The Committee is asked to consider the Mayor’s initial budget proposals to be agreed at Cabinet on Wednesday, 9th January, 2019

The Committee was reminded that in February 2018 the Council had agreed a 3 year budget and Medium Term Financial Strategy (MTFS) for the period 2018-2021; including savings of £10.78m that would need to be delivered to if LBTH was to achieve a balanced budget over that period.

Accordingly, as part of the Council’s annual budget cycle, the Committee was informed that the report sets out to provide a review and to update the assumptions made in that report for the years 2019-2021 and incorporates a new year, 2021-22, to maintain the Council’s three year MTFS. It was noted that the assumptions as set out in last year’s MTFS for 2019-20 have been specifically reviewed so as to allow Members to agree a balanced budget and Council tax requirement for that year.

The Committee was advised that 2019-20 is the final year of the government’s four year guaranteed funding settlement, the introduction of a London-wide business rates retention pilot scheme and the Councils decision to participate will have an impact on those resources the Council receives from Revenue Support Grant and Business Rates and this has therefore been considered in this report. In additional, the Committee did note that demographic and inflationary budget pressures together with mayoral priority growth proposals have also been identified and the action that is needed to meet these additional commitments over the existing MTFS assumptions have been outlined within this report.

Finally, the Committee was advised that the impact on the Council’s MTFS of the Chancellors Autumn Statement that was announced on the 29^th October, 2018 and the 2019-20 provisional local government finance settlement which followed on the 13th December 2019 had also been considered within the report.  The questions and comments from Members on the report may be summarised as follows:

Committee focused on a number of areas including the following:

• That Cabinet, 9th January 2019 had formally proposes the draft Budget. Then on 10th January 2019 formal notification had been sent to the Chair of Overview and Scrutiny Committee confirming that the Mayor’s initial budget proposals had been circulated to all Members, and that any response of the Overview and Scrutiny Committee to these must be submitted to the Mayor by noon on Friday 26th January 2019. Accordingly, tonight’s meeting was specifically to discuss the Mayor’s proposals and then formally consider scrutiny comments to be reported to the Mayor by the deadline above;
• That on 30th January 2019 Cabinet will meet to consider all the feedback (Including from Scrutiny; the Public and those paying NNDR) and then to formally propose the budget to Council.  Whilst, on Monday 5th February 2018 the Committee will if needed have the opportunity to meet to specifically to discuss any material changes to the Mayor’s proposals announced on 30th January;
• That the report outlines what is being done to address the various budgetary pressures facing LBTH.

GENERAL OVERVIEW

• That the Budget had been developed through a series of workshops between officers and members to ensure delivering services  ...  view the full minutes text for item 3

DECISION

1.    To note the report.

RESOLVED

1.    To note the report.