Agenda item

Report of the Interim Director of Resources

Presented by the Corporate Portfolio Holder

The Corporate Portfolio Holder presented the report to Members. He reminded Cabinet that they had approved draft budget proposals on the 13 December 2016 for consultation and informed Members that additional work on the base budget had been completed and the Government had also announced the provisional grant funding for 2017/18.

He highlighted to Members that the New Homes Bonus Payments were set at £2.84m as part of the settlement. It was £340k higher than assumed in the MTFS and whilst this was more than expected for 2017/18, the Council would receive some £445K less over the next 3 years, mainly due to the introduction of the deadweight factor, where payments would only be made on growth above 0.4% (approximately 140 homes) and Appendix 1 on page 17 of the report summarised the Council’ General Fund position and shows a surplus budget position of £902k.

He stated that for 2017/18 he was pleased to announce that the authority was able to give Town and Parish Councils the same amount of Local Council Tax grant as last year. But as the report sets out, the level of support in future years would be reducing adding that Central Government initially gave the grant to District Councils, separate from the Revenue Support Grant (RSG) which it then incorporated within the RSG; and RSG is being phased out. The Council have discussed the issues with Town and Parish Councils and will be reducing grant at a slower level than the RSG decline.

He advised members that the report explained the volatility around locally retained business rates and the reduction of New Homes Bonus in future years which made it prudent to continue to hold a high level of reserves and for the eighth year running it was proposed that there would be a freeze of the District’s Council Tax.

He drew Members attention to Section 3 of the report which detailed of the Projected Outturn for 2016/17 and explained why there was a forecast under spend of £1.3m compared to a budget of £1.1m and that some of this underspend had already been committed through reports to Cabinet and the recommendation was to transfer the surplus to reserves, and that both the end of year position and projected budget for 2017/18 relied heavily on the business rates income therefore recommending to wait until the business rates were finalised in May prior to making any commitments to how the under spends would be allocated.  Adding that Cabinet would receive further reports in due course.

Councillor R Blunt stated that Government advised Local Authorities to make a balanced budget and that the Cabinet had ensured that it was the case for the past ten years. He commended Councillor N J Rushton and the officers for their hard work and was pleased that it was proposed to freeze the Council Tax again as there were some authorities that were proposing a 15% increase. He stated that it was excellent to see that the Council was not putting Council Tax up and continued to provide a good service.

Councillor T J Pendleton stated that times were bumpy and that the budget was prudent and this was the right approach.

Councillor A V Smith stated that she was pleased to see that provision was being made to continue with the opening of the Coalville Market Hall toilets on Sundays.

It was moved by Councillor N J Rushton, seconded by Councillor R Blunt and

RESOLVED THAT:

Cabinet recommends to Council:

A.            That it notes the level of reserves and assurance statement by the Deputy Section 151 Officer in section 7 of the report.

B.            The budgeted surplus income over expenditure in 2017/18 is transferred to an earmarked reserve for further consideration after the completion of the 2016/17 accounts.

C.           The forecasted surplus income over expenditure in 2016/17 is transferred to the special projects reserve.

D.           Approval of the General Fund Revenue budget for 2017/18 summarised in appendix 1.

E.            Approval of the Special Expenses Budget for 2017/18 set out in appendix 2.

F.            That it freezes the District’s Council Tax in 2017/18.

Reason for decision: To enable the Council to set a balanced budget for 2017/18 as required by statute.