Issue - meetings

Minute 552 refers

Note – In respect of this matter, the provisions of The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, require that a recorded vote is taken on the matter. 

The Executive Member for Finance and Support Services presented the Budget and Medium Term Financial Plan (MTFP) proposals for 2107/18 – 2020/21.  He referred to the national context and the expectation that the Government would be looking for further savings in the forthcoming Budget.  He reminded Members that the Council had been given a four year settlement, but there remained a budget gap, which could only be met by reducing costs and increasing income.

He referred to initiatives, such as Digital East Herts, increasing efficiencies and ongoing staffing restructures that aimed to achieve a better use of the Council’s diminishing resources.  In terms of increasing income, he spoke of the need to increase investment returns by taking advantage of commercial opportunities that might be available, such as developing a housing property company. 

The Executive Member also referred to proposals on fees and charges for the coming year, the Council’s use of reserves and the capital programme.  He detailed the revised New Homes Bonus regime and the impact this would have on the Council’s funding.  Finally, he referred to Council Tax levels and reminded Members that this had been frozen or reduced for the past seven years.  However, it had always been recognised that this would be unsustainable in the long term and so a rise of 2% for this year would be proposed.

He concluded by thanking Officers across all services for their continued hard work and support, and by stating that whilst the funding position remained volatile for the foreseeable future, there remained challenges and opportunities ahead for the Council.

In accordance with the provisions of The Local Authorities (Standing Orders) (England) (Amendment) Regulations 2014, a recorded vote was taken on the budget proposals now detailed, the result being:

FOR

Councillors D Abbott, A Alder, M Allen, D Andrews, P Ballam,

P Boylan, R Brunton, E Buckmaster, M Casey, Mrs R Cheswright, S Cousins, K Crofton, G Cutting, B Deering, I Devonshire,

H Drake, M Freeman, B Harris-Quinney, L Haysey, G Jones,

J Jones, G McAndrew, M McMullen, P Moore, W Mortimer,

D Oldridge, T Page, M Pope, S Reed, P Ruffles,

S Rutland-Barsby, C Snowdon, R Standley, M Stevenson,

N Symonds, K Warnell, G Williamson, C Woodward, J Wyllie.

AGAINST

None

ABSTENTIONS:

None

For: 39

Against: 0

Abstentions: 0

Council approved the recommendations as now detailed.

RESOLVED – that (A) the comments of the joint meeting of Scrutiny Committees be received;

(B)      the forecast 2016/17 underspend transfer to the Transformation Reserve, as now detailed at paragraph 4.11 of the report submitted, be approved;

(C)      the 2017/18 Revenue Budget, including:

·               Budget Savings and Growth, set out in Section 6, paragraph 6.2 of the report submitted;

·               Contingency Budget, set out in Section 8, paragraph 8.3 of the report submitted;

·               use of Earmarked Reserves, set out in Section 9 of the report submitted;

·               consideration of the advice from the Section 151 Officer on the level of reserves and the robustness of the forecasts in setting the budget as  ...  view the full minutes text for item 581

The Executive Member for Finance and Support Services submitted a report which set out proposals in respect of:

·                        the 2016/17 revenue budget forecast outturn;

·                        the 2017/18 revenue budget;

·                        the 2017/18 Schedule of Charges;

·                        the 2016/17 (revised) to 2020/21 Capital Programme;

·                        the Medium Term Financial Plan 2017/18 – 2020/21; and

·                        the Council’s Reserves.

He informed the Executive that the joint meeting of Scrutiny Committees, at its meeting held on 17 January 2017, had supported the budget proposals, which included a council tax rise of 2%.

In response to a question, the Head of Strategic Finance and Property assured Members that although the salaries budget appeared overspent, this had been caused by planned fixed term working on specific projects that had been funded from reserves.  Officers continued to monitor salaries budgets carefully.

The Leader referred to the impending departure of the Head of Strategic Finance and Property and thanked him for service.

The Executive supported the proposals now detailed.

RECOMMENDED – that (A) the comments of the joint meeting of Scrutiny Committees be received;

(B)      the forecast 2016/17 underspend transfer to the Transformation Reserve, as now detailed at paragraph 4.11 of the report submitted, be approved;

(C)      the 2017/18 Revenue Budget, including:

·                        Budget Savings and Growth, set out in Section 6, paragraph 6.2 of the report submitted;

·                        Contingency Budget, set out in Section 8, paragraph 8.3 of the report submitted;

·                        use of Earmarked Reserves, set out in Section 9 of the report submitted;

·                        consideration of the advice from the Section 151 Officer on the level of reserves and the robustness of the forecasts in setting the budget as required by Section 25 of the Local Government Act 2003 (section 15);

be approved;

(D)      the proposed 2017/18 Schedule of Charges, as detailed at section 7 of the report submitted, be approved;

(E)      the East Herts Council element of the Council Tax Demand, as detailed in paragraph 11.4 of the report submitted, be approved;

(F)       the Capital Programme for the period 2015/16 (Revised) to 2019/20, the funding of the programme and the consequential revenue budget implications as set out in section 12 of the report submitted, be approved;

(G)      the Medium Term Financial Plan covering 2016/17 (Revised) to 2020/21 as set out in section 13 of the report submitted, be approved; and

(H)      the Reserves Policy as set out in Section 14 of the report submitted, be approved.

The Executive Member for Finance and Support Services submitted a report which set out proposals in respect of the following:

·                        The 2016/17 revenue budget forecast outturn

·                        The 2017/18 revenue budget

·                        The 2017/18 Schedule of Charges

·                        The 2016/17 (revised) to 2020/21 Capital Programme

·                        The Medium Term Financial Plan 2017/18 – 2020/21

·                        The Council’s Reserves

The Head of Strategic Finance and Property detailed a number of key points in respect of the 2017/18 revenue budget.  He highlighted a number of useful sections of the report and provided a detailed breakdown of the overall format of the report and supporting Essential Reference Papers.

The Head responded to a number of questions that had been submitted to Officers in advance of the meeting.  The Ambassador and Executive Member for Shared Services responded to a query from Councillor M Casey regarding long term loans and associated repayments that were detailed in the Medium Term Financial Plan (MTFP). 

Officers and the Executive Member for Development Management and Council Support responded to queries from Councillor M Pope regarding Charringtons House, agency costs in Planning and Building Control and the price reduction for recycling and the cost that was passed on to East Herts Council.

The Head of Strategic Finance and Property responded to a query from Councillor M Casey regarding the annual pension fund deficit payment and the limited influence had by the Authority over what was part of a County Council Pension Scheme. 

Following a comment from Councillor K Crofton, the Head of Strategic Finance and Property confirmed that whilst Heads of Service were responsible for delivering against budgets, there was a culture of honesty with Heads of Services declaring any potential budget deviations.  He confirmed that many projects would not have gone ahead without the use of reserves.

Members had a general debate on the merits of increasing or decreasing Council Tax and they also discussed ongoing efficiency savings.  Councillor I Devonshire proposed and Councillor J Wyllie seconded, a motion that the Executive be advised that the joint meeting of Scrutiny Committees recommends a 2% increase in Council Tax.  After being put to the meeting and a vote taken, this motion was declared CARRIED.

Members received the report and supported the recommendations now detailed.

RESOLVED – that (A) the report be received; and

(B)   the Executive be advised that the joint meeting of Scrutiny Committees recommends a 2% increase in Council Tax.