Agenda item

Cabinet considered the budget proposals for the General Fund, Housing Revenue Account, Capital budgets and Treasury Management Strategy for the financial year 2018-19.

The Council would continue to face significant cuts in Government funding over the next few years and with substantial savings already having been made in recent years, it was becoming increasingly difficult to identify further savings without impacting on services. The budget proposals presented a number of income generating proposals and efficiency savings, which the Cabinet to propose a balanced budget for 2018-19, whilst minimising the impact on services.

Members noted that the funding pressures were substantial in respect of 2018-19. Government funding had been reduced, primarily in respect of Revenue Support Grant; which had been reduced by over £600,000 compared to 2017-18 financial year. The New Homes Bonus had been reduced by over £800,000 and additional £1 million has also been set aside for the costs arising from homelessness. After adding in inflationary pressures and other adjustments, it was forecasted that there would a gross budget gap of £2.8 million.

To address the budget gap, Council had already approved increases to fees and charges which would generate an additional £390,000. Further income generation plans, set out in paragraph 7.5 of the Cabinet report, were in train for food hygiene, trade waste, the port and foreshores. Efficiencies would also be delivered, notably through corporate restructuring, East Kent Services outsourcing and a renegotiation of the Your Leisure contract.

Last year, Council approved a one-off drawdown of reserves of £450,000 as a result of a late change in government funding. It was therefore worth noting that the 2018-19 budget proposals included the permanent funding of this £450,000 loss. Additionally, the Medium Term Financial Strategy allows for a £150,000 per annum repayment to reserves, over a three year period starting in 2018-19.

Cabinet noted that the discussions regarding the budget proposals were against a background of ever substantial uncertainties over the next four years. There were those macro-economic uncertainties that all organisations in the country faced, with particular reference to interest rates, inflation and Brexit. In addition, the government was still to decide on the regime for local government finance.Government was still consulting on the details of business rates retention and Fair Funding Review.

The following Members spoke under Council Procedure Rule 20.1:

Councillor Campbell;

Councillor Gregory;

Councillor Game.

Councillor Townend proposed, Councillor Wells seconded and Cabinet agreed the following recommendations to Council on 08 February 2018:

1.  That the Medium Term Financial Strategy at Annex 1 is approved;

General Fund

2.  That the General Fund revenue budget estimates for 2018-19 are approved;

3.  That following on from the decision made by Ramsgate Town Council not to continue with the subsidy for free Saturday parking at the Royal Harbour car park, as outlined in section 4.2 and 4.3, the Council agree to charge for parking on Saturday at the Royal Harbour car park and free Saturday parking will revert to Cannon Road car park from 1 April 2018 as originally recommended in the 2016-17 Fees and Charges report considered at the Council meeting on 3 December 2015.

Housing Revenue Account (HRA)

4.  That the HRA budget estimates for 2018-19 to 2021-22 and the Housing Revenue Account services charges as shown at Annex 3 are approved.

Capital Programme

5.  That the General Fund and Housing Revenue Account capital budgets for 2018-19 are approved;

6.  That a new capital project addressing homelessness pressures, as set out in section 9.29, is included within the General Fund capital programme for 2018-19 to be funded by prudential borrowing;

Treasury Management

7.  That the Treasury Management Strategy Statement, Minimum Revenue Provision Policy Statement and Annual Investment Strategy as shown in Annex 5 are approved;

8.  That the Flexible Use of Capital Receipts Strategy for 2018-19 as shown in Annex 6 is approved;

9.  That the Section 151 Officer’s Assurance Statement as set out in section 13 of this report is noted.