A new Budget for the period 2017/2018.

· The pre-consultation draft report will be submitted to CEB in December 2016.

The post-consultation draft report will be submitted to CEB in February 2017

· The Budget will be submitted to Council for adoption in February 2017.

The Head of Financial Services submitted a report which presented the outcome of the budget consultation and the Council’s Medium Term Financial Strategy for 2017-21 and 2017-18 Budget, for recommendation to Council

Cllr Turner, Board Member for Finance, Asset Management and Public Health said that the government grant will be zero by 2020. There are no frontline service cuts, we are investing in service improvements and are creating a trading company so we can increase the trading we do.

Highlights include:

·         the housing company being established;

·         we’re investing in new properties for homeless families and building new council housing, and

·         Retaining in full our homelessness prevention budget and our budget for the third sector.

Financial pressures include changes to the New Homes Bonus (NHB) which caused a grant reduction and pressure in year 4.  A reduction in funding from business rates as part of the fairer funding process will give us less money than we would have wished.

Additional budget items include money for low emission taxi vehicles, designer costs at Cowley Marsh pavilion and additional funding to assist children centres run stay and play for one year only.

In terms of the Housing Revenue Account, the government had delayed introducing the Right to Buy Scheme to housing associations so the Council will not be forced to sell high value empty council houses to reimburse the government in 2017/18.

Council agreed two budgetary motions at its meeting on 6 February –

·         To retain the additional £200,000 pension provision,  which will cover potential increased liability to the Council arising from TUPE transfer of staff to a Local Authority wholly owned company for Direct Services; and

·         To waive internment fees for stillborn babies and children under 12 years old for Oxford residents. Changing the Council’s fees and charges with immediate effect is estimated to reduce income by a small amount in 2016-17 and around £5100 in a full year for 2017-18. This pressure can be accommodated within the Council’s overall budget in 2016-17 and 2017-18, and the budget may be rebased if appropriate in future years.

Cllr Hollingsworth asked about the gap in the budget from the loss in  new homes bonus in years 3 and 4

The Director for Organisational Development and Corporate Services explained that the NHB figures are based on current information. However there is a fixed pot for NHB so it depends on the number of new homes other councils are able to generate which will determine the proportion of the NHB we receive.

Recommendations: That the City Executive Board resolves to:

1.    Agree the amendments to the Consultation Budget, in light of the outcomes of the public consultation.

2.    Recommend that Council approve the 2017-18 General Fund and Housing Revenue Account budgets and the General Fund and Housing Revenue Account Medium Term Financial Plan as set out in Appendices 1-10, noting:

a)    the Council’s General Fund Budget Requirement of £21.055 million for 2017/18 and an increase in the Band D Council Tax of 1.99% or £5.67 per annum representing a Band D Council Tax of £290.19 per annum

b)    the Housing Revenue Account budget for 2017/18 of £44.285 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2017 giving a revised weekly average social rent of £105.65 as set out in Appendix 4

c)    the General Fund and Housing Revenue Account Capital Programme as shown in Appendix 6.

3.    Recommend that Council agree not to implement the voluntary ‘Pay to Stay’ policy for Council house tenants (para 28 refers)

4.    Recommend that Council agree the fees and charges shown in Appendix 7 with the amendment to waive the fees for:

·         Interment of a  child  who at the time of death was less than 1 month (Resident); and

·         Interment of a child who at time of death was prior to 12^th birthday (Resident).

5.    Recommend that Council delegate authority to the Section 151 Officer in consultation with the Board Member for Finance, Asset Management and Public Health the decision to determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 16-17 below.

6.    Recommend that Council agree an additional loan of up to £75,000 for working capital to Oxwed as highlighted in paragraph 41

7.    Recommend that Council agree provision of a loan facility to Oxford City Housing Ltd of up to £61 million (paras 39-40) an extra £48.75 million over the next four years, subject to the provision of; and agreement to a business plan by the Company.

8.    Recommend that Council agree to retain the additional £200,000 pension provision to cover potential increased liability to the Council arising from TUPE transfer of staff to a Local Authority wholly owned company for Direct Services.