Agenda item

Report of the Head of Finance

Presented by the Corporate Portfolio Holder

Councillor N J Rushton presented the report to Members, outlining the General Fund and Special Expenses revenue budgets for 2014/15 which included over £11 million net expenditure which enabled the Council to continue to deliver front line services without the need to increase Council Tax.  He referred to the Housing Revenue Account budget for 2014/15 which was in accordance with the rent convergence policy introduced in 2002.  He explained that this would result in an average rent increase of £4.30 per week in rent for tenants but in return they were seeing a massive investment in improvements to their homes.  He added that the rent increase would also ensure that the Council would be in a position to repay its HRA debt as agreed in the 30 year Housing Business Plan.  He explained that garage rents would increase by 3.2% and there would be a 1.02% increase in service charges.

 

Councillor N J Rushton outlined the proposals in the General Fund Capital Programme and the Coalville Special Expenses Programme for 2014/15. He referred to the Housing Revenue Account Capital Programme and reported that the Council was still on target for all properties to achieve decent homes status by 31 March 2015.

 

Councillor N J Rushton concluded by thanking the Chief Executive, Head of Finance and all staff who had been involved in preparing the budget and to all the staff who continue to deliver the services so well within the agreed budgets.

 

The recommendations within the report were moved by Councillor N J Rushton and seconded by Councillor R Blunt.

 

Councillor R Blunt commented that he hoped to have cross party support as all could be proud of the budget proposals.  He explained that he had been involved in discussions with other Councillors about what they would have liked to have seen in the budget proposals but due to the timescales of the budget process, were unable to accommodate.  He urged Members to have these discussions in plenty of time so that it could be considered for next year’s budget proposals. 

 

Councillor P Hyde thanked all staff for their work on the budget process.  He was pleased to see that certain proposals had been removed but was disappointed that there was nothing included to assist in getting people out of poverty. 

 

Councillor S Sheahan commented that he was pleased that the green waste collection charge had been removed but was disappointed that there had been no consideration of the cumulative impact on Council tenants due to another increase in rent.  He concluded that he could not support the budget proposals due to this as it was attacking people that could not afford it.

 

Councillor D J Stevenson commented that if the Labour group had major issues with the budget proposals then they should have submitted an alternative budget proposal for Members to consider.

 

Councillor N Smith thanked Officers for fantastic budget proposals.  He added that he was aware that the Labour group were asking for an increase in Council Tax which in his opinion would not be helping people.

 

Councillor A C Saffell explained that his main issue with the budget proposals was how the New Homes Bonus was being spent, as promises had not been kept.  He stated that there had been 50% more housing built in Castle Donington and therefore more of the New Homes Bonus should have been spent there.  He added that upon asking a large number of his constituents, no one was against an increase in Council Tax as it was expected.  Therefore he believed that there should be an increase in Council Tax to ease the burden on the poorest people of the District.

 

Councillor T Neilson expressed strong opposition to the budget proposals.  He commented that the freeze on Council Tax would only benefit the people who were on the highest banding points; add this to the current decrease in benefits and the budget proposals do not help at all.  He added that the Council was over relying on the New Homes Bonus and more income was needed.  He concluded that the budget proposals were unfair to the poorest people of the District.

 

Councillor R D Bayliss referred to Councillor S Sheahan’s comments regarding the rent increase and stated that it was necessary to provide decent homes.  The cumulative impact of being a low rental authority meant that in the past 70% of the council stock was not decent.  He added that he believed it was appropriate to charge a decent rent for decent homes.

 

Councillor J Legrys felt that the budget proposals were not fair or transparent and therefore he could not support it.  He commented that the poorest people in the District would suffer and he predicted that there would be more introductions of charges and then the removal of them in the future for political gain.  He commented that he was pleased that money was being spent on Linden Way Depot’s recycling units but as Leicestershire County Council were looking at cutting recycling grants, he was not sure if it was a good use of money.  He concluded by referring to the provision to ‘spruce up Coalville’ mentioned by the Leader and reminded Members of a document produced by the Conservative group when they came into power about the promised vision of Coalville. In his opinion this was a waste of money which could have been used elsewhere.  He thanked the Democratic and Support Services Team Manager for responding to the request to provide the document. 

 

Councillor C Large agreed that there were elements missing from the budget proposals and as recommended by the Leader, she would be discussing this with him further, but unfortunately as there were no alternative budget proposals to consider she would reluctantly be voting in favour.

 

Councillor D De Lacy commented that the budget proposals were an improvement to earlier in the process, and he welcomed the freeze in car park charges and the removal of the green waste collection charge.  He made a point that a cynical person might have said that unpopular proposals had been included only to be removed when the finances were not as expected; he added that he was not a cynical person.  He felt that the Council tenants were the people that would suffer due to the Bedroom Tax, rent increases and the benefit cuts.  He did not agree with the level of unfairness and therefore could not support the budget proposals.

 

Councillor N J Rushton concluded the debate and reiterated that the Council was dealing with the economic climate well whilst still delivering front line services.

 

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

 

For the motion:

Councillors G Allman, R D Bayliss, R Blunt, A Bridges, J Bridges, J Cotterill, T Gillard, J Hoult, G Jones, C Large, C Meynell, T Pendleton, V Richichi, N J Rushton, A Smith, N Smith, M Specht and D J Stevenson (18).

 

Against the motion:

Councillors R Adams, N Clarke, D De Lacy, D Everitt, J Geary, D Howe, P Hyde, R Johnson, J Legrys, L Massey, T Neilson, A C Saffell, S Sheahan, L Spence, R Woodward and M B Wyatt (16).

 

Abstentions:

None (0).

 

The motion was CARRIED.

 

RESOLVED THAT:

 

1)    The Section 151 Officer’s comments on the robustness of the estimates and adequacy of reserves be noted.

 

2)    The District Council Tax for 2014/15 be frozen.

 

3)    The transfer of the surplus income over expenditure in 2014/15 to the General Fund balance at 31 March 2015 be approved.

 

4)    The Housing Revenue Account rent increase for 2014/15 be approved.

 

5)    The increase in the rent for garages for 2014/15 be approved.

 

6)    The increase in the Housing Revenue Account service charges for 2014/15 be approved.

 

7)    The ground rent increase at Appleby Magna Caravan Site be approved.

 

8)    The increases in lifeline charges be approved.

 

9)    The General Fund and Housing Revenue Account budgets for 2014/15 be approved.

 

10) The Coalville Special Expenses budget for 2014/15 be approved.

 

11) The other special expenses precepts for 2014/15 be approved.

 

12) The proposed Coalville Special Expenses and Housing Revenue Account Capital Programmes for 2014/15 and planned financing be approved.

 

13) The capital expenditure in 2014/15 and capital expenditure in 2015/16 for the vehicle replacement programme only, be approved.

 

14) The remainder of the Capital Programmes 2015/16 to 2017/18 be approved as indicative only at this stage.

 

15) The following amounts for the year 2014/15 be approved in accordance with Section 31B of the Local Government Finance Act 1992 as amended:

 

i)      29,074 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.

 

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

 

16) Council approve that the following amounts be now calculated by the Council for the year 2014/15 in accordance with Sections 31A and 31B of the Local Government Finance Act 1992 as amended:

 

      i.        District / Parish Gross Expenditure

£68,024,807 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(2) of the Act.

 

     ii.        Income

      £61,488,126 being the aggregate of the amounts which the Council estimates for the items set out in Section 31A(3) of the Act.

 

    iii.        District / Parish NeT Expenditure

      £6,536,681 being the amount by which the aggregate at 16(1) above exceeds the aggregate at 16(2) above, calculated by the Council in accordance with Section 31A(4) of the Act as its council tax requirement for the year.

   iv.        Basic Amount of Tax (Including Average Parish Precepts)

£224.83 being the amount at 16(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.

 

    v.        Parish Precepts / Special Expenses

£1,926,126 being the aggregate amount of all special items referred to in Section 35(1) of the Act.

 

   vi.        Basic Amount of Tax (Basic Council Tax – District)

£158.58 being the amount at 16(4) above less the result given by dividing the amount at 16(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.

 

  vii.        Basic Amount of Tax (Parished Areas)

            The amounts listed in column 5 of table 2 to this report, being the amounts given by adding to the amount at 16(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.

 

 viii.        District / Parish Council Tax Rates

            The amounts set out  in table 3 to this report being the amounts given by multiplying the amounts at 16(6) and 16(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.

 

17)Major Precepting Authorities

That it be noted that the amounts set out in 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 2014/15 for each of the categories of dwellings listed.

 

18)Council Tax Rates – All Bands

That, having calculated the aggregate in each case of the amounts at 16(8) (table 3) and 17 (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 2014/15 for each of the categories of dwellings as shown in table 5. 

 

19)Referendums relating to Council Tax Increases

To note that the relevant basic amount of council tax for 2014/15 is not excessive.

 

20)Treasury Management Strategy

The Treasury Management Strategy Statement 2014/15, Prudential Indicators 2013/14 (Revised) and 2014/15 - 2016/17, and Annual Minimum Revenue Provision Statement 2014/15 be approved.