Agenda item

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 Member commented that good management of reserves was of vital importance.  He highlighted the importance of a regular review of reserves to ensure that service standards were maintained and to facilitate continued investment in the District.  Members were reminded that reserves were there to protect the Council against the unexpected and also to fund specific projects, tasks or other known commitments.

The Executive Member concluded by referring to the capital programme for 2019/20 of around £41 million pounds.  He referred in particular to Hertford Theatre, the leisure sites and Old River Lane.  He thanked Officers for their ongoing support in formulating the budget report and developing solid and robust services plans going forward.  He commended the budget to the Council for approval.

Councillor G Williamson moved and Councillor J Goodeve seconded, a motion that the recommendations now detailed, be approved. 

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,
P Ballam, S Bell, P Boylan, E Buckmaster, Mrs R Cheswright, S Cousins, K Crofton,
G Cutting, B Deering, I Devonshire, H Drake,
J Goodeve, R Henson, G Jones, J Jones,
J Kaye, G McAndrew, M McMullen,
D Oldridge, T Page, M Pope, L Radford,
S Reed, P Ruffles, S Rutland-Barsby,
M Stevenson, T Stowe, N Symonds,
K Warnell, G Williamson, C Woodward,
J Wyllie.

AGAINST

None

ABSTENTIONS

Councillors R Standley and J Taylor.

For: 35

Against: 0

Abstentions: 2

Council approved the recommendations as now detailed.

RESOLVED – (A) the draft service plans for 2019/20 be adopted;

(B)   the East Herts share of Council Tax for a band D at £169.09 be approved;

(C)   the updated position on the Medium Term Financial Plan and Budget for 2019/20 including the budget pressures and risks be approved;

(D)   the new savings in 2019/20 as shown in table 9 be approved;

(E)   implementation of the Capital Programme as set out in Essential Reference Paper ‘C’ be approved;

(F)   the schedule of charges set out in Essential Reference Paper ‘D’ with an overall increase of 2.5% for 2019/20, be approved; and

(G)   authority to approve the final schedule of taxi fees and charges for 2019/20, as in Essential Reference Paper ‘D’, following the required consultation with the taxi trade, be delegated to the Head of Strategic Finance and Property acting in consultation with the Chairman of the Licensing Committee.

(see also Minute 318)