settlement announcement in February.

4.    To approve the capital programme to 2021-22; as detailed in Appendix 9 (b – d) of the report.

5.    To approve and refer to Full Council for consideration and agreement the Capital Strategy, and initiate a comprehensive review of the Council’s approach to the prioritisation and governance of capital expenditure based on the outcomes based budgeting methodology already adopted for the revenue elements of the MTFS.

6.    To note the following:

General Fund Revenue Budget for 2017-18 and Medium Term Financial Strategy 2017-18 to 2019-20

The initial budget proposal and Council Tax for 2017-18 together with the Medium Term Financial Strategy set out in Appendix 1a to the report.

Budget Consultation

The outcome of consultation with business ratepayers, residents and other stakeholders as reported to The Mayor in Cabinet in December 2016 and attached for ease of reference at Appendix 10 to the report.

Funding

The funding available for 2017-18 and the indications and forecasts for future years as set out in Section 3.4 of the report.

Growth and Inflation

The risks identified from potential growth and inflation commitments arising in 2017-18 and future years together with new initiatives identified as Mayoral Priority Growth as set out in Section 3.5 of the report and Appendix 3 to the report.

Savings

New proposed saving items to be delivered in 2017-20 as set out in Section 3.6 and Appendix 4 of the report.

Financial Risks: Reserves and Contingencies

The strategic budget risks and opportunities as set out in Section 3.7 of the report and the assessment of risk as detailed in Appendix 6 to the report.

Reserves and Balances

The proposed approach to the strategic use of reserves as set out in Section 3.8 and the projected movement in Reserves as detailed Appendix 7 to the report.

Schools Funding

The position for schools’ funding including the Dedicated Schools Grant as set out in Section 3.9 of the report.

Housing Revenue Account

The position for the Housing Revenue Account as set out in Section 3.10 and Appendix 8 to the report.

Capital

The Capital Strategy detailed in Appendix 9a and the capital programme to 2021-22; including the proposed revisions to the current programme, as set out in Section 3.11 and detailed in Appendix 9 (b – d) to the report.

To adopt a capital estimate for all new schemes detailed in Appendix 9c to the report.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

(Divisional Director, Finance and Procurement (N. Murton)