Agenda item

Cabinet produced the budget proposals that had to be developed within the context of a restrictive local government finance environment. In the process Member for Financial Services said that the budget framework would ensure that the Council’s resources were managed efficiently and effectively. The Council would continue to face significant cuts in Government funding over the next few years.

Substantial savings have been made in recent years. Cabinet noted that it was becoming increasingly difficult to identify further savings without impacting on frontline services. Despite these challenges, Cabinet proposed a budget that would secure a number of savings. The income generating proposals in the report would enable Council to put forward a balanced budget for 2016/17 which would have minimum impact on service delivery.

In the proposals, budgetary growth had been kept to a minimum. However, Cabinet acknowledged the attendant cost pressures due to inflationary increases and unavoidable commitments that were identified in the report.

Savings that were required to address the budgetary pressures had been identified. These were in addition to the fees and charges increases that were agreed by Council on 3 December 2015. They were also in addition to other income from an assumed increase in council tax and contribution from the Collection Fund.

A review of the Reserves had been done and a detailed risk assessment of reserves was shared at the meeting. Cabinet noted that Council would not be drawing down from General Reserves to balance the budget for 2016/17. An increase in Council Tax of 1.97% was being proposed and this would enable Council establish a balanced budget.

Other key issues to note were a significant projected loss of income of £4.56 million over the next four years for the Housing Revenue Account (HRA). This was due to the Government announcement to reduce rental income by 1% a year. The main expenditure items in the HRA relate to the management and maintenance of the housing stock. The proposed HRA balance was considered to be sufficient to support the 30 year Business Plan.

Over the last five years the Council had seen a significant reduction in capital receipts from the sale of assets. It was therefore necessary to review the capital programme to ensure sufficient funding was available for existing schemes that had already commenced and that any new projects identified would be of the highest corporate priority. The proposed programme is based on current projections of available funds.

The following Members spoke under Council Procedure Rule 24.1:

Councillor Campbell;

Councillor I. Gregory;

Councillor Shonk.

Councillor Townend proposed, Councillor Wells seconded and Cabinet agreed the following:

1.  To approve and recommend to Full Council the draft Medium Term Financial Plan at Annex 1 (of the Cabinet report);

2.  To approve and recommend to Full Council the draft General Fund Revenue budget estimates for 2016-17 to 2019-20 and the resulting budget requirement for 2016-17;

3.  To approve and recommend to Full Council that the level of general reserves be held at £2.011m, and specific earmarked reserves be used as identified in Annex 5 (to the report);

4.  To approve and recommend to Full Council the HRA budget estimates for 2016-17 to 2019-20 and the HRA services charges as shown at Annex 3 of the report;

5.  To delegate the authority for the approval of the EK Housing Management Fee to the Director of Community Services in consultation with the Portfolio Holder for Housing and Planning;

6.  To approve and recommend to Full Council a reduction in the grant to minor preceptors as per section 3.15 (of the report);

7.  To approve and recommend to Full Council the General Fund and Housing Revenue Account Capital Budgets for 2016-17 as detailed at Annexes 2 and 4 (to the Cabinet report).