Councillor Brown joined the meeting.

The Head of Financial Services submitted a report which presented the outcome of the budget consultation and seeks agreement to the Council’s Medium Term Financial Strategy for 2016-20 and 2016-17 Budget for recommendation to Council.

The Executive Board Member Finance, Asset Management and Public Health presented the report.  He thanked the Scrutiny Finance Panel for their contribution and recommendations. The Board agreed that the involvement of the Scrutiny Finance Panel was a welcome and productive part of the Council’s budgeting process.  He thanked the Head of Financial Services and his team for all their hard work in preparing the budget and noted that they had been accurate in their predictions concerning the Government’s financial settlement.

He informed the Board that the Government’s Final Finance Settlement announcements on 8 February 2016 together with the passage of the Welfare Reform and Work Bill through Parliament had necessitated the changing of two of the recommendations to Council as detailed in the supplementary report submitted to the Board.

In discussion the Board noted the following points:

Settlement Funding Assessment (SFA) – the forced reduction in funding over the period represented a significant challenge and it was to the Council’s credit that services had been safeguarded 

Retained Business Rates – this was an area of significant uncertainty and volatility

Revenue Support Grant four year funding settlement - the opportunity to bid for this funding was welcome but there was no guarantee that the income would be forthcoming. The Executive Board Member Finance, Asset Management and Public Health confirmed that he and the s151 Officer would refer any substantive considerations to the Board.

Capital programme – this would provide some buffer and delay/minimise any immediate adverse impact on the revenue budget; all schemes on the waiting list had been moved to the main capital programme

Efficiency savings – the management and administration reviews had delivered savings in the current year.  There were two areas to consider for future efficiency savings:

·         creating a more sustainable income from exploiting assets and commercial rents

·         encourage the take up of more web-based transactions / payments

The Chair of the Scrutiny Committee presented the Finance Panel’s recommendations on the budget noting that 18 of the 24 recommendations had been accepted. He urged the Board to consider the benefits of adopting a gross budget based approach in the future.  With regard to the remaining 6 recommendations the Board noted the following responses:

·         Recommendation 6 – Agreed in part but noting the environmental and planning considerations.

·         Recommendation 8 – Agreed in part.  The Board agreed in principle but ultimately it was not in the Council’s control.

·         Recommendation 9 – Agreed in part.  The Board agreed in principle but did not think that the examples given were particularly representative of the point at issue.

·         Recommendation 11 – Not agreed. There was no underspend in this area.

·         Recommendation 16 – Not agreed.  The Board would maintain a watching brief and meet its legal obligations.

·         Recommendation 19 – Not agreed. The need for a programme based approach to capital works was less relevant for this Council because we retained a Direct Services function.

In conclusion the Board agreed to add an additional recommendation based on the proposal set out at paragraph 20 of the report:It is recommended that the decision to join the Business Rates Distribution Group is delegated to the Section 151 Officer in consultation with the Executive Member for Finance and Asset Management and Public Health once business rates estimates for 2016-17 are known for all Districts within Oxfordshire.

The City Executive Board resolved to recommend Council to:

1.    approve the General Fund Budget Requirement of £19.853 million for 2016/17 and an increase in the Band D Council Tax of 1.99% or £5.55 per annum as set out in Table 8 and Appendices 1-4, representing Band D Council Tax of £284.52 per annum. The additional amount of £146k over the four year period to go towards the funding of the Council’s General Fund Capital Programme;

2.    approve the continuance of the Council’s Council Tax Support Scheme (formerly Council Tax Benefit);

3.    approve the Housing Revenue Account budget for 2016/17 of £43.487 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 for all Council dwellings other than sheltered accommodation. In respect of sheltered accommodation that a rent increase of 0.9% is applied (average £0.88 per week increase) generating an additional income originally proposed of £27,000 for one year to be used in full or in part for improvements in the provision of sheltered accommodation.  Such changes will be subject to the Welfare Reform and Work Bill becoming law and no exemption being granted) but that in the event that an exemption or partial exemption is granted that the rent be increased in accordance with the terms of the exemption or partial exemption subject to notice being given to tenants of the proposed rent increase.  In that event a further report will be made to CEB and Council detailing the consequential effect on the Housing Revenue Account budget

4.    approve the Capital Programme for 2016-20 as set out in Appendix 6 subject to funding availability from 2017-18 onwards;

5.    approve the Fees & Charges schedule as set out in Appendix 8;

6.    delegate to the Section 151 Officer in consultation with the Executive Board Member for Finance, Asset Management and Public Health the decision to apply for the four year funding settlement and determine whether it is financially advantageous for the Council to enter into a Business Rates Distribution Agreement as referred to in paragraphs 13 and 17-18; and

7.    delegate to the Section 151 Officer in consultation with the Executive Member for Finance, Asset Management and Public Health the decision to join the Business Rates Distribution Group once business rates estimates for 2016-17 are known for all Districts within Oxfordshire.

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.