This report sets out for consideration those issues that have a bearing on the Council’s financial planning for the 2018-19 Budget and the 2018 – 2021 Medium Term Financial Strategy (MTFS). This will include the relevant risks, uncertainties and the options for managing those issues. The Full Council is required to take final decisions on the Council’s budget including the setting of the Council tax although there are a number of individual decisions that are taken by the Cabinet as part of this overarching report or other separate detailed reports. These include agreement of the Councils approach to fees and charges, the agreement of its Local Council Tax Reduction Scheme and agreement to participate in the London-wide Business Rates Retention Scheme.

The Supplemental Pack circulated to Members in advance of the meeting was noted.

DECISION

1.            To propose a draft General Fund Revenue Funding Requirement of £344.299m subject to any changes arising from the Final Local Government Finance Settlement.

2.            To propose a Band D Council Tax of £986.14 for 2018-19 to be referred to Full Council for consideration.

3.            To agree to increase the Council Tax empty homes premium from 50% to 100%.

4.            To confirm the Council’s decision to be included in the London-wide business rates retention pilot from the 1st April 2018.

5.            To note that, under section 23 of the Welfare Reform and Work Act 2016 the Authority must implement a rent reduction of 1% for four years starting in 2016-17, and consequently to agree an average weekly rent reduction of 1% to take effect from the first rent week of April 2018. This equates to an average rent reduction of £1.14 per week for 2018-19.

6.            To agree that the average weekly tenanted service charge will increase by 4% from the first rent week in April 2018.

7.            To note the refreshed priorities and outcomes (Paragraph 3.2.4) for the final year of the three year Strategic Plan agreed by Cabinet in April 2016.

8.            To note the following:

General Fund Revenue Budget for 2018-19 and Medium Term Financial Strategy 2018-19 to 2020-21

The initial budget proposal and Council Tax for 2018-19 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 will be reported to Cabinet on the 30th January 2018.

Funding

The funding available for 2018-19 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 2018-19 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 2018-19 and 2020-21 as set out in Section 3.6 of the report and Appendix 4 to 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 of the report 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 proposals for Rent and Tenanted Service Charge Setting – 2018-19 and Equalities impact assessment set out in Section 3.10 of the report and Appendix 8 to the report.

Action by:

CORPORATE DIRECTOR, RESOURCES (Z. COOKE)

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