Decision details

The Executive Member for Finance and Support Services presented the Budget and Medium Term Financial Plan (MTFP) proposals for 2106/17 – 2019/20.  He referred to the national situation and the difficulties in planning for future years, given the backdrop of reduced funding for local government, phased withdrawal of Revenue Support Grant and uncertainties over the New Homes Bonus and Business Rates retention.

The Executive Member reminded Council of the new approach to producing integrated strategic and financial planning to ensure that resources were best targeted at the Council’s priorities.  He spoke of the need for the Council to explore commercial opportunities that could open up new sources of income as well as increase investment income.  He reminded Members of the purchase of the Old River Lane site and the returns this had already achieved.

The Executive Member highlighted some of the achievements of the past year and looked forward to funding projects that would help deliver the Council’s priorities in the next year.  These included using New Homes Bonus funds to support public health projects, subsidising free car parking in Buntingford and Sawbridgeworth and supporting towns and parishes in local projects.

The Executive Member detailed the use of Reserves and the Capital Programme to support a range of projects across a number of priorities.  He drew attention to the Council Tax and the proposal that this would be frozen, which would be the sixth year in which it had been either frozen or reduced.  However, this would not be sustainable in the long term and the MTFP included a modest 1% increase from 2017/18 onwards.  The Executive Member cautioned Members of the continuing challenges ahead and the need to identify further efficiencies.

Since the Executive meeting of 2 February, the Government had issued the final settlement and an additional briefing on this had been detailed in the supplementary agenda papers.  The Executive Member commented that this had resulted in transitional funding of £120k in each of the next two years.  As a result, he proposed an additional recommendation that a Transition Funding Reserve be established for using these funds in 2018/19.

Finally, the Executive Member concluded by stating that the Council would yet again be proposing a balanced budget that would deliver improved services to all who lived and worked in East Herts.  He thanked Officers across all services for their continued hard work and support.

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,

R Brunton, K Brush, E Buckmaster, S Bull, M Casey,

R Cheswright, S Cousins, K Crofton, G Cutting, B Deering,

H Drake, M Freeman, L Haysey, R Henson, D Hollebon,

A Jackson, G Jones, J Kaye, G McAndrew, M McMullen, P Moore, W Mortimer, D Oldridge, T Page, M Pope, P Ruffles, S Rutland-Barsby, C Snowdon, S Stainsby, R Standley, N Symonds,

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 2015/16 Forecast Outturn as set out in Section 4 of the report submitted, including the proposed contributions to and from Reserves, be approved;

(C)      the forecast 2015/16 revenue underspend transfer to the Transformation Reserve, as now detailed at paragraph 4.11 of the report submitted, be approved;

(D)      the 2016/17 Revenue Budget, including:

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

·                        Budget Savings set out in Section 6, paragraph 6.3 of the report submitted;

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

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

·                        consideration of the advice from the Director of Finance & Support Services on the levels of reserves and robustness of the forecasts in setting the budget as required by Section 25 of the Local Government Act 2003 (section 15);

be approved;

(E)      the proposed 2016/17 Schedule of Charges, as detailed at section 7 of the report submitted, be approved;

(F)       the East Herts Council element of the Council Tax Demand, as now detailed in paragraph 11.3 of the report submitted, be approved;

(G)      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;

(H)      the Medium Term Financial Plan covering 2015/16 (Revised) to 2019/20 as set out in section 13 of the report submitted, be approved;

(I)        the Reserves Policy as set out in Section 14 of the report submitted, be approved; and

(J)       an additional MTFP Transition Funding Reserve is created and the Transition Grant funding received in 2016/17 and 2017/18 is held in this reserve to be used in 2018/19 to reduce the amount of one-off savings required.

(see also Minute 579)