Agenda item

Report of the Interim Director of Resources

Presented by the Corporate Portfolio Holder

Councillor N J Rushton presented the report to members, drawing their attention to the amended report in the additional papers.  He highlighted the changes to the underlined amounts in recommendations 20(1) to 20(3) of the report and the tables.  He emphasised that there was no overall impact upon the final Council Tax calculation. 

 

Councillor N J Rushton referred members to the draft General Fund and Special Expenses budget proposals at Appendix 1 which were considered by Cabinet on 7 February and were recommended to Council for approval.  He highlighted the summary of the proposed budget set out on page 33 of the agenda.  He stated that with discussions ongoing about the future of Business Rates and the pending reductions in New Homes Bonus and Revenue Support Grant, this was a prudent budget which held a necessarily high level of reserves due to the risks involved. 

 

Councillor N J Rushton was pleased to recommend a freeze in Council Tax for the eighth year running which equated to a saving over the 8 year period of £27 for a Band D property.  He added that North West Leicestershire was the only district council in Leicestershire which had frozen its Council Tax for 8 years. He announced that for 2017/18 town and parish councils would be given the same amount of Local Council Tax Support as the previous year, however this would be reduced in future years due to the phasing out of the Revenue Support Grant from central government.

 

Councillor N J Rushton referred members to section 3 of the report which provided details of the projected outturn for 2016/17 and explained the forecast under spend of £1.3 million which was mainly due to additional business rates and planning income arising from the unprecedented growth taking place in North West Leicestershire.  He advised that it was recommended to transfer the under spend to a special projects reserve.  He highlighted that both the end of year position and the projected budget for 2017/18 relied heavily upon business rates income and therefore in order to be prudent it was recommended to wait until the business rates were finalised in May before making any commitments as to how the under spend should be utilised.

 

Councillor N J Rushton highlighted the General Fund, Special Expenses and HRA Capital Programmes set out at Appendix 3, the Treasury Management Strategy Statement 2017/18 and Prudential Indicators set out at Appendix 4, and the recommendations for setting the Council Tax at section 4 of the report.

 

Councillor N J Rushton noted the amendments submitted by the Labour Group.  He commented that the Activ8 scheme already provided for free swimming and he felt that the proposals to employ additional resource for the Policy Development Group and planning enforcement were a waste as the Council already employed a sufficient number of highly qualified people.  He added that the proposal to fund this from under spend was not the right thing to do before the end of the financial year.  He stated that the administration would not fund pet projects at the last minute without any reliable evidence to support them.

 

Councillor N J Rushton moved the recommendations set out in the report. This was seconded by Councillor R Blunt.

 

Councillor R Blunt made reference to the freeze in Council Tax and stated that he was proud to be able to support the residents of the district in this time of pressure.  He welcomed the building of much needed council homes and commended the Director of Housing for his work.  He reiterated his commitment to freezing Council Tax for the remainder of the administration.

 

The Chairman referred to the amendment to the motion which had been circulated in the additional papers.  He invited Councillor F Fenning to put forward his amendment.

 

Councillor F Fenning spoke to his amendment, thanking the staff who had worked on the proposals.  He also thanked the Cabinet for their work however he expressed concern for the future of the Council.  He highlighted that over the last 6 years the freeze in Council Tax had saved him £20.  He felt however that he could have afforded an extra £5 a year to preserve and improve the Council services that everyone took for granted.  He expressed pride in the staff.   

 

The Chairman reminded Councillor F Fenning to confine his comments to the amendment only.

 

Councillor F Fenning stated that the first amendment would indicate that the Council was serious about the wellbeing of residents and would encourage younger people and families into exercise.  He paid tribute to the superb surplus-generating leisure team.  He made reference to the proposals in relation to leisure services.  

 

The Chairman reminded Councillor F Fenning again to confine his comments to the amendment only.

 

Councillor F Fenning stated that the second amendment indicated the Labour Group’s dissatisfaction with scrutiny at the Council.  He felt that half hour Cabinet meetings and 5 Policy Development Group meetings a year was not effective scrutiny of a Council managing nearly £200 million of assets.  He added that the Labour Group wanted to scrutinise the inability of the Council to spend budgets properly. 

 

Councillor F Fenning stated that the third amendment highlighted a planning department which was under immense pressure to protect residents from landowners and property developers. 

 

Councillor F Fenning made reference to the savings made from freezing Council Tax and questioned the cost to the future of the Council.  He formally moved the amendment. 

 

This was seconded by Councillor J Legrys who reserved his comments.

 

Councillor T Eynon referred to the proposals to introduce free swimming and commended the Activ8 scheme, however she felt this could be extended.  She highlighted the number of complaints she had received relating to planning enforcement issues such as mud on the road and felt there was scope for improvement.  She expressed concerns in respect of the disabled facilities under spend.

 

The Chairman reminded Councillor T Eynon to confine her comments to the amendment only.

 

Councillor T Eynon made reference to the lightbulb project, which she considered to be of considerable significance across the county, and stated that the lack of mention of it in the budget demonstrated the need for greater support for Policy Development Group.

 

Councillor J Geary expressed concern at the way in which the proposal relating to planning enforcement had been dismissed.  He made reference to his recent experience working with the enforcement team and it became apparent that the team were unable to cope with the workload.  He accepted that enforcement was not a statutory service, however considering the amount of development taking place in the district he felt that it made sense to have an efficient and effective planning enforcement function. 

 

Councillor M Specht reminded members that mud on the road was not a matter for the district council.  As Chairman of the Policy Development Group he reiterated that every member of the group had an opportunity to raise concerns and he highlighted some of the recent work undertaken.  He stated that money should not be wasted on providing another officer as Policy Development Group was adequately supported by the Director of Resources. 

 

Councillor D Harrison commented that the proposals were indulgent and an utter waste of waste of time and resources.

 

Councillor J Legrys sought to raise a point of order and took great exception to the tone of Councillor D Harrison’s comments.   

 

The Chairman invited Councillor D Harrison to conclude his comments. 

 

Councillor D Harrison concluded that the proposed amendments would not contribute to or enhance the budget.

 

Councillor A V Smith reminded members that all children who participated in Club Activ8 could access free swimming.  She highlighted that a recent review had been undertaken of the planning enforcement function which was in the process of being implemented.  She added that agency staff had also been employed to work on the backlog.

 

Councillor R Johnson commented that mud on the road often came from development sites where developers were not adhering to conditions.  He referred to a white paper which revealed that local authorities will be able to increase fees from July this year if they commit to investing the additional fee income into their planning department.  He felt that this was a golden opportunity as the enforcement team was stretched.  He made reference to the lengthy legal processes involved.  He urged members to protect the public, and not treat them with disdain.

 

Councillor N Clarke commented that the Labour Group was looking to enhance the service for residents rather than the budget.

 

Councillor R Blunt stated that the fundamental problem with the proposal was utilising a potential one-off under spend to provide for an ongoing cost.

 

Councillor N J Rushton commented that the proposals may well have some merit, however considering them at this late stage was not appropriate, nor was funding them in the manner suggested.  He reiterated the principle of not increasing taxes unless necessary. 

 

Councillor J Legrys exercised his right of reply and stated that the reason for putting forward the amendment was simply to highlight the Labour Group’s concerns about the Council.  He commented that much had been said about saving people money, however the administration continued to take money from people who could not afford to pay and put this into reserves.  He stated that the finances of the Council were precarious.  He concluded that under spends should be spent on residents rather than put away in a bank account accruing very little interest. 

 

The Chairman then put the amendment to the vote. 

 

A recorded vote being required in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the voting was as follows:

 

For the motion:

Councillors R Adams, N Clarke, D Everitt, T Eynon, F Fenning, J Geary, R Johnson, J Legrys and S Sheahan (9).

 

Against the motion:

Councillors G A Allman, R Ashman, R D Bayliss, R Blunt, J Clarke, J Cotterill, J G Coxon, S Gillard, T Gillard, L Goacher, D Harrison, G Hoult, J Hoult, G Jones, K Merrie, T J Pendleton, P Purver, V Richichi, N J Rushton  A V Smith, N Smith, M Specht and D J Stevenson (23).

 

Abstentions:

Councillors R Canny, S McKendrick and M B Wyatt (3).

 

Therefore the motion was declared LOST.

 

The Chairman then directed members to the debate on the substantive motion, as set out in the report.

 

Councillor M B Wyatt stated that he was unable to support the budget which failed to tackle the real issues in tackling the decline of Coalville town centre.  However he welcomed the freezing of the Council Tax which was a welcome respite for many families struggling in the current climate of uncertainty.  He highlighted the need to look again at the recent free parking scheme from 3pm.  He stated that he had spoken to a number of local businesses and reported that the scheme had yet again had a detrimental effect upon local businesses and reduced footfall even further.  He urged the Cabinet to look again at introducing a fairer, more practical scheme by supporting free parking on market days.  He pointed out that this would not increase costs and would help to save small independent traders who were struggling.  He also asked the Cabinet to consider publishing Councillors’ expense claims individually to enable members of the public to see what elected members were claiming from the tax payer.  He expressed grave concerns about expense claims which he was scrutinising.

 

The Chairman reminded members to confine their comments to the budget. 

 

Councillor J Legrys stated that the Labour Group would support the budget due to the new Council housing, the reduction in rents and the increases on adaptations, which he could not vote against.  He added however that he opposed the increases in service charges.  He added that the Labour Group intended to hold the administration’s feet to the fire. 

 

Councillor K Merrie commended the budget and felt that it was a strong Conservative budget. 

 

Councillor R D Bayliss welcomed the support of the opposition in respect of the items in the housing budget.  He paid tribute to the Director of Resources for his conduct of treasury services and to the Director of Housing who had provided an inspiration for many of the projects.  He also commended the Head of Housing who had been a source of inspiration and support.  He made reference to the obligation to reduce Council house rents and the impact upon the business plan which had proven to be robust as the maintenance of the decent homes standard would continue for the foreseeable future whilst maintaining the service to tenants.

 

Councillor N J Rushton exercised his right of reply and stated that Coalville was not declining and resources were being concentrated on revitalising the town centre.  He explained that Councillors’ expenses were published each year.  He welcomed the support of the opposition and he commended the budget to members. 

 

The Chairman then put the motion to the vote. 

 

A recorded vote being required in accordance with the Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, the voting was as follows:

 

For the motion:

Councillors R Adams, G A Allman, R Ashman, R D Bayliss, R Blunt, R Canny, J Clarke, N Clarke, J Cotterill, J G Coxon, D Everitt, T Eynon, F Fenning, J Geary, S Gillard, T Gillard, L Goacher, D Harrison, G Hoult, J Hoult, R Johnson, G Jones, J Legrys, S McKendrick, K Merrie, T J Pendleton, P Purver, V Richichi, N J Rushton, S Sheahan, A V Smith, N Smith, M Specht and D J Stevenson (34).

 

Against the motion:

Councillor M B Wyatt (1).

 

Abstentions:

None (0).

 

Therefore the motion was declared CARRIED.

 

It was therefore

 

RESOLVED THAT:

 

a)    The level of reserves and assurance statement by the Deputy Section 151 Officer at Appendix 1 be noted;

 

b)    The transfer of the budgeted surplus income over expenditure in 2017/18 to an earmarked reserve be approved for further consideration after completion of the 2016/17 accounts;

 

c)    The transfer of the forecasted surplus income over expenditure in 2016/17 to the special projects reserve be approved;

 

d)    The General Fund Revenue Budget for 2017/18 be approved;

 

e)    The Special Expenses Budget for 2017/18 be approved;

 

f)     The Special Expenses precepts for 2017/18 be approved;

 

g)    The district Council Tax in 2017/18 be frozen;

 

h)    The decrease in Council house rents for 2017/18 by 1% be approved (average of 83 pence per week);

 

i)      The increase of 2% (13 pence per week) in garage rents for 2017/18 be approved;

 

j)      The reduction in central heating charges for 2017/18 by 10% be approved;

 

k)    The average increase of 1.03% (7 pence per week) in service charge for 2017/18 be approved;

 

l)      The ground rent increase at Appleby Magna caravan site of 2% (62 pence per week) be approved on the anniversary of each individual rent agreement in 2017/18;

 

m)  The lifeline charges increase of 8% (79 pence per week) for private customers and 2% for registered provider customers be approved from April 2017;

 

n)    The Housing Revenue Account (HRA) budget for 2017/18 at Appendix 2 be approved;

 

o)    The General Fund, Coalville Special Expenses and HRA Capital Programmes and planned financing for 2017/18 be approved;

 

p)    Capital expenditure in 2017/18 and capital expenditure in 2018/19 for the vehicle replacement programme only be approved;

 

q)    The remainder of the Capital Programmes 2018/19 to 2020/2021 be approved as indicative only at this stage.

 

r)     Authority be delegated to the Deputy S151 Officer in consultation with the Portfolio Holder (Corporate) to make any necessary amendments to the budget following receipt of the final government settlement.

 

s)    The following amounts be approved for the year 2017/18 in accordance with Section 31b of the Local Government Finance Act as amended;

 

(1)     31,262 being the amount calculated by the Council, in accordance with Regulation 3 of the Local Authorities (Calculation of Council Tax Base) (England) Regulations 2012, as its Council Tax base for the year.

 

(2)    The amounts specified in Table 1(Appendix 5) of this report being the amounts calculated by the Council, in accordance with Section 34 of the Local Government Finance Act 1992, as the amounts of its Council Tax base for the year for dwellings in those parts of its area to which one or more special items relate.

 

t)     The following amounts be now calculated by the Council for the year 2017/18 in accordance with Sections 31a and 31b of the Local Government Finance Act 1992 as amended:

 

(1)     District / parish gross expenditure

£61,008,336being the aggregate of the amounts which the Council estimates for the items set out in Section 31a (2) of the Act.

 

(2)    Income

               £53,772,434 being the aggregate of the amounts which the council          estimates for the items set out in section 31a (3) of the Act.

 

(3)    District / parish net expenditure

               £7,235,903 being the amount by which the aggregate at s(1) above          exceeds the aggregate at s(2) above, calculated by       the Council in accordance with Section 31a (4) of the Act as its Council Tax                requirement for the year.    

 

(4)    Basic amount of tax (including average parish precepts)

               £231.46 being the amount at s(3) above, divided by the amount    stated as          the Council Tax base in parts of the Council’s area, calculated by the            Council in accordance with Section 31b of the Act as the basic amount of its       Council tax for the year.

 

(5)    Parish precepts/special expenses

               £2,278,424 being the aggregate amount of all special items referred to in             Section 35(1) of the Act.

 

(6)    Basic amount of tax (basic Council Tax – district)

£158.58 being the amount at 20(4) above less the result given by dividing the amount at 20(5) above by the amount as stated as the         Council Tax base for the whole of the Council area, calculated by the Council in accordance with Section 34(2) of the Act, as the basic amount of its Council Tax for dwellings in those parts of its area to which no special item relates.

 

(7)    Basic amount of tax (parished areas)

               The amounts listed in column 5 of Table 2to this report, being the            amounts given by                adding to the amount at t(6) above, the amounts of the      special item or items relating to dwellings in those parts of the Council’s    area mentioned, divided in each case by the amount stated as the Council                Tax base in parts of the Council area, calculated by the Council in            accordance with Section 34(3) of the Act as the basic amounts of its Council Tax for the year for dwellings in those parts of its area to which one or   more special items relate.

 

(8)    District /parish Council Tax rates

               the amounts set out  in Table 3 tothis report being the amounts    given by          multiplying the amounts at t(6) and t(7) above by the number which, in the proportion set  out in Section 5(1) of the Act, is applicable to dwellings listed   in a particular valuation band divided by the number which in that proportion                is applicable to dwellings listed in valuation band D, calculated by the       Council in accordance with Section 36(1) of the Act as the amounts to be           taken into account for the year in respect of categories of dwelling listed in different valuation bands.

     

u)    Major precepting authorities

It be noted that the amounts set outin Table 4 to this report are the amounts notified by Leicestershire County Council, Leicestershire Police and Crime Commissioner and the combined Fire Authority in accordance with Section 40 of the Local Government Finance Act 1992 as their precepts for 2017/18 for each of the categories of dwellings listed.

 

v)     Council Tax rates – all bands

       Having calculated the aggregate in each case of the amounts at t(8)(Table 3) and u (table 4)above, the Council in accordance with Section 30(2) of the Local Government Finance Act 1992 hereby sets the amounts of Council Tax for the Council’s area for the year 2017/18 for each of the categories of dwellings as shown in Table 5. 

 

w)   Referendums relating to Council Tax increases

It be noted that the relevant basic amount of Council Tax for 2017/18 is not excessive.

 

x)    Treasury management strategy

The Treasury Management Strategy Statement 2017/18, Prudential Indicators 2016/17 (revised) and 2017/18 – 2019/20, and annual minimum revenue provision statement 2017/18 be approved.