Lead Member: Councillor Turner, Executive Board Member for Finance, Corporate Asset Management and Public Health

The Head of Financial Services has submitted a report which presents the Medium Term Financial Strategy 2016-20 and 2016-17 Budget for approval prior to consultation.

Recommendations:  That the City Executive Board resolves to:

1.            Approve the 2016-17 General Fund and Housing Revenue Account budgets for consultation 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 £19.823 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum representing a Band D Council Tax of £284.52 per annum;

b)     the continuance of the Council’s Council Tax Support scheme (formerly Council Tax Benefit) as referred to in para 34;

c)     the Housing Revenue Account budget for 2016/17 of £43.460 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4;

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

2)    Agree the fees and charges shown in Appendix 8 and the change to concessions as referred to in para 37i(viii);

3)    To note the prioritised list of Capital Schemes that are held in reserve, pending the receipt of further resources, as shown in Appendix 7; 

4)    Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets 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 25-26; and

5)    To note the intention of officers to seek an exemption from the requirement to decrease dwelling rents by 1% as referred to in paragraph 44 and the potential changes to the HRA budget.

The Head of Financial Services submitted a report which presented the Medium Term Financial Strategy 2016-20 and 2016-17 Budget for approval prior to consultation.

Cllr Turner, Board Member Finance, Corporate Asset Management and Public Health presented the report and highlighted the following points:

·         The budget had been prepared in the context of the Autumn Statement announcement of a further 24% cut in local government spending

·         the Government was passing the Business Rate risk to local authorities and this was treated as a substantial risk item in later years of the draft budget

·         the expiry of the staff pay settlement was another risk area

·         there were no cuts to front line services

·         the capital programme had been trimmed back but the Council remained committed to all the projects on the reserve list

·         The Housing Revenue Account was the highest risk area as a result of government policy changes and as a result the Council was looking at other alternative options to deliver its commitment to council housing

·         the City Council’s element of the council tax increase was capped at 1.99%

The Head of Financial Services said that this had been a particularly challenging year and that there were still a number of uncertainties in the draft budget. 

The Chief Executive reminded the Board of the scale of recent changes underpinning the Budget.  It was a significant achievement to maintain service levels and the capital programme against a significant reduction in income in recent years.  He commended the work of the Council staff in delivering efficiency savings.  

The Board thanked the Head of Financial Services and his staff for their hard work in preparing the 2016-17 Budget for consultation.

The City Executive Board resolved to:

1.     Approve the 2016-17 General Fund and Housing Revenue Account budgets for consultation 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 £19.823 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum representing a Band D Council Tax of £284.52 per annum;

b)     the continuance of the Council’s Council Tax Support scheme (formerly Council Tax Benefit) as referred to in para 34;

c)     the Housing Revenue Account budget for 2016/17 of £43.460 million and a reduction of 1% (£1.06/wk) in social dwelling rents from April 2016 giving a revised weekly average social rent of £104.79 as set out in Appendix 4;

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

2)    Agree the fees and charges shown in Appendix 8 and the change to concessions as referred to in para 37i(viii);

3)    Note the prioritised list of Capital Schemes that are held in reserve, pending the receipt of further resources, as shown in Appendix 7;

4)    Delegate to the Section 151 Officer in consultation with the Board Member for Finance and Assets 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 25-26; and

5)    Note the intention of officers to seek an exemption from the requirement to decrease dwelling rents by 1% as referred to in paragraph 44 and the potential changes to the HRA budget.