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Home > Council & democracy > Council meetings > Agenda item - The Council's 2018-19 Budget Report and Medium Term Financial Strategy 2018-21

Agenda item

The Council's 2018-19 Budget Report and Medium Term Financial Strategy 2018-21

Decision:

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)

Minutes:

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

Councillor David Edgar, Cabinet Member for Resources, introduced the report proposing a draft Budget for consultation. He explained that in February 2017 the Council had agreed a three year budget plan. This report therefore provided an update to that previous report as well as adding on an additional year 2020-21 to maintain the three year Medium Term Financial Strategy.

He took Members through the report including highlighting a number of points including the funding pressures the Council was under from government cuts, the introduction of a London-wide business rates retention pilot scheme and the impact of demographic and inflationary changes. The budget was also specifically prepared to focus on the Council’s identified priority areas.

The report also set out specific growth plans such as extending free school meals, more money for tackling anti-social behaviour and efforts to deal with air quality. Savings identified included on back-office functions, introducing new LED streetlights and better use of Council assets.

Cabinet discussed the report and noted a number of issues including:

· The investment in children’s services for the most vulnerable especially around children’s social care.

· The funding for supporting residents to find work, such as training more childcare staff and launching the Young Workpath service.

· The commitment to support private renters with increased enforcement work and the private renters’ charter.

· A new air quality assistant to help drive the air quality action plan forward.

· Pilot schemes for neighbourhood management teams to tackle anti-social behaviour.

· The growth bid for adult social care due to the predicted population growth increasing demand for those services, especially amongst the elderly.

· Work to recruit environmental health staff with a particular focus on encouraging student placements.

· The funding for youth services being the largest per young person in the country.

The Mayor welcomed the report. He noted the impact the required budget cuts would have on certain services but considered the proposals were judiciously prepared and had an important focus on key areas. He then took Cabinet through each of the recommendations, noting that, whilst the main budget proposals were to be put out for consultation, there were a number of linked items that were for decision at this meeting. He agreed the recommendations as set out.

RESOLVED