Agenda item - DRAFT BUDGET 2018/2019

REPORT OF THE STRATEGIC DIRECTOR OF FINANCE, POLICY AND GOVERNANCE

To consider the Draft Budget 2018/2019.

RECOMMENDED TO CABINET: That the following comments of the Finance, Audit and Risk Committee be taken into consideration by the Cabinet during its deliberations on the Draft Budget for 2018/2019:

· E9 – Cessation of Area Committee Grants – not totally supported, as the savings figure is shown for 2018/19 onwards, and yet no mechanism is in place to supersede the Area Committee Grants process;

· E11 – Cease the provision of Christmas trees in Town Centres – further discussion should take place with Town Centre Managers with a view to the Town Centre Partnerships/BID organisations taking over this provision;

· ECP12/NCP7/ECP13 – various items relating to or linked to the Lairage Car Park in Hitchin – in view of the relatively low level of use of this Car Park, consideration be given to the completion of the Parking Strategy before (and if) these items were implemented; and

· General – the appendices should be revised at final draft Budget stage to group together the items under common or related themes, rather than being ordered by value.

REASON FOR DECISION: To provide an opportunity for the Committee to comment as appropriate on the Draft Budget for 2018/19.

The Head of Finance, Performance and Asset Management presented a report in respect of the Draft Budget for 2018/19, and advised that the report was for consideration prior to presentation to Cabinet on 19 December 2017.

The Head of Finance, Performance and Asset Management advised that the provisional Local Government Finance Settlement had yet to be announced, but was expected during the week commencing 18 December 2017. The Settlement would be definitely containing an announcement on Business Rates Pilot schemes. He felt that there would also be an announcement on New Homes Bonus.

The Head of Finance, Performance and Asset Management referred to the list of specific Government Grants set out in Table 2 of the report. If there were any changes to those Grants then any shortfall would need to be financed through the General Fund.

In respect of Council Tax and Business rates set out in Section 8.2 of the report, the Head of Finance, Performance and Asset Management reiterated that the estimates in that Section were underpinned by a number of assumptions.

The Head of Finance, Performance and Asset Management advised that the Council was expected to still be able to raise Council Tax by £5 for 2018/19 and that the Cabinet would be requested to recommend an appropriate increase to Council, in line with the Medium Term Financial Strategy. It was also expected that the Council Tax Base would increase by 1% per year.

The Head of Finance, Performance and Asset Management drew attention to the Council’s specific reserves set out in Table 5 of the report. He also referred to Paragraph 8.3.3 of the report, which detailed the provisions required to be set aside by the Council for future expected liabilities.

The Head of Finance, Performance and Asset Management commented that the Council’s General fund balance was required to be at a minimum level to allow for risks, both of a known and unknown nature. Table 6 set out the headline figures for the Council’s known risks.

The Head of Finance, Performance and Asset Management refereed to the savings and investment proposals set out in Appendices B and C to the report. Paragraph 8.4.3 contained a number of updates since the Member Budget Workshops held in November 2017.

As a result of the Waste Contract savings, the Head of Finance, Performance and Asset Management explained that the Council was in a better financial position than originally anticipated. There was a reduced need to deliver savings over the next two years, but towards the end of the current four year period there would still be the need to find at least £500,000 of further savings based on current forecasts. These forecasts could be negatively impacted by changes in funding over that period.

The Head of Finance, Performance and Asset Management concluded by commenting that it was proposed that the Council’s Efficiency Sustainability Plan should not be updated at the present time for the reasons set out in Paragraph 8.6.1 of the report.

The Head of Finance, Performance and Asset Management answered a number of Members’ questions regarding the covering report.

The Chairman took the Committee through the efficiency and investment proposals set out in Appendices B and C of the report, and a number of comments were made.