Issue - meetings

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 submitted a report that updated and set out proposals and recommendations in respect of:

·               The Medium Term Financial Plan 2019/20 – 2022/23

·               The 2019/20 to 2022/23 Capital Programme

·               The 2019/20 Schedule of Charges

The Executive Member stated that the papers represented a comprehensive report into all aspects of the budget for the next financial year and the Medium Term Financial Plan until 2023.  The report also covered revenue budgeting, the schedule for fees and charges, council tax, the capital programme and the use of reserves.

Council was advised that the report also covered service plans for the year ahead and these were derived from the corporate strategic plan around which the budget had been shaped.  The Executive Member referred to and summarised the key elements that shaped the core spending power of the Authority.  He stated that the 4^th year of the government settlement had not resulted in any surprises for the Council.

The Executive Member referred to the possibility of 100% retention of business rates at a later date.  The current rate was 70% and Members were reminded that the Council had no control over the setting of business rates.  The 11 Hertfordshire Authorities had been successful in applying to pool business rates although the increase in income was expected to be modest for East Herts.

The Executive Member referred to the government’s ‘fair funding review’ and an evaluation of each Authorities’ resources and its ability to raise Council Tax.  The budget had been designed to be as immune from external influences as was possible.  The budget was therefore reliant on sources of income the Authority could generate and control for itself.

The Executive Member reassured Members that the net cost of services would remain unchanged and there would no reduction in frontline services.  All Heads of Service would however have a set cash budget and they would be expected to manage their finances within those set limits.  Members were advised that the Authority had started to explore commercial opportunities in the same way as a number of other local Authorities in recent times.  The Executive Member referred to the work of the Financial Sustainability working group in this respect.

Council was reminded that Council Tax had been reduced or maintained for a number of years for residents.  The Government had advised local authorities to be financially more self-sufficient and subsequently the proposal for the 19/20 budget was that Council Tax should be raised by the maximum allowable without a referendum and this would equate to £5 for a band D property.  Similar increases had been factored into the lifespan of the Medium Term Financial Plan.

The Executive Member referred to fees and charges as another significant source of income for the Authority.  A general increase of 2.5% had been factored into the budget although this would not apply to car parking charges.  This was a smaller increase than last year and was generally in line with inflation.

The Executive  ...  view the full minutes text for item 319